This is a special update for our clients regarding the changes taking effect with the Budget 2016.
- USC Charges have gone down
- The lowest rate (Zero to €12,012) will drop to 1%.
- The middle (from €12,012 to next €6,655) will fall to 3%
- The top rate of USC (Next €51,375) will go down to 5.5%
- Income above €70,044 will be charged 8%.
- Anyone who earns less than €13,000 at the end of the year, is entitled to claim their USC back.
- Minimum Wage Increase
- January 2015 €8.65
- January 2016 €9.15
- Home Carers Tax Credit
- The Tax Credit is increased to €1,000 in 2016
- The income threshold is raised from €5,080 to €7,200
- Employers PRSI
- Increased entry point to the top rate of 10.75% by €20 per week to €376 per week
- Paternity Leave
- 2 weeks paternity leave for September 2016, not sure how this is going to be implemented as of yet.
- Self Employed
- €550 Tax Credit for the self-employed if they don’t have a PAYE tax credit
- Capital Acquisitions Tax
- The tax free threshold in group A is increased from €225,000 (2015) to €280,000 (2016)
- Capital Gains Tax
- The CGT Rate for entrepreneurs selling their business is reduced from 33% to 20% up to 1 million euro
- 2260 additional teaching positions to be created in 2016
- Class sizes in primary & secondary schools to be reduced
- 300 guidance counselling posts and 600 additional resource teachers to be provided
- Extra 600 gardai to be recruited in 2016
- Children & Families
- €5 increase in child benefit per week
- Extension of free pre-school care for 3-5.5 year olds
- Free GP care extended to children under 12
- Threshold for Family Income Supplement increased to €5 per week for people with 1 child and €10 per week with 2 or more children
- Commercial Vehicles
- Road tax on commercial vehicles to be a maximum of €900 down from the highest €5195
- ATM Charges
- No stamp duty for owning a debit card any more but it is replaced with a 12c fee for every time you withdraw cash from an ATM capped annually at €5
- Hoteliers and Hospitality
- 9% VAT rate for the hotel & hospitality sector remains
For further information or if you have any questions regarding the budget or changes being implemented please contact us.