The dawn of a new year usually brings with it some new changes to tax legislation, and this year is no different for those of us paying Irish taxes. With expectations that there would be limited room to manoeuvre, the 2018 Budget includes positives and negatives in equal measure.
From standard rate income, to home carer tax credit, here’s our simple overview of the changes in tax legislation for 2018 you need to keep an eye out for.
Standard Rate Income
The standard rate income tax band has been increased for all earners by €750. So now, single taxpayers become liable to pay income tax at the higher 40 per cent rate on earnings over €34,550 (up from €33,800). For married couples with one earning, the threshold is €43,550 (up from €42,800).
The Home Carer Tax Credit
The Home Carer Tax Credit, which can be claimed when one partner stays at home to look after a dependent person, has been increased by €100 a year from €1,100 to €1,200.
Universal Social Charge
More good news as incomes of €13,000 or less continue to be exempt from USC this year. Once your income is over this limit, you’ll pay the relevant rate of USC on all of your income as follows: €0 to €12,012 @ 0.5%, €12,012 to €19,372 @ 2%, €19,372 to €70,044 @ 4.75%, €70,044+ @ 8%.
What’s more, medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will now pay a maximum USC rate of 2%.
Get Your Money Back
It’s important to stay up – to – date with all tax changes at the start of the new year to make certain that you’re not paying more in tax than you should be.
We know it can often be difficult to discern which tax credits and reliefs apply to you, so if you’re still unsure about how to claim tax credits and you would like Irish Tax Rebates to claim tax credits on your behalf from the past four years, contact Irish Tax Rebates today.
Our friendly team of tax experts will be more than happy to help. We have the highest average tax rebate in Ireland and the lowest fee; and if you aren’t owed any tax back, there is no fee applied. To get the ball rolling, you can apply for your tax back online today.