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.
• 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
• 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
• No changes noted.
• 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
• 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.
|Budget 2022||Budget 2021|
|Capital Gains Tax Rate||33%||33%|
|Capital Acquisitions Tax Rate||33%||33%|
|Income Tax Rates|
|39% (39% – where payments made less frequently than annually)||39% (39% – where payments made less frequently than annually)|
|Home Carer Credit||€1,600||€1,600|
|Earned Income Tax Credit||€1,700||€1,650|
|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|
|Contribution Ceiling||No limit||No limit|
|Universal Social Charge|
|€ 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.