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News

  • Budget 2023 leaves most people better off with more tax cuts than we've seen in years.  Perhaps not enough to counter inflation!
  • From 2022 employers can give staff non-cash bonuses of up to €1,000.  Previously it was limited to €500.
  • A rent tax credit of €500 can be claimed by those renting the homes they live in.  It applies from 2022. 
  • The government is considering introducing a third rate of income tax (30%) to ease the burden for middle-income groups.
  • Personal Tax Credits reached €1,700 for a single person in 2022, having been cut from €1,830 after the 2008 Global Downturn.  Ordinary workers are paying for the mistakes of the past, while our purchasing power is eroded by inflation.
  • European Central Bank increases interest rates by 0.5% which is expected to raise bank interest rates, including homeloans.
  • First Home Scheme launched by Government to help first-time-buyers bridge the gap if they cannot raise a big enough mortgage.
  • 90% of people over 65 own their home.  Only 65% of 35-44 year-olds can expect the same, and one-in-two 25-34 year-olds.
  • The 2023 Cost of Living Budget will provide a modicum of relief to increase tax credits and tax bands.
  • Average Mortgage interest rate is about 3%.  Monthly repayments on €100,000 over 25 years would be €474.  If interest rates rise to 4%, repayments become €528.  Time to consider the options!
  • Interest rates are rising globally due to increasing financial pressures.
  • Irish inflation has reached 9.6% (July 2022).  A little inflation (just under 2%) is good.  9.6% is a cause for concern!
  • A New Living Wage (€12.17p.h.) is due to replace the National Minimum Wage (€10.50) by 2026, being phased in from 2023.
  • New Workplace Pension Scheme should be in place by 2024, funded by employees and their employers.

Top Tips

  • Employers can give tax-free vouches, up to €1,000 in a year, to employees.  It can be split over no more than two payments. 
  • Use the Bike to Work Scheme to buy a tax free bike.  If the employer buys the bike, there is no BIK. Or you can choose salary sacrifice and get the tax back.  For peddle bikes get up to €1,250; for e-bikes it is up to €1,500, without tax.
  • PAYE workers, with investment income, are subject to interest and penalties if they don't make arrangements to pay the extra tax.
  • Tax on small investment income can be paid by reducing PAYE credits, if agreed with the Revenue Commissioners.
  • You get four years to claim back tax; don’t wait until it is too late.
  • Top up your pension fund by October and you can claim back tax for the previous year.
  • Pension funding is one of the most tax-efficient ways to save.
  • An employer's contribution to a pension fund is exempt from PRSI.
  • Small gifts (up to €3,000 annually, from any donor) are tax-free.
  • Employee expenses may be exempt from income tax.  Know the rules!
  • Employers can pay tax-free lump sums to employees on retirement/termination of employment.  
  • Get tax relief @ 20% on health expenses for you and your dependents.  This includes visits to GPs and prescription medicines.
  • Capital Gains Tax is usually paid by 15th December, in the year in which the sale takes place.  Otherwise interest charges may apply.
  • Retirement lump sums, up to €200,000, are exempt from income tax under certain circumstances.