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.

    Paycheck Plus, Your Payroll Outsourcing Partner

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    Topics: Budget 2020