The 2021 Irish Budget was announced yesterday, the 13th October 2020, by Finance Minister Paschal Donohue. The first budget of the three-party coalition government, which was drafted in the midst of great uncertainty.
With Covid-19 and Brexit rightly dominating this year’s Budget, the focus was on ‘Building a Stronger Ireland’ and sustaining Irish Business for the next 12-24 months.
So how will this affect your business? Key take-aways include:
- No change to personal tax credits for employees or the standard rate band entry level into the higher rate of income tax, due to a focus on saving jobs and protecting lives.
- Increase in tax credits for small business owners and self-employed people from €1,500 to €1,650.
- Increase in the ceiling for the second USC rate from €20,484 to €20,687.
- Reduction in the VAT rate for the Hospitality and Tourism Sector from 13.5% to 9%, with effect from the 1 November 2020.
- A small increase in the farmers flat rate addition to 5.6% from 1 January 2021.
- No change to the 12.5% rate of Corporation Tax.
- Stamp Duty consanguinity relief extended for another 3 years, reducing Stamp Duty on land transfers between family members to 1%.
If you have any questions about this year’s Budget or require assistance, our Tax Team are here to help.
You can email Caroline Murphy directly at the address below or Contact us today to speak to a member of our team.