The 2019 budget was announced on the 9th October 2018 by Finance Minister Paschal Donohue, the minister announced a number of important changes; namely the increase in the tax credit for small business owners and self-employed people from €1,150 to €1,350, the increase of the home carers tax credit from €1,200 to €1,500 and a reduction in the middle rate of USC which now stands at 4.5%. He also announced an increase to the entry point for the higher rate of income tax. The entry point for a single person will increase from €34,550 to €35,300.
The Minister announced that the 9% VAT rate on services and goods (with the exception of newspapers and sporting facilities) will increase to 13.5% from 1 January 2019.
In other taxes the Capital Acquisitions Tax Group A Threshold is increasing by €10,000 to €320,000.
The Key Employee Engagement Programme (KEEP) is enhanced including an increase to the quantum of share options that can be granted under the scheme from €250,000 to €300,000.
For further details on the announcements in this year’s budget see our PKF-FPM Budget Report 2019 and if you wish to discuss your specific tax queries, please contact our Senior Tax Manager, Caroline Murphy at firstname.lastname@example.org Senior Tax Manager, Caroline Butler at email@example.com