Budget 2019 main points:
Income Tax, USC & Tax Credits
- The Universal Social Charge of 4.75% (levied on incomes between €19,300 and €70,000) will be reduced by 0.25% to 4.50%.
- The threshold at which people pay the higher rate income tax of 40% will increase by €750 from €34,550 to €35,300.
- The threshold at which people hit the lower 2 per cent rate of USC, levied on incomes between €12,000 and €19,000, will be widened by €500 to take account of a 25 cent increase in the minimum wage.
- PRSI for the self employed to be expanded, including job seeker’s allowance.
- Earned income tax credit for the self employed will increase by €200.
- Minimum wage will be increased to €9.80 next year.
- New scheme will give parents two week’s paid parental leave (increasing to seven weeks in future years).
- Tax free threshold for Inheritance increased by €10,000 to €320,000 for Class A (children).
- Excise on cigarettes to increase by 50 cents & pro-rata increase on other tobacco products.
- No increase in excise on diesel or carbon tax.
- No increase in alcohol excise.
- 9 per cent VAT rate for the hospitality sector will increase to 13.5 per cent for all areas of the sector, apart from newspapers and sporting facilities.
- Betting tax to increase from 1 per cent to 2 per cent.
- Home carer tax credit will increase by €300
- Up to 100,000 people may qualify for free GP care
- 50 cent reduction in prescription charges for over 70’s
- €10 reduction in monthly drugs payment scheme
- Capital spending on housing will increase by €482 million
- Introduction of 100% mortgage interest relief for landlords
- Affordable housing scheme with subsidies of up to €50,000 per house, aiming to deliver 6,000 homes over 3 years.
- All social welfare payments will increase by €5 in March 2019.
- The Christmas Bonus has been restored to 100%.
- Increase in Employers PRSI by 0.1% in 2019 and 2020.
- No change in 12.5% corporation tax.
- Share options increased to SME employers to attract skilled workers.
- Review of Crowd Funding in Ireland as a form of fund raising for SMEs.