Budget 2020 Highlights

    Yesterday was the release of Budget 2020. Here are the main highlights that relate to your payroll in the coming months.

    • Minimum wage is to rise by 30 cent from €9.80 to €10.10. This has been delayed until March in the event of a no-deal Brexit.
    • The earned income tax credit for self employed will increase by €150 going from €1350 to €1500.
    • The BIK zero rate on electric cars has been extended to 2022.
    • Tax, SRCOP and USC rates all remain the same
    • Special Assignee Relief Programme and Foreign Earnings Deduction has been extended until 31st of December 2022. All qualifying conditions remain the same.

    Other notable highlights

    • Dividend Withholding Tax will increase by 5%, rising from 20% to 25% from the 1st of January 2020. 
    • Help to Buy Scheme has been extended for another 2 years until December 2021
    • €1 billion will be allocated to the Department of Business which will allow the department and enterprise agencies support more businesses.
    • €74  million will be invested in 2020 into the National Training Fund enabling re-skilling and lifelong learning with a focus on responding to the impact of Brexit.

    Understandably this years Budget had a large focus on Brexit, its impact and measures being put into place to tackle the fall out of a no-deal Brexit. In the event of a no-deal:

    • €650 million will be allocated for agriculture, enterprise and tourism
    • €85 million will be allocated to beef farmers
    • €14 million for fishing industry
    • €6 million for livestock and mushroom industry
    • €5 million for food and drinks processing
    • €40 million to be provided to the tourism industry

    There was also a big focus on reducing CO2 emission and our carbon footprint

    • Capital allowances can be claimed on company vehicles depending on the CO2 emissions
    • VAT can be reclaimed on company vehicles subject to CO2 emissions
    • A carbon tax will apply to petrol, diesel, coal, gas and peat increasing by €6 to €26 per tonne. This translates to about a 2 cent per litre increase on petrol and diesel. The increase for home heating fuels will not apply until May 2020.

    For more information on Budget 2020 can be found here.

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    Topics: Budget 2020

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