Bruce Stanley, Tax Partner with HLB Ireland, says the budget represents an effort to strengthen Ireland’s economic resilience
ACTIVITY
Tax compliance and reporting continue to increase in complexity.
Additional reporting for employees and the impact on Revenue’s interpretation of employees versus self-employed people following The Revenue Commissioners v Karshan (Midlands) Ltd. t/a Domino’s Pizza case in 2023 has created a significant administrative burden for SMEs.
HLB Ireland’s tax practice has continued to grow strategically, including the recent additions of Niall Hackett (of NMH Chartered Accountants) in the private client sector and Peter Daly (of Peter Daly Chartered Accountants) in the arts sector.
This reflects our commitment to deepening our presence in these markets and has strengthened the depth of our expertise and ability to continue to deliver bespoke, high-calibre advice.
BUDGET 2026
Overall, Budget 2026 represents a stability-focused, balanced effort to safeguard Ireland’s economy and address key social challenges.
It seeks to stimulate housing supply, urban regeneration and business investment without fuelling inflation, through targeted measures such as construction incentives and enhanced R&D supports.
The budget represents an effort to strengthen Ireland’s economic resilience by tackling structural issues rather than relying solely on short-term fiscal boosts.
That being said, the green transition will need to be addressed further in future budgets.
The increase in the minimum wage applies from January 1, but the VAT rate doesn’t reduce until July next year.
This results in six months of additional costs without the corresponding relief for a sector that’s already under pressure.
There are continued compliance pressures, including pension reforms and reporting requirements, but little support to offset the administrative burden for small business owners.
REGENERATION
The extension of the Living City Initiative to December 31, 2030, is a welcome development, particularly with its broadened scope to include properties built up to 1975, as well as new regional areas beyond the original six cities.
This wider eligibility, along with continued support for “over-the-shop” residential conversions, should make the relief more accessible to a broader range of property owners and SMEs engaged in regeneration.
By offering accelerated tax relief for refurbishment and conversion works, the measure aims to stimulate investment in older urban and town centre buildings — breathing new life into vacant spaces and supporting more sustainable, mixed-use development.