FLC FRANK LYNCH & CO REVIEW
Budget 2023 was announced on Tuesday 27th September 2022. It has been termed the ‘Cost of Living’ Budget and we have outlined the key measures below.
COST OF LIVING SUPPORTS
- Small and medium sized businesses will receive up to €10,000 a month to assist with energy bills
- Each household will receive €600 in electricity credits in three payments of €200 each across the next three billing periods. The first payment is due before Christmas
- Not-for-profit organisations will get €60 million this year for energy costs, while section 39 agencies like nursing homes and hospices will get €110 million
- Excise cuts on petrol, marked gas oil and diesel, and the VAT rate on electricity and gas extended until February 2023
- €12 increase in for pensioners and Weekly Social Welfare Rate
- Parents are set to receive a double payment of the monthly Child Benefit
- Increase in current higher tax band to €40,000 which will give back on average €830 per annum to middle income earners
- There is a €75 tax credit increase for the Personal Tax Credit, Employee Tax Credit and Earned Income Tax Credit, meaning these tax credits will be worth €1,775 in 2023.
- The second USC rate band (2% rate) will increase from €21,295 to €22,920
- Under the Small Benefit Exemption, the annual limit on vouchers that employers can give their staff is rising from €500 to €1,000. In addition, two vouchers can be given under the exemption in this tax year
- Five farming tax reliefs will be extended including Young Trained Farmer Stamp Duty Relief, Farm Consolidation Stamp Duty Relief, Farm Restructuring Capital Gains Tax Relief, Young Trained Farmer Stock Relief and Registered Farm Partnership Stock Relief
- There will also be extra funding for TAMS, forestry, and organics, as well as the new and enhanced suckler and sheep supports.
- The 9% VAT rate for tourism & hospitality and electricity & gas is extended until 28 February 2023
- Newspapers will be zero – rated VAT from 1 January, which also applies to digital editions
- Help to Buy Scheme is extended for a further two years
- €1,000 tax credit for those renting in 2022 and 2023, payable in two separate credits
- Vacant property tax to be applied to residential properties occupied for less than 30 days in a 12-month period
- The amount landlords can claim in pre letting expenses per unit is being doubled to €10,000
- From April 2023, a 10% level will be applied on concrete blocks, pouring concrete along with other concrete products
- Free GP care will be extended to more than 400,000 including all six- and seven-year-olds to gain access by the end of 2022
- All charges for public hospital inpatients to be removed
CHILDREN & STUDENTS
- From January 2023, childcare fees will be reduced by 25%
- Free schoolbooks for all students at primary school level from autumn 2023
- Reduced college fees by €1,000 for all students and a double SUSI grant payment this winter
- 20% fare reduction on public transport continued to the end of 2023
TAX CREDITS FOR THE TAX YEAR 2023
|Single||1,775||1,700||Incapacitated Child Credit||3,300||3,300|
|Widowed||2,315||224||Blind Person (Single/Married)||1,650||1,650|
|Single Person Child Carer||1,650||1,650||Blind Person (married both blind)||3,300||3,300|
|Home Carer Credit||1,700||1,600||Age Credit (Single/Widowed)||245||245|
|PAYE||1,775||1,700||Age Credit (Married)||490||490|
|Earned Income Credit*||1,775||1,700||Fisher Tax Credit||1,270||1,270|
* Earned Income Credit will not apply where an individual is entitled to a PAYE credit.
INCOME TAX RATES – 2023
|Single Persons||Married Persons (two incomes)|
|20% First €40,000||20% First €80,000*|
|40% Balance||40% Balance|
|Lone Parent||Married (one income)|
|20% First €44,000||20% First €49,000|
|40% Balance||40% Balance|
*This is transferable between spouses up to a maximum of €49,000 for any one spouse.
If you would like to discuss this further with our team, please give us a call on 042 9332273 or email firstname.lastname@example.org.
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