Budget 2018 - Main Points

We welcome many of the changes brought about in today’s budget, not least the Government’s commitment to addressing the homeless crises. We have highlighted awareness of this in the past and supported some of the great work done by the charities involved in this sector. The Finance Minister spoke at length on income taxes during today's Budget announcements. This is the main topic affecting our contractors and it’s good to see recognition given to the self-employed sector yet again with the increase of the Self-Employed tax credit. This increase together with a tax band increase and USC reductions will all favour their annual after tax income. Below are the headline moved in today’s budget, please keep a watch for further comment. MAIN POINTS OF BUDGET 2018:

• 2.5% USC rate reduced to 2%, 5% rate of USC lowered to 4.75%
• Point of entering higher income tax rate raised by €750 from €33,800 to €34,550
• Minimum wage increased by 3.24% to €9.55
• A reduction in the prescription levy from €2.50 per item to €2 per item
• Mortgage relief has been lowered to 75% for 2018, 50% 2019 and 25% in 2020
• €1.83bn is being allocated for housing in 2018
• Some 3,800 new social houses will be built next year
• HAPS (housing assistance) scheme will getting additional €149m to support an additional 17,000 households in 2018
• An extra 50c on a pack of 20 cigarettes
• 1,300 extra teaching posts in schools for 2018
• 12.5% Corporation Tax Rate remains unchanged
• Earned Income Credit raised €200 to €1,150 in 2018

If you have any questions on how these changes will affect you as a Contractor, please contact us via info@iconaccounting.ie or call (01) 8077016. Team Icon