NOW THAT THE weeks of leaking is 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 rates of income tax are staying the same so there’s no change there, but if you’re self-employed there was some good news. The self-employed earned income tax credit has been increased from €550 to €950.
That credit was introduced last year but has now been broadened.
Saving: €400 if you’re self-employed
Whether you’re PAYE or self-employed, you’re going to make some savings here. If you’re earning €30,000, you’re currently paying USC across the top three rates totalling about €943 a year.
Each of these top three rates have now been reduced by 0.5% and the second band has been increased slightly.
This now the USC obligation for someone earning €30,000:
0.5% on the first €12,012 = €60.06
2.5% on up to €18,772 = €169
5% on up to €30,000 = €563
It means that your USC payments next year will now total about €793.
Saving: €150
Not a taxation measure, but social welfare rates have been increased by €5 across the board. So this change will affect things like child benefit.
For a detailed and comprehensive breakdown of how the Budget will impact your individual circumstances, check out our Budget Calculator.
To embed this post, copy the code below on your site
have your say