Budget 2019 – The Details

Budget 2019 was  announced at 1pm  Tuesday October 9th 2018  . This is a summary of the measures that will have a direct affect on people’s income and expenditure.


Taxes

Income Tax : Some small cuts to Income Tax were made in Budget 2019. The income threshold at which the 40% income tax rate kicks in – will  rise by €750 to €35,300 from €34,550 for a single earner. (Worth €150 a year)
It will increase  from €43,550 to €44,300 for married one earner couples.
(Confirmed from Jan 2019)

USC : The 4.75%  rate of the Universal Social Charge will be cut to 4.5% . (This is the rate on incomes between €19,300 and €70,000) . (Confirmed)

USC: The ceiling of the second USC rate band will be increased from €19,372 to €19,874 in order to ensure that the salary of a full-time worker on the minimum wage will remain outside the top rates of USC . ( Confirmed from Jan 2019)

Click here to see the effect of these cuts on take home pay in 2019.

Tax Credit for self employed people will be raised by €200  to  €1350 (Confirmed)

Home Carer Tax Credit increasing by €300 to  €1500 (Confirmed)

Landlords : An increase to 100% on the amount of  mortgage interest repayments  landlords can  write off against rental profits . This is worth €18 million a year to landlords.   (Confirmed from Jan 1st 2019)

The reduced VAT rate of 9% on tourism related services will be increased to 13.5%  . The 9% rate for  sports facilites and newspaper publications is retained , and the VAT rate on   electronic publications wil be cut from 23% to 9%. (Confirmed from Jan 2019)

Corporation Tax is not to be changed from 12.5% (confirmed)

Carbon tax  – No increase. (confirmed)

Inheritance Tax (CAT) –  thresholds raised by €10,000 for Children. (Now €320,000)  (Confirmed from 10th Oct 2018)

Property Tax :- Mr Donohoe has previously hinted at plans to make changes to the Local Property Tax, which is still calculated on 2013 property values. But he said any changes would be “modest” and are not expected to affect homeowners until 2020. (Confirmed)


Duty

An increase to the levels of duty on tobacco – meaning a 50c rise in a pack of 20 cigarettes.
Plus
  –  all cigarettes sold below €11 will have the same excise duty applied as cigarettes sold at €11. This will also take effect from midnight on 9 October 2018. (Confirmed from midnight 9th Oct 2018)

Betting duty raised from 15% to 25% for online and intermediaries . Also Raised from 1% to 2% for bookmakers .(confirmed from Jan 2019)

No increases to petrol or diesel – BUT  an extra 1% VRT surcharge is being brought in for diesel engine passenger vehicles registering from 1 January 2019. (confirmed)

Alcohol duty – no change (It has not been touched since 2014.)

 


Welfare and Pensions

All weekly welfare benefits and all state pensions are to be increased again by €5 a week for everyone .  Details here  (Confirmed from the end of March 2019).

The Qualified Child addition on all social welfare payments will rise by €2.20 a week for under 12s and by  €5.20 a week for 12 and over. (Confirmed)

The Christmas Bonus will go up to 100% (from  85%) (Confirmed)

Self-employed to become eligible for Jobseeker’s Benefit from December  2019

Fuel Allowance payment increased by a week to 28 weeks –  starting this year .(confirmed)

Back to School allowance will be increased by €25 per child in 2019  for all ages . (Confirmed)

One Parent Family Payment  and Jobseeker’s Transition Payment :-
Earnings disregard for Working Lone Parents increased by €20 to €150 per week (confirmed  from March 2019)

Working Family Payment : a new maintenance disregard of €95 per week in respect of housing costs, with the remainder to be assessed at 50% (confirmed)

Daily Expenses Allowance (formerly Direct Provision Allowance) to increase to €38.80 for adults and to €29.80 per week for children. (confirmed)

Prescription charges – cut by 50c  to €1.50 per item for medical card holders aged over 70. (Confirmed)

New Social Insurance Parental Benefit payment to be paid for 2 weeks for each parent –  (Confirmed to commence in November 2019)

Free GP Visit cards – income threshold to rise by €25 a week (confirmed)

Drugs Payment Scheme  – threshold reduced to €124 a month. (From April 2019 Confirmed)


The 2019 Budget  formally announced the upcoming increase of the minimum wage by 25 cent per hour, from €9.55 to €9.80. (Jan 2019)