Income tax changes

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the standard rate will mean an extra €300 per annum for a higher rate of tax payer. Will the tax credits (income and personal) each going up by €50 mean that the higher tax rate payer is better off next year to the tune of €400 per annum???
 
Don't PAYE workers get the personal tax credit (€50 increase) and the employee tax credit (€50 increase). Plus approximately €12 less to pay in USC. So altogether, a €412 increase in nett pay as a result in 2022?

Better than a kick in the nuts off Bobby Charlton I suppose.
 
Firefly said:
I think it's too high. In my house that means we'll be up nearly 70 euro a month. I can't see the cost of living rising that much....
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It is not the job of tax to make up for cost of living rises, albeit they should be taken into account when adapting the bands.
This is what a (hopefully regular/yearly) pay increase of at least inflation rate should do.

I think the taxes are too high for mid level incomes, and I am very happy that they are being adjusted a bit.
 
At least they didn't penalize higher earners for working hard and any addition is welcome.
 
Firefly said:
I think it's too high. In my house that means we'll be up nearly 70 euro a month. I can't see the cost of living rising that much....
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I can and be double that. The figures today said 3.7% by next September ...the reality is itll be double that in what's not in the "inflation basket " like building costs, and every other essential.

€70, a month some income dude
 
bish123 said:
At least they didn't penalize higher earners for working hard and any addition is welcome.
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If you are self employed and earn over €100,000, there is a 3% USC surcharge, meaning you pay 55% in tax. That's pretty high already. A lot of professions can't incorporate to avoid this by being under the PAYE system.

It is grossly unfair when you can be an employee for a multi national and have all the job security of a multi national and not create any employment yourself and pay less tax on a similar salary/ earnings.


Steven
www.bluewaterfp.ie
 
Steven Barrett said:
If you are self employed and earn over €100,000, there is a 3% USC surcharge, meaning you pay 55% in tax. That's pretty high already. A lot of professions can't incorporate to avoid this by being under the PAYE system.

It is grossly unfair when you can be an employee for a multi national and have all the job security of a multi national and not create any employment yourself and pay less tax on a similar salary/ earnings.


Steven
www.bluewaterfp.ie
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That does seem unfair and unproductive - do you know what the reasoning/motive for that tax approach is?
 
bish123 said:
At least they didn't penalize higher earners for working hard and any addition is welcome.
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Mortgage interest rates and marginal tax rates are the only thing that really matter to me. The rest is window dressing.
Interest rates are as low as can be expected but the marginal tax rate should never be more than 50%. (PAYE, PRSI and USC are all just taxes).
I also think they should re-name USC as it's not a universal charge.
 
arbitron said:
That does seem unfair and unproductive - do you know what the reasoning/motive for that tax approach is?
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The Revenue have a longstanding mistrust of the self employed in that they can put things through as expenses that an employee couldn't. But in saying that, company directors can do that too but they aren't hit by this tax. Probably because they can keep their income at €99,999 and put even more through as expenses. Sole traders aren't able to limit the amount of money they take as income.


Steven
www.bluewaterfp.ie
 
Steven Barrett said:
The Revenue have a longstanding mistrust of the self employed in that they can put things through as expenses that an employee couldn't. But in saying that, company directors can do that too but they aren't hit by this tax. Probably because they can keep their income at €99,999 and put even more through as expenses. Sole traders aren't able to limit the amount of money they take as income.


Steven
www.bluewaterfp.ie
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I think Revenue would take a hard look at any company director earning €99,999 a year.
Expenses are also examined closely by Revenue.
Are you saying that Sole Traders can't leave working capital in their businesses? (I really know nothing about sole traders)
 
Purple said:
I think Revenue would take a hard look at any company director earning €99,999 a year.
Expenses are also examined closely by Revenue.
Are you saying that Sole Traders can't leave working capital in their businesses? (I really know nothing about sole traders)
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All of their net relevant earnings are taxed as income each year. A director can decide what he takes out as income and leave the rest in the company account and not subject to income tax. A sole trader can't do that. They have to pay income tax on it.
 
Steven Barrett said:
All of their net relevant earnings are taxed as income each year. A director can decide what he takes out as income and leave the rest in the company account and not subject to income tax. A sole trader can't do that. They have to pay income tax on it.
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So how does a sole trader maintain working capital?
 
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