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Budget 2014 – What impact will it have on your finances?

Budget 2014 Overview

Budget 2014 was delivered yesterday. As you are most likely aware there are no significant changes to the operation of PAYE, PRSI or to USC. However, there are significant changes in other areas you need to be familiar with.

PAYE/TAX

  • Tax Credits – No Change to the Standard Credits and Standard Rate Cut Off Points.
  • Single Parents Tax Credit has been abolished.
  • New Single Person Child Carer Credit has been introduced. (Only available to the primary carer, the single parent with whom the child resides.)
  • Rent Relief has been reduced (as per Budget 2010)
  • Tax Relief at Source (TRS) for Medical Insurance to be capped at €1,000 per adult and €500 per child
  • New Home Renovation scheme, tax credit of 13.5% based on cost of building. Minimum value spent €5,000, with a maximum spend of €30,000. The credit will be spread over two years.

Benefit In Kind

Cars – Mileage table converted to KM

  • o to 24000 KM – 30% OMV
  • 24001 to 32000 KM – 24% OMV
  • 32001 to 40000 KM – 18% OMV
  • 40001 to 48000 KM – 12% OMV
  • 48001 + KM – 6% OMV

• Top Slicing Relief has been abolished

• Start Your Own Business (SYBO), for individuals who have been unemployed for 15 months, income up to €40,000 is deemed to be tax exempt for two years.

Local Property Tax (LPT)

  • No Change.

Universal Social Charge (USC)

  • No Change.

Social Welfare Benefits

  • No Change to PRSI.
  • Illness Benefit (No change to payment rates).
  • Rates only payable after 6 days of absence (previously 3 days).
  • Maternity Benefit
  • Minimum & Maximum rates merged to a single value of €230.
  • For a full list of Budget 2014 Social Welfare changes (www.Welfare.ie)

Other areas to note for TAX

  • VAT standard rates to remain the same.
  • VAT for tourism at 9% to be maintained for 2014.
  • Cash Basis for VAT, threshold increased to €2 million.
  • Motor Tax no change.
  • VRT no change.
  • Excise Tax (varied).
  • Deposit Interest Retention Tax (DIRT) 33% to 41%.
  • Capital Gains Tax, (CGT @ 33%) No change.
  • Capital Acquisitions Tax, (CAT @ 33%), No change.
  • Death & Gifts Tax – tax free thresholds, No change.

Full details are available from the Budget 2014 (Dept Finance)

Summary of the tax details available from Revenue Budget 2014

Summary of the welfare details available from Welfare Budget 2014

 

Cork Office

CareerWise Recruitment. EastGate Village, EastGate, Little Island, Cork.

Phone: +353 (0) 21 206 190

Email: info@careerwise.ie