Opinion Who will be most disappointed with Budget 2018? The self-employed and residential landlords

Discussion in 'Budget 2019' started by Sarenco, 10 Oct 2017.

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  1. Sarenco

    Sarenco Frequent Poster

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    The Earned Income Credit raised by a measly €200 (bringing it to €1,150 from next year - substantially below the PAYE credit of €1,650) and the 3% USC surcharge remains.

    No moves on the deductibility of LPT or mortgage interest for landlords. Expect a continued exodus of landlords from the market and ever increasing rents for tenants.
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    I am very disappointed. I called for social welfare to be reduced and, not only did he not reduce the payments, he increased them by €5.

    Despite the booming economy, he is planning for a budget deficit next year. That really is outrageous.

    Brendan
     
  3. TC2015

    TC2015 Registered User

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    Some on €18,000 p.a. getting €30 per year net whilst someone on job seekers benefit getting €5/week. Would sicken me if i was in that group of low earners.
     
  4. JoeRoberts

    JoeRoberts Frequent Poster

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    And no increase in interest allowable for rental properties despite last years promise to gradually restore it to 100% by 2021.
     
  5. Sarenco

    Sarenco Frequent Poster

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    I'm pretty sure that phased restoration was reflected in last year's Finance Act but there was an expectation in some quarters that this would be escalated.
     
  6. p walsh

    p walsh Registered User

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    As a landlord, what is the current % of mortgage interest i can deduct?

    will the Budget today affect me with as a landlord with the phasing out from 75% to 50% to 25%?

    (sorry for my simplicity)
     
  7. JoeRoberts

    JoeRoberts Frequent Poster

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    Yes, 80% was announced for 2017.
    So we reasonably expected

    85% 2018
    90% 2019
    95% 2020
    100% 2021
     
  8. Sarenco

    Sarenco Frequent Poster

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  9. JoeRoberts

    JoeRoberts Frequent Poster

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  10. Delboy

    Delboy Frequent Poster

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    Falling unemployment as we approach near full employment...what do you do, increase the dole.
    Counter cyclical economics, Irish style!
     
  11. SBarrett

    SBarrett Frequent Poster

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    I can't understand that surcharge. If you take the risk to run your own business and do well, you should be rewarded, not penalised. But if I work in a large company with a secure job, I pay less tax than someone with no guarantees or job security.

    I always look at the earned income benefit as better than nothing. It wasn't that long ago that there was no allowance. They aren't going to increase it by €700 in one year.

    Steven
    www.bluewaterfp.ie
     
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  12. Firefly

    Firefly Frequent Poster

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    But self-employed people, all of them, are making a fortune and can well afford to pay this :rolleyes:
     
  13. orka

    orka Frequent Poster

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    I presume it's to make up for the government not receiving employers PRSI on a self-employed person's earnings? If a business has €30,000 available for 'pay' for a person, an employed person will get a salary of 27K with 3K going to the government in employers PRSI. The additional tax and USC on the self-employed person's 30K salary does not compensate for the loss of the employers PRSI. Self-employed people are entitled to fewer benefits but they are entitled to those that make up the bulk of PRSI spending (primarily pensions).
     
  14. Sarenco

    Sarenco Frequent Poster

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    Bear in mind that many (if not most) self-employed taxpayers also pay employers' PRSI in respect of their employees.

    In any event, there is no connection between the 3% USC surcharge imposed on self-employed income above €100k and PRSI.
     
  15. galway_blow_in

    galway_blow_in Frequent Poster

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    the large increase in stamp duty on commercial property is noteworthy , trebled

    farmers wont be happy at all to name one group
     
  16. Frank

    Frank Frequent Poster

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    will the sugar tax be ring fenced for obesity?
     
  17. RedOnion

    RedOnion Frequent Poster

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    The self employed (who can) should be all busy trying to work out which electric car to lease for themselves next year...
     
  18. Duke of Marmalade

    Duke of Marmalade Frequent Poster

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    This is the most neutral budget I have ever known. Does it show that "confidence and supply" democracy is completely emasculated?
     
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  19. gnf_ireland

    gnf_ireland Frequent Poster

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    And the main one they don't have access to is the safety net (i.e. dole)
    Agree though, they would need to pay more into the pot to be able to qualify for this..
     
  20. gnf_ireland

    gnf_ireland Frequent Poster

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    surely the point is that the sugar tax will take in marginal amount of revenue, as its purpose is to change behaviour (of either drinks manufacturers and/or consumers)
     
    tallpaul likes this.
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