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Budget 2024
10th October 2023
Last Updated: 10th October 2023
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
We will endeavour to update this with any major changes or announcements as we digest the budget this year.
Personal Taxation
• Minimum wage to increase on 1st January 2024 from €11.30 to €12.70
• Rent tax credit for private tenants not in receipt of other State housing supports: Increased from €500 to €750, and now includes students in “digs” (rent a room). Claims can be back-dated for the 2022 and 2023 tax years.
Energy Crisis Update & Supports
• 9% VAT rate on light and heat extended to end of October 2024
• Credit on domestic electricity of €450 that will be over 3 payments of €150 each with first one before Christmas, and the third credit in April 2024
• Business Supports: Increased Cost of Business Scheme designed to help small and medium sized businesses with rising costs (fund of €250m)
• Weekly social protection payments will increase by €12
• Social Welfare “Cost of Living Support”: An extra “double week” will be paid in January 2024 to all qualifying recipients
• €400 extra payment in December 2023 for those in receipt of Carer’s Support Grant, Disability Allowance, Blind Pension, Invalidity Pension and Domiciliary Care Allowance.
• Fuel Allowance: €300 lump sum payment will be made in last quarter of 2023
• College fees: Families with an income of less than €100,000 will have college fees for undergraduate students halved to €1,500 (note: 2023 fees reduction to €2,000 remains in place in all other cases).
• Excise for petrol, diesel and marked gas – Amounts deferred will come into effect in 2 installments next year – 1st April 2024 and 1st August 2024
• Mortgages interest relief (1 year): On principal private residence with mortgage between €80,000 – €500,000 at 31/12/2022, tax relief available on the increase on 2023 v 2022 (max relief €1,250 per property).
Business Taxation & Regulation
• Existing BIK rates for electric vehicles staying the same for 2024
• Existing BIK relief (€10,000 reduction in open market value) for all other vehicles extended until 2024
• PRSI contribution rates are going up 0.1% from October 2024
• VAT registration thresholds increased from 1st January 2024; for supplies of goods €80,000 and supplies of services €40,000, turnover that is below the threshold may opt to register with Revenue for VAT.
• Landlord relief for tax years 2024 to 2027, this is where you hold the property for the 4 years, if joint owned then the relief will be apportioned. Relief is that a portion of income will be tax free as follows: €3,000 in 2024, €4,000 in 2025 and €5,000 for years 2026 and 2027. Relief is at 20% and not your tax rate. Need to also ensure registered with RTB and LPT up to date and hold tax clearance certificate. If leave the market in the years above the relief is to be paid back.
Relevant Contracts Tax and Construction Industry
• No changes noted
Indirect Taxes
• Farmers flat rate – reduced from 5% to 4.8%.
Stamp duty
• No changes noted.
Climate Change
• 0% VAT rate for solar panels for schools
• Rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €48.50 to €56.00
Capital Taxes
• No changes noted
(Local) Property Tax (LPT)
• No changes noted
Miscellaneous Provisions & Announcements
• €0.75 increase on pack of 20 cigarettes and other tobacco products
Summary Statistics:
| Budget 2024 | Budget 2023 | ||
| Capital Gains Tax Rate | 33% | 33% | |
| Capital Acquisitions Tax Rate | 33% | 33% | |
| Income Tax Rates | |||
| Lower | 20% | 20% | |
| Higher | 40% | 40% | |
| DIRT Tax | |||
| 39% (39% – where payments made less frequently than annually) | 39% (39% – where payments made less frequently than annually) | ||
| Tax Credits | |||
| Single Person | €1,875 | €1,775 | |
| Married Couple | €3,750 | €3,550 | |
| PAYE Credit | €1,875 | €1,775 | |
| Home Carer Credit | €1,800 | €1,700 | |
| Earned Income Tax Credit | €1,875 | €1,775 | |
| Rate Bands | |||
| Single/widowed | €42,000 | €40,000 | |
| Single/widowed with dependent children | €46,000 | €44,000 | |
| Married -one income earner | €51,000 | €49,000 | |
| Married – two income earners | €84,000 | €80,000 | |
| PRSI | |||
| Contribution Ceiling | No limit | No limit | |
| Universal Social Charge | |||
| < €13,000 | Exempt | Exempt | |
| € 0 – €12,012 | 0.5% | 0.5% | |
| €12,013 – €22,920 | 2.0% | ||
| €12,013 – €25,760 | 2.0% | ||
| €22,921 – €70,044 | 4.50% | ||
| €25,761 – €70,044 | 4% | ||
| €70,044 – €100,000 | 8% | 8% | |
| Self employed income > €100,000 | 11% | 11% | |
| PAYE income in excess of €100,000 | 8% | 8% | |
| Age >70/medical card holders with income < €60,000 – Max rate | 2.0% | 2.0% |
Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive sum
Terence O’Hagan – Bookkeeping Assistant
Terence joined the team in February 2023.
Elizabeth McNevin – Bookkeeping Assistant
Elizabeth joined the team in February 2023.
Michaela O’Connor – Bookkeeping Assistant
Michaela joined the team in October 2022.
Tetyana Kovalchuk – Bookkeeping Assistant
Tetyana joined the team in October 2022.
Budget 2023
27 September 2022
Last Updated: 27 September 2022
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
We will endeavour to update this with any major changes or announcements as we digest the budget this year.
Personal Taxation
• Minimum wage to increase on 1st January 2023 from €10.50 to €11.30 with PRSI and USC thresholds adjusted accordingly.
• New €500 rent tax credit for private tenants not in receipt of other State housing supports, to include for rent paid in 2022
• Vacant homes tax to be introduced in 2023 – if home is vacant for more than 30 days in 12 months, unless genuine reason will be 3 times the LPT for the home.
• 3rd rate of income tax likely to be implemented by Budget 2024
Energy Crisis Update & Supports
• Projection that there will be 4.5% inflation next year and that it is 8.5% inflation this year
• 9% VAT rate on light and heat extended to end of February 2023
• Credit on L&H for domestic of €600 that will be over 3 payments of €200 each with first one before Christmas
• Temporary Business Energy Support Scheme for energy costs over winter months – Managed by Revenue Commissioners – Need to register for scheme and return to be submitted. Will be self assessed with spot checks like the Covid Supports to send in back up. Operated by reviewing unit rate in 2022 versus same period last year (2021), if rate is greater than 50% then passed the test and support will be 40% of the increase. We await exact details of this and if you are client of ours we will be in touch with you on how it will all work and if you are entitled.
• A double Child Benefit payment (worth €140 per child) will be paid in November.
• Extra €500 for Working Family Payment and Carer Support Grant recipients in November.
• Weekly Fuel Allowance means limit for over 70s extended to €500 for single people, €1,000 for couples. Fuel allowance payment recipients to receive an extra lump sum of €400 before Christmas.
• College fees – once off reduction of €1,000
• Excise cuts for petrol, diesel and marked gas oil extended until end of February 2023
• Public transport fares reduction extended until the end of 2023
Business Taxation & Regulation
• Staff tax free voucher limit increased from €500 to €1,000, and can be given by up to 2 vouchers in one year and is said to be valid from 2022 tax year.
Relevant Contracts Tax and Construction Industry
• No changes noted
Indirect Taxes
• 0% VAT rate on newspapers from 1/01/2023
• Farmers flat rate reduced from 5.5% to 5.0%
Stamp duty
• No changes noted.
Climate Change
• Farmers reliefs pending EU review
• Accelerated capital allowances for farmers for modern slurry facilities
• EV Cars and supports, it is seen that these will continue as is but nothing mentioned just yet, we will update if we hear anything as the details come clearer from the budget.
Capital Taxes
• No changes noted
(Local) Property Tax (LPT)
• No changes noted
Miscellaneous Provisions & Announcements
• €0.50 increase on pack of 20 cigarettes and other tobacco products
• Once off double week to social welfare
• Fuel allowance €400 lump sum payment before Christmas
• Social welfare weekly rates increased by €12
• Free GP care for those aged 6 and 7 by the end of 2022
• Financial support for IVF treatment
Summary Statistics:
| Budget 2023 | Budget 2022 | ||
| Capital Gains Tax Rate | 33% | 33% | |
| Capital Acquisitions Tax Rate | 33% | 33% | |
| Income Tax Rates | |||
| Lower | 20% | 20% | |
| Higher | 40% | 40% | |
| DIRT Tax | |||
| 39% (39% – where payments made less frequently than annually) | 39% (39% – where payments made less frequently than annually) | ||
| Tax Credits | |||
| Single Person | €1,775 | €1,700 | |
| Married Couple | €3,550 | €3,400 | |
| PAYE Credit | €1,775 | €1,700 | |
| Home Carer Credit | €1,700 | €1,600 | |
| Earned Income Tax Credit | €1,775 | €1,700 | |
| Rate Bands | |||
| Single/widowed | €40,000 | €36,800 | |
| Single/widowed with dependent children | €44,000 | €40,800 | |
| Married -one income earner | €49,000 | €45,800 | |
| Married – two income earners | €80,000 | €73,600 | |
| PRSI | |||
| Contribution Ceiling | No limit | No limit | |
| Universal Social Charge | |||
| < €13,000 | Exempt | Exempt | |
| € 0 – €12,012 | 0.5% | 0.5% | |
| €12,013 – €22,920 | 2.0% | ||
| €12,013 – €21,295 | 2.0% | ||
| €22,921 – €70,044 | 4.50% | ||
| €21,296 – €70,044 | 4.50% | ||
| €70,044 – €100,000 | 8% | 8% | |
| Self employed income > €100,000 | 11% | 11% | |
| PAYE income in excess of €100,000 | 8% | 8% | |
| Age >70/medical card holders with income < €60,000 – Max rate | 2.0% | 2.0% |
Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.
Certified Sick Leave – Employee Entitlements
Annual Leave
Employees can build up annual leave entitlement while they are off sick, as long as they have a medical certificate. If they are on long-term sick leave and cannot take annual leave due to illness, they can carry it over for up to 15 months after the end of the year it was earned.
Example: Annual leave for 2020 (assuming the annual leave year is the calendar year) can be carried over until 31st March 2022.
Strictly speaking, the employee shouldn’t be on annual leave in the middle of sick leave so HR advice may be needed if an annual leave payment is requested in such circumstances.
Public Holidays
Employees are entitled to public holidays for the first 26 weeks of certified illness (52 weeks for workplace accidents).
Marta Bednarz – Bookkeeping Assistant
Marta joined the team in January 2022.
Sabrina Quinn – Bookkeeping Assistant
Sabrina joined the team in July 2020.
Budget 2022
12 October 2021
Last Updated: 12 October 2021
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
We will endeavour to update this with any major changes or announcements as we digest the budget this year.
Personal Taxation (from 1st January 2022)
• Personal Tax, Employee & Earned Income Tax Credits all increase by €50 to €1,700, see table below.
• Standard Rate cut off increase of €1,500 for all earners, see table below.
• USC Bands have also changed in the 2% band to account for increase in minimum wage from 1st January 2022, see table below.
• Work from home allowance now giving 30% relief on light & heat (previously 10%) and broadband costs still allowed at 30%, vouched expenses.
• Minimum wage to increase from €10.20 to €10.50 with PRSI and USC thresholds adjusted accordingly.
• Employers PRSI threshold for higher rate increase from €398 to €410.
Covid Supports
• Employment Wage Subsidy Scheme (EWSS) extended until 30 April 2022, with rates to lower to €151.50 and €203 caps only. A flat rate of €100 per eligible employee will apply for March and April 2022, with no employer PRSI relief.
• Commercial rates waiver extended until end of 2021.
• Directors’ income tax returns with liabilities relating to directors’ remuneration – liabilities can be warehoused.
• PUP payment is to remain in place until end of Feb 2022
Business Taxation & Regulation
• Relief for start-up companies to be extended for five years.
Relevant Contracts Tax and Construction Industry
• No changes noted
Indirect Taxes
• Farmers flat rate addition decreased from 5.6% to 5.5%.
• Reduced VAT rate of 9% for hospitality will remain in place until end of August 2022
Stamp duty
• No changes noted.
Carbon Tax
• Increase of €7.50 per tonne applies from today for auto fuels and from 1 May 2022 for all other fuels. Petrol will increase by €1.28 for 60 litres, and diesel by €1.48
Capital Taxes
• No changes noted
(Local) Property Tax (LPT)
• REMINDER TO FILE: While there were no changes announced in the budget, we like to remind you that your return for the years 2022 – 2025 is due to be submitted to Revenue by 7th November 2021. While we do not take responsibility for submitting this return as the tax payer is best placed to value their property, if you are experiencing difficulty using the LPT system please feel free to contact us.
Miscellaneous Provisions & Announcements
• Tobacco increase of 50c on pack of 20
• New Youth Travel Card will provide 50% discount on fares for those aged 18 – 23
• €5 weekly increase in main welfare payments
• DPS (Drugs payment scheme) threshold decreased to €100 per month.
• Carer’s allowance weekly earnings limit increased to €350 (single person) and €750 (couples).
• Parent’s Benefit extended by 2 weeks to 7 weeks from July 2022
• Free GP care extended to children aged six and seven years
• Help to Buy scheme is been extended in its current “enhanced” form for 2022, this is to allow other measures to be put in place e.g. Shared Equity Scheme over the next year or so.
Climate & Environmental Measures – (Electric Vehicles)
• €200 tax disregard for those who can sell electricity back to the grid
• VRT Tax, from January 2022 a revised vehicle registration tax table is being introduced. The 20 band table will
remain with an uplift in rates beginning with a 1% increase for vehicles that fall between bands 9-12;
2% for bands 13-15; and then a 4% increase for bands 16-20 .
• The €5,000 relief for Battery Electric vehicles is being extended to end 2023.
• The BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure will take effect from 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023; €20,000 for 2024; and €10,000 for 2025.
Summary Statistics:
| Budget 2022 | Budget 2021 | ||
| Capital Gains Tax Rate | 33% | 33% | |
| Capital Acquisitions Tax Rate | 33% | 33% | |
| Income Tax Rates | |||
| Lower | 20% | 20% | |
| Higher | 40% | 40% | |
| DIRT Tax | |||
| 39% (39% – where payments made less frequently than annually) | 39% (39% – where payments made less frequently than annually) | ||
| Tax Credits | |||
| Single Person | €1,700 | €1,650 | |
| Married Couple | €3,400 | €3,300 | |
| PAYE Credit | €1,700 | €1,650 | |
| Home Carer Credit | €1,600 | €1,600 | |
| Earned Income Tax Credit | €1,700 | €1,650 | |
| Rate Bands | |||
| Single/widowed | €36,800 | €35,300 | |
| Awaiting update | Single/widowed with dependent children | €39,300 | €39,300 |
| Married -one income earner | €45,800 | €44,300 | |
| Married – two income earners | €73,600 | €70,600 | |
| PRSI | |||
| Contribution Ceiling | No limit | No limit | |
| Universal Social Charge | |||
| < €13,000 | Exempt | Exempt | |
| € 0 – €12,012 | 0.5% | 0.5% | |
| €12,013 – €20,687 | 2.0% | ||
| €12,013 – €21,295 | 2.0% | ||
| €20,687 – €70,044 | 4.50% | ||
| €21,296 – €70,044 | 4.50% | ||
| €70,044 – €100,000 | 8% | 8% | |
| Self employed income > €100,000 | 11% | 11% | |
| PAYE income in excess of €100,000 | 8% | 8% | |
| Age >70/medical card holders with income < €60,000 – Max rate | 2.0% | 2.0% |
Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.