Blog

Budget 2017

11 October 2016

Last Updated: 11 October 2016

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Personal Taxation
• Increase in the home carer tax credit from €1,000 to €1,100
• Rent a room relief increased from €12,000 to €14,000
• Mortgage interest relief extended to 2020

Business Taxation & Regulation
• Earned Income Credit increased from €550 to €950
• Allowable interest deduction for rental of residential property increased from 75% to 80%.

Relevant Contracts Tax and Construction Industry
• The Home Renovation Incentive (HRI) Scheme is being extended until 31 December 2018.

Indirect Taxes
• The 9% VAT rate is being retained.
• Farmer’s flat rate addition increased from 5.2% to 5.4%

Stamp duty
• No changes noted

Carbon Tax
• Fuel inputs to create high efficiency electricity now exempt from carbon tax.

Capital Taxes
• Capital Acquisitions Tax: Tax free threshold which applies primarily to gifts and inheritances from parents to their children is being increased from €280,000 to €310,000.

(Local) Property Tax
• No changes noted

Miscellaneous Provisions & Announcements
• Excise duty increase on tobacco 50c per 20 pack.
• Income tax rebate to assist first time buyers fund 20% deposit required by the Central Bank.
• The DIRT rate will be decreased by 2% each year for the four years until it reaches 33%.
• State pension will rise by €5 per week from March 2017, along with other weekly social welfare payments
• Excise duty on alcohol, petrol and diesel remains unchanged
• Sugar tax to be introduced in April 2018

Summary Statistics

		Budget 2017	Budget 2016
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)	41% (41% – where payments made less frequently than annually)
Tax Credits
	Single Person	€1.650	€1,650
	Married Couple	€3,300	€3,300
	PAYE Credit	€1,650	€1,650
	Earned Income Tax Credit	€950	€550
Rate Bands
	Single/widowed	€33,800	€33,800
	Single/widowed with dependent children	€37,800	€37,800
	Married -one income earner	€42,800	€42,800
	Married – two income earners	€67,600	€67,600
PRSI
	Contribution Ceiling	No limit	No limit
Universal Social Charge
	< €13,000	Exempt	Exempt
	€ 0 – €12,012	0.5%	1%
	€12,013 – €18,772	2.5%
	€12,013 – €18,668		3%
	€18,773 – €70,044	5%
	€18,669 – €70,044		5.5%
	€70,045 – €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	2.5%	3%

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.

Related Articles
Budget 2016
Budget 2015
Budget 2014
Budget 2013

Budget 2016

13 October 2015

Last Updated (bold type): 13 October 2015

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Personal Taxation
• Increase in home carer tax credit to €1,000, with an increase in the income limit to €7,200.
• PRSI relief for income in excess of €352 weekly, up to weekly income of €424. Reducing sliding scale of relief as income increases above €352, with maximum relief of €12.

Business Taxation & Regulation
• Earned Income credit of €550 for self-employed traders and professionals, along with directors who are not entitled to the PAYE tax credit.
• From 1st January 2016, the statutory minimum wages will be €9.15 per hour
• Increase in the threshold for paying higher rate employer’s PRSI from €356.01 to €376.01.
• 3 Year Relief for Start-Up Companies is being extended
• Supporting retailers by incentivising electronic payments (see Stamp Duty below)
• Maximum rate of commercial motor tax reduced from €5,195 to €900

Relevant Contracts Tax and Construction Industry
• The Home Renovation Incentive (HRI) Scheme is being extended until 31 December 2016.

Indirect Taxes
• The 9% VAT rate has been retained.

Stamp duty
• With effect from 1st January 2016, the current €2.50/€5.00 per annum charge on ATM cards/combined ATM & Debit Cards is being replaced with a 12c ATM withdrawal fee, but capped at €2.50/€5.00 per annum per card

Carbon Tax
• No changes to note.

Capital Taxes
• Capital Acquisition Tax: Tax free threshold which applies primarily to gifts and inheritances from parents to their children is being increased from €225,000 to €280,000

(Local) Property Tax
• 2016 property revaluations postponed until 2019

Miscellaneous Provisions & Announcements
• Increased duty on a packet of 20 cigarettes 50 cent, with a pro-rata increase in all other tobacco products.
• Paternity benefit scheme to be introduced from September 2016
• €5 increase in child benefit
• Extension of free Pre-School Year from age 3 until aged 5.5 years/start primary school
• Extension of free GP care to children under 12 years
• €3 weekly increase in pension rates
• Respite care grant €1,700 in 2016
• Social welfare Christmas bonus increased to 75%
• Pension fund levy to end in 2015

Summary Statistics

		Budget 2016	Budget 2015
Capital Gains Tax Rate		33%	33%

Capital Acquisitions Tax Rate		33%	33%
Income Tax Rates
	Lower	20%	20%
	Higher	40%	40%
DIRT Tax
		41% (41% – where payments made less frequently than annually)	41% (41% – where payments made less frequently than annually)
Tax Credits
	Single Person	€1.650	€1,650
	Married Couple	€3,300	€3,300
	PAYE Credit	€1,650	€1,650
	Earned Income Tax Credit	€550	€0
Rate Bands
	Single/widowed	€33,800	€33,800
	Single/widowed with dependent children	€37,800	€37,800
	Married -one income earner	€42,800	€42,800
	Married – two income earners	€67,600	€67,600
PRSI
	Contribution Ceiling	No limit	No limit
Universal Social Charge
	< €13,000	Exempt
	< €12,012		Exempt
	€ 0 – €12,012	1%	1.5%
	€12,013 – €18,668	3%
	€12,013 – €17,576		3.5%
	€18,669 – €70,044	5.5%
	€17,577 – €70,044		7%
	€70,045 – €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	3%	3.5%

Income Tax Returns 2014

27th April 2015

Ronan Duffy & Co. are currently completing personal income tax returns for the tax year 2014.

Revenue have announced that the online filing deadline is extended to 12th November 2015.

We also welcome new clients until 31st October 2015. After this date, we do not feel sufficient time will be available to complete a full review of your tax affairs and prepare an accurate return on your behalf. To avail of this offer and for more details, please contact Ronan Duffy & Co. on 044 93 76 668 or use our contact form.

RCFCS Conference – 15th May 2015

21st April 2015

Royal Canal Financial Control Services & Ronan Duffy & Co, are pleased to host their first ever Conference which will be held at the Regency Hotel, Dublin 9, on Friday, May 15th.

For further details please click here.

Budget 2015

14 October 2014

Last Updated (bold type): 15 October 2014

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Items marked TBC (To Be Confirmed) are attaching/related to taxation elements which were amended in Budget 2015. We await further details to confirm what changes, if any, apply to these related items.

Personal Taxation
• Artists’ Exemption increased by €10,000 to €50,000.
• Rent-A-Room Relief threshold increased to €12,000.
• Water charges tax credit of 20%, up to a maximum water charge of €500. Credit available in following year.

Business Taxation
• Corporation tax 3 year exemption extended to new businesses starting in 2015.
• 12.5% corporation tax rate being retained.

Relevant Contracts Tax and Construction Industry
• Home Renovation Scheme extended to rental properties where the landlord is subject to income tax.

Indirect Taxes
• Increase in Farmers’ Flat-Rate Addition from 5% to 5.2% from 1 January 2015.
• 9% VAT rate being retained.

Stamp duty
• No changes to note.

Carbon Tax
• No changes to note.

Capital Taxes
• Property purchases incentive (no capital gains tax if purchased property by 31st December 2014 and held for seven years) is not being extended.

(Local) Property Tax
• No changes to note

Miscellaneous Provisions & Announcements
• Extension of VRT relief on hybrid electric vehicles to 31 December 2016.
• Child benefit increased by €5 per child from 1 January 2015.
• Price of 20 pack cigarettes to increase by 40c from midnight (Other tobacco products pro-rata increase).
• 25% of Social Welfare Christmas Bonus restored.
• DIRT exemption on deposit funds for first time buyers, for private dwellings purchased from Budget night until 2017.
• No change in excise duty on old reliables – petrol/diesel, motor tax, VRT alcohol.

Summary Statistics

		Budget 2015	Budget 2014
Capital Gains Tax Rate		33%	33%

Capital Acquisitions Tax Rate		33%	33%
Income Tax Rates
	Lower	20%	20%
	Higher	40%	41%
DIRT Tax
		41% (41% – where payments made less frequently than annually)	41% (41% – where payments made less frequently than annually)
Tax Credits
	Single Person	€1,650	€1,650
	Married Couple	€3,300	€3,300
	PAYE Credit	€1,650	€1,650
Rate Bands
	Single/widowed	€33,800	€32,800
	Single/widowed with dependent children	€36,800 TBC	€36,800
	Married -one income earner	€42,800	€41,800
	Married – two income earners	€67,600	€65,600
PRSI
	Contribution Ceiling	No limit	No limit
Universal Social Charge
	< €12,012	Exempt
	< €10,036		Exempt
	€ 0 – €12,012	1.5%
	€ 0 – €10,036		2%
	€12,013 – €17,576	3.5%
	€10,037 – €16,016		4%
	€17,577 – €70,044	7%
	>€16,016		7%
	€70,044 – €100,000	8%
	Self-employed > €100,000	11%	10%
	Age >70/medical card holders with income < €60,000 – Max rate	3.5%	4%
	Age >70, income > €100,000 – Max rate	TBC	7%

Key Dates: March 2014

Our list of key dates has been updated for the month of March, simply click here.

You can access the key dates list at any time from the Business Centre.

Budget 2014

15 October 2013

Last Updated (bold type): 7 November 2013

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Personal Taxation
• No change in tax rates so no major changes in net pay. However, changes in medical insurance relief and one-parent family credits will affect some individuals.
• One-Parent Family Tax Credit – replaced by Single Person Tax Credit from 1st January 2014. Of same value but now only available to one ‘principal carer’.
• Tax relief on private medical insurance limited to first €1,000 per adult subscription and €500 per child. Please note this threshold relates to the gross premium payable. Medical insurance is usually quoted net of tax relief at 20%. The portion of the gross premium above €1,000 will not qualify for tax relief. Where renewals have already been issued/paid a balancing statement will need to be issued by the insurer.
• Start your own business tax exemption available to long-term unemployed (at least 15 months). Income tax exemption of up to €40,000 per annum for the first two years.
• PRSI on all income of PAYE workers from 2014.

Business Taxation
• No change in corporate tax rate.
• Lower rate of employer PRSI was due to revert to 8.5% in 2014. This was funded by the pension levy which has not been abolished (see stamp duty below). There has been no announcement on reverting to the 8.5% PRSI rate. The increase to 8.5% employer’s PRSI from 1st January 2014 was confirmed in the Social Welfare Bill.

Relevant Contracts Tax
• No changes to note

Indirect Taxes
• No change in the 9% VAT rate for the tourism industry.
• Increase in cash receipts threshold for VAT to €2 million from 1 May 2014.
• Farmer’s flat rate addition increased to 5% from 1 January 2014.
• VAT Anti-Fraud Measures introduced such as reversal of input credit on invoices which are not paid within six months of supply.

Stamp duty
• Pension fund levy increased to 0.75% in 2014.
• Bank levy to raise €150 million.

Carbon Tax
• No changes to note

Capital Taxes
• Property purchase incentive extended to the end of 2014 (exemption from capital gains tax for properties purchased and held for seven years).

(Local) Property Tax
• No changes to note

Miscellaneous Provisions & Announcements
• Bereavement allowance of €850 has been abolished.
• Jobseekers allowance for those under 25 cut to €100, and new rate of €144 for those reaching age 25 in 2014.
• Free GP care for under 5s (i.e. GP only medical card).
• Air travel tax abolished (“reduced to zero”). This tax was introduced in 2011 and costed around €3 per flight.
• DIRT rate increased to 41% in 2014.
• No change in motor tax, no change in duty on petrol/motor diesel
• Prescription charge increased to €2.50 per item.
• Excise duty increases from midnight 15 October 2013: standard measure +10c, 75cl bottle of wine +50c, pack of 20 cigarettes +10c
• Telephone allowance to be abolished in 2014.
• Maternity and adoptive benefit to be standardised at €230 for new claimants in 2014.
• Illness benefit waiting period increased from 3 to 6 days.
• Home renovation incentive will allow taxpayers to claim relief at 13.5% on improvements to their principal private residence. This is designed to encourage the employment of tax compliant contractors. Spend bracket €5,000 – €30,000. Further details on this scheme is now available on the Revenue website here.
• Income threshold on over 70s medical cards has been reduced to €900 to week for a couple and €500 for a single person.

Summary Statistics

		Budget 2014	Budget 2013
Capital Gains Tax Rate		33%	33%

Capital Acquisitions Tax Rate		33%	33%
Income Tax Rates
	Lower	20%	20%
	Higher	41%	41%
DIRT Tax
		41% (41% – where payments made less frequently than annually)	33% (36% – where payments made less frequently than annually)
Tax Credits
	Single Person	€1,650	€1,650
	Married Couple	€3,300	€3,300
	PAYE Credit	€1,650	€1,650
Rate Bands
	Single/widowed	€32,800	€32,800
	Single/widowed with dependent children	€36,80	€36,800
	Married -one income earner	€41,800	€41,800
	Married – two income earners	€65,600	€65,600
PRSI
	Contribution Ceiling	No limit	No limit
Universal Social Charge
	< €10,036	Exempt	Exempt
	€ 0 – €10,036	2%	2%
	€10,037 – €16,016	4%	4%
	>€16,016	7%	7%
	Self-employed > €100,000	10%	10%
	Age >70/medical card holders with income < €60,000 – Max rate	4%	4%
	Age >70, income > €100,000 – Max rate	7%	7%

Budget 2013

5 December 2012

Personal Taxation
• 4% USC cap for those aged > 70 years or medical card holders has been abolished where income is greater than €60,000.
• Employee PRSI: Removal of weekly PRSI allowance from full rate and modified rate PRSI contributors (€127).
• Self employed PRSI: Increase in minimum contribution from €253 to €500 annually.
• PRSI on Unearned Income: To apply to PAYE workers from 2014 onwards.

Business Taxation
• Committed to 12.5% corporation tax rate.
• 3 Year Relief for Start-Up Companies: Relief is extended to allow unused relief from 1st 3 years to be carried forward for use in subsequent years (subject to maximum relief in relation to employers’ PRSI).
• Close company surcharge de minus limit has been increased from €635 to €2,000.

Relevant Contracts Tax
• No changes to note

Indirect Taxes
• VAT cash receipts threshold increased from €1 million to €1.25 million from 1 May 2013.
• Motor tax increases – From 1 January 2013 higher rates apply for all categories with the exception of electric vehicles, and CO2 band A0.

Stamp duty
• No changes to note

Carbon Tax
• Extended to solid fuels – rate of €10 per tonne from 1 May 2013, and €20 per tonne from 1 May 2014.

Capital Taxes from 5 December 2012 (midnight)
• Rate increased from 30% to 33% from midnight.

(Local) Property Tax
• Collection will commence on 1 July 2013, with a half year charge in 2013.
• Rate of 0.18% of market value for properties up to €1 million, rate of 0.25% to any excess value over €1m. Charges calculated at the midpoint of property bands of €50,000 increments.
• Three year exemption for first time buyers, or those buying new or previously unoccupied houses.
• Non principal private residence charge will cease on 31 December 2013.
• Deferral of property tax in some cases subject to 4% interest charge.
• Non payment may result in deduction at source (PAYE workers) or refusal of a tax clearance certificate (self employed).

Miscellaneous Provisions & Announcements
• Maternity benefit will be taxable from 1 July 2013, but not liable to universal social charge
• BIK on preferential home loans decreased from 5% to 4%, other loans rate increased from 12.5% to 13.5%.
• Tobacco excise increased by 10c on pack of 20, 50c per 25kg pouch of roll-your-own from midnight 5 December 2012.
• Licenced road hauliers diesel excise rebate will apply from 1 July 2013.
• DIRT rate increased from 30% to 33% from payments received from 1 January 2013.
• Respite Care Grant decreased from €1,700 to €1,375 per annum.
• Dual car registration for 2013 – prefix 131 for 1st 6 months, and 132 for 2nd 6 months. The objective is to create a two period sales peak each year to help stabilise the industry.
• Medical cards will be replaced with GP Only cards for those aged > 70 and with income of €600 – €700 for a single person, or €1,200 – €1,400 for a married couple.
• Drugs Payment Scheme (DPS) increased from €132 to €144 per month, with the prescription charge for medical card holders increased to €1.50.
• Child benefit rate to be reduced by €10 per month.
• Duration of Jobseekers payment to be reduced by 3 months.
• Extension of the Credit Review Office to provide more assistance to the SME sector.
• Simplification of charitable donations so charity now gets tax relief on all donations at blended rate of 30%.

Summary Statistics

		Budget 2013	Budget 2012
Capital Gains Tax Rate		33%	30%

Capital Acquisitions Tax Rate		33%	30%
Income Tax Rates
	Lower	20%	20%
	Higher	41%	41%
DIRT Tax
		33% (36% – where payments made less frequently than annually)	30% (33% – where payments made less frequently than annually)
Tax Credits
	Single Person	€1,650	€1,650
	Married Couple	€3,300	€3,300
	PAYE Credit	€1,650	€1,650
Rate Bands
	Single/widowed	€32,800	€32,800
	Single/widowed with dependent children	€36,800	€36,800
	Married -one income earner	€41,800	€41,800
	Married – two income earners	€65,600	€65,600
PRSI
	Contribution Ceiling	No limit	No limit
Universal Social Charge
	< €10,036	Exempt	Exempt
	€ 0 – €10,036	2%	2%
	€10,037 – €16,016	4%	4%
	>€16,016	7%	7%

REMINDER Tax on Non Principal Private Residence

1st June 2012

The Local Government (Charges) Act 2009 introduced a €200 annual charge on non principal private residences, payable by the owners to the local authority in whose area the property concerned is located. Liability for 2012 is assessed on the owner at 31st March 2012 (‘liability date’), with the due date of payment being 30th June.

There is no escape from the property tax:
• Revenue have access to ESB records and the Private Residential Tenancies Board records to compile a list of landlords assessable
•There is a fine for late payment of the tax – the charge increases by €20 monthly if not paid by 30th June. Unpaid 2009 charges have been accumulating at €20 monthly since 1st November 2009. In the event that you wish to sell your house at a later date, the purchaser will become liable to any outstanding levies on the house, and therefore may cause difficulties at this stage.

Payment can be made online or by cheque/draft/postal order.

To pay online click here

To download paper copy form (new customers) click here

To download paper copy form (renewals only) click here

For further information see the FAQ page here or feel free to give us a call.

Broadcasting Licences

The following are a list of the main licences and licence organisations that exist in retail (click on title for relevant external site):

Irish Music Rights Organisation Limited (IMRO)
An annual licence fee is payable to IMRO where music and other recorded material is broadcast in a public area including any work area. IMRO is a not-for-profit organisation which distributes the licence fee income among the performers, song writers and publishers.

Phonographic Performance Ireland (PPI)
A PPI licence is required where music and other recorded material is broadcast in a public area including any work area. This fee is payable to the producer of the broadcast, e.g. record company. An IMRO licence must normally be accompanied by a PPI licence except where there is no record company, e.g. concerts and pub performances.

TV Licence
Under the Broadcasting Act 2009 a television set is “any electronic apparatus capable of receiving and exhibiting television broadcasting services broadcast for general reception (whether or not its use for that purpose is dependent on the use of anything else in conjunction with it) and any software or assembly comprising such apparatus and other apparatus.”

National lottery commercial monitors/digital signs are exempt from the Broadcasting Act as they have no TV tuners installed. Franchisors in retail are introducing electronic advertising solutions where it is the responsibility of the retailer to purchase the equipment for the display. Care should be taken that a commercial monitor is purchased for this purpose in order to not fall foul of the requirement to purchase a TV licence.