Budget 2019 Highlights
Budget 2019 for Businesses
Corporation Tax: the corporation tax rate will remain at 12.5%.
VAT: the VAT rate for tourism and hospitality sector will increase from 9% to 13.5%. There will be no change to VAT for newspapers and sporting facilities, although VAT on electronic publications will be reduced from 23% to 9%.
National Training Fund Levy: the National Training Fund Levy is set to increase from 0.8% to 0.9% in 2019.
Start-Up Companies: Tax reliefs will be extended for certain start-up companies until the end of 2021.
Earned Income Tax Credit (EITC): The EITC for self-employed workers will increase by €200, from €1,150 to €1,350.
Budget 2019 for Employees
Tax Rates: the 20% standard tax rate and 40% higher tax rate remain unchanged.
Standard Rate Cut Off Point (SRCOP): the SRCOP will increase by €750 from €34,550 to €35,300 for a single individual and €43,550 to €44,300 for a married couple with one earner.
Universal Social Charge (USC): the USC exemption threshold of €13,000 will remain unchanged. The middle USC point will increase by €502 from €19,372 to €19,874. Also, the middle rate of USC paid on income will decrease from 4.75% to 4.5%. The surcharge rate of 3% for non-PAYE income over €100,000 will remain unchanged.
PRSI: the weekly threshold for the higher rate of employer’s PRSI will increase from €376 to €386.
National Minimum Wage: the national minimum wage will increase on January 1st 2019 to €9.80 for an experienced adult worker.
Budget 2019 Miscellaneous
Excise Duty: excise duty on alcohol, diesel and petrol will remain unchanged, however a pack of 20 cigarettes will be 50 cent more expensive from midnight on 9th October 2018 with other tobacco products being increased proportionally.
Social Welfare: weekly social welfare payments will increase by €5 from March 2019. The Christmas bonus for those receiving social welfare has been fully restored. The rate for a qualified child payment to parents on social welfare will increase by €2.20 per week for under 12s and €5.20 per week for over 12s. There will be an additional two weeks parental leave to every parent of a child under one year from November 2019, to increase to seven weeks over a number of years. The back-to-school clothing and footwear allowance will increase by €25.
Home Carer Tax Credit: this will increase by €300 from €1,200 to €1,500.
Paycheck Plus Payroll Compliance
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