9% VAT remains – this is good news for anyone in the hospitality industry.
Corporation Tax has escaped again remaining at 12.5%, very nice.
Self-employed earned income tax credit increased by 200 euro to bring us up from 950 to 1150. PAYE employees get an income tax credit of 1650. It means we will pay 200 euro less per year in tax. The earned income tax credit doesn’t apply to rental or investment income.
Reduction in USC rates that experts are saying will give us about 9 euro extra per week, though no reduction for anyone earning over 100K.
Increase in the cut-off point – we can now earn 34,550 at the lower tax rate. Anything above this, you are paying at least half to Revenue. For a married couple being jointly assessed, one of you can earn up to 43,550 and your other half can take the remainder. If only one of you is working the maximum you can earn is 43,550.
Sneaky increase in the Employer’s PRSI that has received very little media coverage. It is going up by .1% per year for the next 3 years. So from January 2018 it will increase to 10.85% ending up at 11.05% by 2020. It’s going to the National Training Fund.
There was a blow to anyone looking to buy a commercial property, the stamp duty rates have jumped up from 2% to 6%.
No changes to petrol or diesel.
Loans at 4% interest rate are to be made available to businesses to ‘prepare for Brexit’ – what that entails is obviously not very clear as yet, nor is the criteria for qualifying for this loan. SMEs generally have to leave their first born on the bank steps to qualify for any loan – will this be any different?We will see.
In the past if you wanted to give share options to key employees, it came with a sting – a nasty tax bill on money they didn’t actually receive. This new incentive moves the tax out to the end of the line – when the shares are sold and your employee actually receives cash out of which to pay the tax bill. Details are still being hammered out.
After your busy week…
Those cigarettes are topping out at 12 euros a box now.
Oddly no matching increase in smoking addiction services.
Your deserved weekend tipple is unaffected but leave out the sugary mixer at 30c extra per litre.
Pints all the way – no change!
Did we miss anything?
Is Budget 2018 affecting your business in some way we haven’t mentioned? Please let us know!