Taxation & Workers

Tax Credits and Rate Bands

• Standard Rate Cut-Off Point (SRCOP) increased by €2,000 per person to €42,000 for a single person
• €100 increase per person for Personal, PAYE and Earned Income Credits
• €100 increase for Home Carer Tax Credit and Single Person Child Carer Credit
• €200 increase for Incapacitated Child Tax Credit.

Universal Social Charge (USC)

• Existing rate of USC dropping from 4.5% to 4%
• The entry threshold to the USC 4% rate will increase from €22,920 to €25,760.

Pay Related Social Insurance (PRSI)

• 0.1% increase in PRSI charge across all contribution rates.

Minimum Wage

• Increasing by €1.40 per hour to €12.70, effective from 1st January 2024.

Housing

Rental

• Increase of Rent Tax Credit by €250 from €500 to €750
• Extension of scheme to include students in ‘rent-a-room’ or ‘digs’ type arrangements. These will be backdated to allow for 2022 and 2023 claims.

Help-to-Buy (HTB) Scheme

• Help-to-Buy Scheme is extending to the end of 2025. Extension of scheme will include those availing of Local Authority Affordable Purchase Scheme.

Mortgage Interest

• One-year Mortgage Interest Tax relief for homeowners with a mortgage balance of between €80,000 and €500,000 on their primary dwelling as of 31st December 2022
• Relief will be 20% of the increase in mortgage interest paid in 2022 vs 2023, and is capped at €1,250.

Landlords – Rental Income

The threshold level for Rental Income Relief at the standard rate (20%) will be as follows:

Year      Threshold

• 2024 -   €3,000
• 2025 -   €4,000
• 2026 -   €5,000
• 2027 -   €5,000

If the property is withdrawn from the rental market, a clawback will apply.

Energy

• Three energy credits of €150 each will be paid to households between the end of 2023 and April 2024
• 9% Vat rate for Gas & Electricity will be extended for another 12 months.

Social Welfare

• A €300 lump sum payment for Fuel Allowance recipients will be paid before Christmas 2023
• Additional €200 to be paid for those in receipt of Living Alone Allowance
• €400 once-off payment for those in receipt of Carer’s Support Grant, Disability Allowance, Blind Welfare Allowance, Invalidity Pension and Domiciliary Care Allowance.
• €400 once-off payment for those in receipt of Working Family Payment and an increase of €54 per week in the qualifying income threshold
• Christmas bonuses will be paid in early December
• Once-off double week “Cost of Living Support” payments will be paid to all qualifying social welfare recipients
• Child Payment - An additional €140 per child will be made to qualifying households before Christmas
• Double payment of Foster Care Allowance to be made this year.
• €12 weekly increase for Social Welfare Payments, including pensions.

Education

• A once-off reduction of 33% in the contribution fee for Apprenticeships in higher education
• €1,000 once-off reduction in student contribution fee for college students
• Free Schoolbooks Scheme extended to Junior Cycle Students.

Child Benefit

• €4 increase per week for Qualified Child to €46 per week for Under 12s and €54 per week for Over 12s
• Monthly Domiciliary Care Allowance to increase by €10
• Child Benefit payment to be extended to 18-year-olds in full time education
• National Childcare Scheme hourly subsidy increased from €1.40 to €2.14 effective from September 2024, childcare costs to reduce by 25%
• Statutory Foster Care Allowance to increase by €75 per week by the end of 2024 for children under 12, and €73 per week for children over 12.

Public Sector Employment

• 1,200 additional SNAs & 740 Special Education Teachers
• 1,000 additional Gardaí and 250 Civilian GardaÍ
• 400 additional Military Personnel

VAT

• Increase in VAT Registration thresholds for businesses from €35,000 to €40,000 for service only businesses, and €75,000 to €80,000 for goods and services providers.

Excise Duty

• Cigarettes duty increased by 75c per pack of 20
• Vaping and E-cigarettes to be reviewed and addressed in 2025 budget.

Transport

• Extension of Young Adult and Student Card to cover adults aged 19-25.

Please note: There may be further changes to the above information following the Finance Bill. Every effort has been made to ensure that the information provided here is accurate and up to date (as of 10th October 2023). The information provided is of a general nature and may not address the specific circumstances of a particular individual. Cornmarket does not accept any liability arising from any errors or omissions.