News

This is a special update for our clients regarding the changes taking effect with the Budget 2016.

  1. 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.
  2. Minimum Wage Increase
    • January 2015 €8.65
    • January 2016 €9.15
  3. 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
  4. Employers PRSI
    • Increased entry point to the top rate of 10.75% by €20 per week to €376 per week
  5. Paternity Leave
    • 2 weeks paternity leave for September 2016, not sure how this is going to be implemented as of yet.
  6. Self Employed
    • €550 Tax Credit for the self-employed if they don’t have a PAYE tax credit
  7. Capital Acquisitions Tax
    • The tax free threshold in group A is increased from €225,000 (2015) to €280,000 (2016)
  8. Capital Gains Tax
    • The CGT Rate for entrepreneurs selling their business is reduced from 33% to 20% up to 1 million euro
  9. Teachers
    • 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
  10. Gardai
    • Extra 600 gardai to be recruited in 2016
  11. 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
  12. Commercial Vehicles
    • Road tax on commercial vehicles to be a maximum of €900 down from the highest €5195
  13. 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
  14. 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.