Four Things Owner/Managers Should Do After Budget 2027
Four Things Owner-Managers Should Do After Budget 2027
By Allan Egan, Managing Director, Borgo
Every October, business owners hear what the Budget contains. Far fewer get a clear answer to the question that matters: what should I actually do about it?
For most small and owner-managed businesses in Ireland, Budget 2027 isn't dramatic. Personal tax savings are modest, staff costs are rising and there are some useful changes for anyone planning a sale or thinking about succession. But the real impact depends on your own numbers, and on the decisions you make in the months ahead.
Here are the four things I'd encourage every owner-manager to look at for 2027.
1. Review how you pay yourself
From 2027, the standard rate band rises to €46,500 for a single person, and the personal, employee and earned income tax credits each increase by €125. The changes are modest, but if you take income through your company, they're a good opportunity to review how you take income from the business.
Many owner-managers set their pay once and leave it for years. A short review can make sure the way you pay yourself still suits your circumstances for the year ahead.
2. Plan your wage bill for the whole team, not just the minimum wage
The National Minimum Wage rises to €14.94 an hour from January 2027. The lower rate of employer PRSI now applies on weekly earnings up to €600, which helps offset some of the increased cost for lower-paid staff.
What often gets missed is the knock-on effect. When pay rises at the bottom, it puts pressure on pay differentials across the rest of the team. If your supervisor now earns only slightly more than the people they manage, you'll hear about it.
Model your full 2027 wage bill before pay conversations start, so you can make decisions on your terms rather than reacting to them.
3. Check your preliminary tax position
The threshold for a company to be treated as a "small company" for preliminary tax rises from €200,000 to €350,000. If your company is now under that threshold, you may be able to base your preliminary tax on last year's liability, which makes your tax payments far easier to predict and plan for.
It's worth a quick conversation with your accountant to confirm where you stand and what it means for your cash flow.
4. If a sale or succession is on the horizon, revisit your timeline
The standard rate of Capital Gains Tax falls from 33% to 31%. On its own, two percentage points may not sound like much. Combined with the increased €1.5 million lifetime limit available under Revised Entrepreneur Relief, those changes are worth looking at if you're considering a sale or succession in the years ahead.
Succession planning takes years, not months. If you expect to step back in the next five to ten years, now is a good time to start the conversation.
The bigger picture
If you do only one thing after this Budget, update your cash flow forecast for 2027. Taken individually, most of the changes look manageable. Taken together, rising wages, pension auto-enrolment, PRSI and higher operating costs add up. Understanding their combined impact will help you make better decisions before problems arise.
That's why the businesses that cope best aren't the ones that read every Budget headline. They're the ones that know their numbers throughout the year, so they can see the impact early and act on it. As I wrote recently, by the time your annual accounts arrive, it's usually too late to change the outcome.
If you'd like to understand what Budget 2027 means for your own business, talk to your accountant. And if you'd like a second opinion, we're always happy to have that conversation.
Author bio: Allan Egan is Managing Director of Borgo, an award-winning accountancy firm based in Swords. Borgo was named Practice of the Year 2026 and Online Practice of the Year 2025 & 2026 at the Irish Accountancy Awards.
Need help understanding your numbers? If you'd like a clearer picture of what Budget 2027 means for your business and your plans for the year ahead, we'd be happy to help. Contact us at info@borgo.ie or visit Borgo to learn more.