Royal Canal Financial Control Services

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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 2023Budget 2022
Capital Gains Tax Rate 33%33%
Capital Acquisitions Tax Rate 33%33%
Income Tax Rates   
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 with dependent children€44,000€40,800
 Married -one income earner€49,000€45,800
 Married – two income earners€80,000€73,600
 Contribution CeilingNo limitNo limit
Universal Social Charge   
 < €13,000ExemptExempt
 € 0 – €12,0120.5%0.5%
 €12,013 – €22,920 2.0%
 €12,013 – €21,295  2.0%
 €22,921 – €70,044 4.50%
 €21,296 – €70,0444.50%
 €70,044 – €100,0008%8%
 Self employed income > €100,00011%11%
 PAYE income in excess of €100,0008%8%
 Age >70/medical card holders with income < €60,000 – Max rate2.0%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.