It’s that time again, the dreaded 2018 Irish Budget has been announced. No need to fear though, it’s not all doom and gloom!
If you are thinking about first time contracting or have been doing it for years, 2018 is looking up for you. The Irish economy has changed vastly since the early 2000’s and people are more open to the idea of being contractors or self-employed.
The 2018 Irish budget has brought contractors and self-employed individuals closer in line with their PAYE counterparts.
With the incentive of an extra €200 in your back pocket, why not start thinking about how you’re going to spend yours…
Have a look at the new Irish 2018 Budget breakdown to see how it will benefit you:
Tax and USC
Income tax
Firstly
- The self-employed and contractors will pay €200 less a year in tax from 2018, following the Government’s decision to extend the earned-income tax credit from €950 to €1,150.
Secondly
- The standard rate income tax band for all earners is increasing by €750.
- €33,800 to €34,550 for single individual
- €42,800 to €43,550 for married one earner couples.
Universal Social Charge (USC)
The 2.5% rate of USC has been reduced to 2% and the ceiling for this rate has increased. The 5% rate of USC has also been reduced to 4.75%. Incomes of €13,000 or less will continue to be exempt from USC in 2018. Once your income is over this limit, you will pay the relevant rate of USC on all of your income as follows:
- €0 to €12,012 @ 5%
- €12,012 to €19,372 @ 2%
- €19,372 to €70,044 @ 75%
- €70,044+ @ 8%
Minimum wage increased by 3.24% to €9.55 for experienced adult workers.
Wish to learn more?
If you have any questions or queries regarding your 2017 / 2018 payroll or any other matters regarding working or employing in Ireland please contact our sales team on +44 (0) 208 5 800 800
Or visit our website https://tcpsolutions.com/ and perhaps in specific our Ireland pages https://tcpsolutions.com/countries/ireland/
