We constantly hear about how fast Christmas comes around each year and already selection boxes are appearing in our grocery stores and social media posts are being put up about how many weeks remain until Christmas. However, does anything really come around quicker than the Government’s yearly budget? It seems like only yesterday that we were giving you the main points on last year’s budget and now here we are again to break down the key points of this year’s budget. Indeed this year’s budget seems to have entirely crept up on us all, and slid into the world without much of a fanfare. So, what does Budget 2019 have in store for us all in the coming year?
As you are aware, we are huge supporters of Irish Small and Medium Businesses so there was some welcome news announced in the budget.
A future Growth Loan Scheme for SMEs and those in the agriculture sector will be launched.
€110million in Brexit measures will be put in place.
Taxes and Wages:
- There will be a reduction in the third rate of Universal Social Charge (USC) from 4.75 to 4.5%
- The second rate band threshold for USC will increase from €19,372 to €19,874
- An increase in the tax free threshold on transfers between parents of children will take the threshold from €310,000 to €320,000.
- Weekly threshold for higher rate of employer’s PRSI will increase from €376 to €386.
- Minimum wage to increase to €9.80 from January 1st.
- VAT to increase from 9 to 13.5%.
- Self-Employed individuals will receive a further €200 to their earned income tax credit.
This has been a hot topic this year and something that has hit the headlines on numerous occasions. What action are the government implementing?
- There will be €2.3billion allocated to the housing programme.
- An additional €121million will be allocated to the Housing Assistance Payment.
- €60million allocated to funding emergency accommodation and €30million allocated to homelessness services.
- There will be funds allocated to a ‘Serviced Sites Fund’ which will aim to have local authorities begin to provide affordable housing.
- Mortgage interest relied to be increased to 100% for landlords.
- All weekly social welfare payments will increase by €5 from next March.
- Christmas bonus to be fully restored this year.
- From November 2019 a new parental leave scheme will offer 2 extra weeks leave to all parents in the first year of the child’s life. The aim will be to increase this to 7 weeks over time to bring Ireland more in line with other European countries.
The government have come under fire for this budget as it has been suggested that it doesn’t go far enough on crucial matters from climate change to tourism and national debt. This is however the first time that we have seen the national books balanced since 2007 so it is hopefully a step in the right direction.
Should you have any concerns, queries or require further information on these or any other business and financial matters please don’t hesitate to contact us we are always available to help.
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