We are experts in Public Sector finance and that’s why we have put together this Guide to Budget 2024, focusing on what it means for Public Sector employees & their families.
The key points are:
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.
- Increasing by €1.40 per hour to €12.70, effective from 1st January 2024.
- 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.
- 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:
- 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If the property is withdrawn from the rental market, a clawback will apply.
- 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.