MOST OF WHAT was contained in today’s budget was of course well-flagged, but now that the speeches are done and dusted we can take a look at what it all means for you.
If your income is anything up to €20,000, here’s how things will be affected for you in the coming year.
Rates of PAYE income tax have remained unchanged so not much difference will be seen here.
If you’re self-employed or trying to get a small business off the ground, there has been another increase (though slightly less than what was flagged) in the earned income tax credit of €400.
The rate still lags behind the automatic deduction for PAYE workers of €1,650 however.
Saving: €400 if you’re self-employed
With cuts to three brackets of the Universal Social Charge, you can expect a saving here, regardless of whether you’re PAYE or self-employed.
If you’re earning €20,000, you’re currently paying USC across the top three rates totalling about €393 a year.
Each of these top three rates have now been reduced by 0.5%, while the second cutoff band has been increased slightly to €18,772.
This is now the USC obligation for someone earning €20,000:
It means that your USC payments next year will now total about €290.
Saving: €103
Not a taxation measure, but social welfare rates have been increased by €5 across the board. So this change will affect things like disability allowance.
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