NOW THAT THE weeks of speculation are over, and this year’s Budget has been announced, let’s get specific about what it means for you.
If you’ve been making about €30,000 or so, here’s how things will change for you next year.
The lower rate of income tax is staying the same at 20% so there’s no change there. But if you’re self-employed, a tradesperson or farmer for example, you’re going to benefit from an additional tax credit of €550 for the year.
Saving: €550 if you’re self-employed
Whether you’re PAYE or self-employed, this is where you’re going to make some savings. If you’re earning €30,000, you’re currently paying USC across the top three rates totalling about €1,245 a year.
Each of these top three rates have now been reduced, the bottom two by 0.5% and the third rate by 1.5%. The USC situation is now:
On the first €12,012 = 1%Up to €18,668 = 3%Up to €70,044 = 5.5%
It means that your USC payments next year will now total about €923.
Saving: €322
If you have children, you’ll get an extra €5 a month from the child benefit, which is being increased from €135 to €140.
Increase: €60
For a detailed and comprehensive breakdown of how the Budget will impact your individual circumstances, check out our Budget Calculator.
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