Recent changes to VAT & Employer's PRSI

[PDCAT]

Hi Folks

I am just looking for some help with two recent changes made by the government in relation to Vat & Employers PRSI.
My wife owns a small business and i do her book keeping for her. Just have couple of questions, if someone could help me out.

VAT

Vat rate has been reduced from 13.5% to 9.5% i believe in recent changes. This has been reduced only for certain business (tourism related).
I know hairdressing has recieved this reduction. My wife's business is Beauty Salon. Does anyone know, if she is entitled to this reduction. i have checked the revenue webpage and can't find any info on this. Also does this change occur in July.

Employers' PRSI

Are all employer's entitled to this. My wife has one girl working three days a week which she pays 8.5% employers prsi. Am i right in saying that from first week of July, she will only have to pay 4.25% (reduction of 50%).
Thanks for your help everyone.

 

[kennyb3]

The reduced Vat rate is 9% not 9.5%, and only applies to very specific areas - beauty salons not being one of them.

On the prsi one - as long as she earns less than €356 per week yes it will be halved.

This may help you

[broken link removed]

 

[PDCAT]

The reduced Vat rate is 9% not 9.5%, and only applies to very specific areas - beauty salons not being one of them.

On the prsi one - as long as she earns less than €356 per week yes it will be halved.

This may help you



Thanks Kennyb3 for the information above.

Looks like, she's not entitled to the Vat change (remains at 13.5%) and she is entitled to the reduction in employers prsi as employee earns less then 356 per week.

Thanks Again.