1 / 13

Cork Airport Business Park Cork

Budget 2011 Kieran Coughlan Tax Manager. 28 Merrion Square, Dublin 2. Cork Airport Business Park Cork. Budget 2011 Expenditure Cuts. Expenditure Cuts – Headline Issues Education Higher Education – student contribution to be increased by €250

jalia
Download Presentation

Cork Airport Business Park Cork

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Budget 2011 Kieran Coughlan Tax Manager 28 Merrion Square, Dublin 2 Cork Airport Business Park Cork

  2. Budget 2011Expenditure Cuts Expenditure Cuts – Headline Issues Education • Higher Education – student contribution to be increased by €250 • Grants for post graduate courses to be withdrawn • Contribution for school bus to increase from €50 to €100 • Introduction of capital asset test for student grants from 2013 Health issues • Monthly personal contribution for drugs increased from €120 to €132 • Contribution by private health insurers to increase, health insurance costs likely to increase as a result CXC the Professionals for Contractor Services

  3. Budget 2011Expenditure Cuts Company Issues • Rebate for redundancy be reduced 60% to 15% Social Welfare • Child benefit amounts to be standardised for all children over next two years, in 2012 payments to third and fourth children to be reduced by €19 & €17 per month • Jobseekers benefit will be based on 5 day week rather than 6 day week – negative effect for those taking up part time employment • Fuel allowance reduced from 32 weeks to 26 weeks • Personal contributions towards rent supplement to be increased • Back to school clothing and foot-ware allowance to be reduced CXC the Professionals for Contractor Services

  4. Budget 2011Expenditure Cuts Social Welfare • One parent family payments to be phased out where youngest child reaches the age of 7 (after 2014) • Reform of child benefit, statutory sick pay and consolidation of means tested schemes still on the agenda. • Reduction in rates of State Pension flagged from September 2012 where full social insurance record not in place. • Reduction in mortgage interest supplement • Withdrawal of disability benefit in cases where disability less than 15% • Reduction in disability benefit down to jobseekers benefit levels CXC the Professionals for Contractor Services

  5. Effect of expenditure cuts on RECRUITMENT Mixed messages • Harder for those getting back to part time employment • Very minor changes for those who choose social welfare “as a lifestyle choice” • Changes to redundancy rebate likely to bring forward some redundancies • Employers more likely to want contract/contractor employees • Cost of Agencies keeping staff for more than 2 years increased by €540 per year! CXC the Professionals for Contractor Services

  6. Tax Changes for employees Positives + • No change to income tax, PRSI • Low earners will be exempted from USC (below €10,036) • No change to tax deductibility of pensions • Increase in mortgage interest relief for first time buyers who bought in the period 2004 to 2008 • Incentive for those to buy between now and end of 2012 CXC the Professionals for Contractor Services

  7. Tax Changes for employees Negatives - • Increase in VAT on “luxury goods” from 21% to 23% • Household charge of €100 to be paid by 31 March 2012 • Increase in motor tax • Increase in carbon tax (fuel and heating) • Increase in Cigarettes 25c • Withdrawal of exemption from tax for first 6 weeks of Illness benefit CXC the Professionals for Contractor Services

  8. Tax Changes for companies Positives + • Reaffirming of Corporation Tax at 12.5% • “Assignee” relief to be introduced • Exemption from corporation tax for start up companies extended for another 3 years (only applies to trading companies) • Blanket R&D tax credit available where expenditure less than €100,000 • Micro finance loan guarantee for new startups Negatives – • Reduction in employers PRSI relief for employee pension contributions • Rebate for redundancy reduced from 60% to 15% CXC the Professionals for Contractor Services

  9. Tax changes for property investors Positives + • No change to tax deductibility of mortgage interest • Section 23 type allowances to be phased out in 2014/2015, no changes for most investors in 2012 or 2013 • Capital Gains Tax exemption for investing between now and end of 2013 if asset held for 7 years • Stamp duty on purchase of commercial property now down to 2% from 6% Negatives - • Surcharge of 5% for those with rents over €100,000 using Section 23 type relief CXC the Professionals for Contractor Services

  10. Tax changes on wealth Negatives - • Capital Gains Tax increased to 30% from 25% • Gift/Inheritance Tax increased to 30% from 25% • Lifetime tax free limit for transfers from parent to child reduced to €250,000 • Increase in DIRT from 27% to 30% • 30% tax on passing of remainder of pension on death to child (up from 20%) CXC the Professionals for Contractor Services

  11. Effect of tax changes on RECRUITMENT • No significant changes to takehome pay for you or your clients • New “Special Assignee Relief Programme” to extend tax break to highly skilled persons relocating to Ireland • “Foreign Earnings Deduction” for persons sent on temporary assignment to BRIC countries • Benefits on contracting remain as good as they have always been CXC the Professionals for Contractor Services

  12. About CXC • Offices throughout the World in over 15 countries • Market Leaders for Accounting Services to Contractors • Established in Ireland since 2001 • Over 2500 Contractors in Ireland and abroad • Managed by Professional Accountants • Staff of over 35 Professionals to assist you

  13. “Alone we do so little, together we can do so much” ( Helen Keller ) CXC the Professionals for Contractor Services

More Related