Budget 2016 News
Opening his speech, Mr Noonan said recent budgets were difficult but had helped the State to exit its EU-IMF bailout. He said he now hoped to take advantage of economic growth and give something back to the public.
By far the biggest gains for most relate to the change in the universal social charge (USC). This means that, overall, the Budget calculations are reasonably straightforward for most taxpayers, though they are a bit more complicated for lower earners, where a proposed increase in the minimum wage and a tweak in the PRSI regime complicated things a bit.
The other key group to benefit more than the average is the self-employed. The Minister has announced a tax credit of €550 which goes straight to the bottom line for taxpayers in this group. This is the start of a process of giving the self-employed equal treatment in relation to a €1,650 tax credit previously granted only to PAYE taxpayers.
Gains for a single self-employed person range from €700 on an income of €20,000 to €1,452 on an income of €70,000 or more. This is basically the €500 credit added to the benefit from the USC change.
We endeavour to summarise the budget implications pertaining to payroll for employers and employees.
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