The tables below outline the position for 2010.
|
Tax Credits Tax Credit |
2010 € |
2011 € |
|
Single Person |
1,830 |
1,650 |
|
Married Person |
3,660 |
3,300 |
|
PAYE Credit |
1,830 |
1,650 |
|
Widowed Person (without dependant children) |
2,430 |
2,190 |
|
One Parent Family Credit |
1,830 |
1,650 |
|
Incapacitated Child Credit Max |
3,660 |
3,300 |
|
Blind Tax Credit Single Person One Spouse Blind Both Spouses Blind |
1,830 1,830 3,660 |
1,650 1,650 3,300 |
|
Widowed Parent Bereaved in 2010 2009 2008 2007 2006 2005 |
- 4,000 3,500 3,000 2,500 2,000 |
3,600 3,150 2,700 2,250 1,800 - |
|
Age Tax Credit Single/Widowed Married |
325 650 |
245 490 |
|
Dependent Relative |
80 |
70 |
|
Home Carer |
900 |
810 |
Marginal Rate Reliefs
|
Relief (Allowed at the taxpayer’s top rate of tax) |
2010 € Max |
2011 € Max |
|
Employing a Carer |
50,000 |
No change |
Standard Rated Reliefs
(Allowed at 20% rate band)
Trade Union Subscriptions
Relief for trade union subscriptions paid is being abolished for 2011 and subsequent years.
Service Charges
Relief on service charges remains unchanged. A maximum of €400 tax relief is granted (at 20% tax rate) in 2011 for service charges paid in the year 2010. This relief is being abolished for tax year 2010 and subsequent years.
|
Relief at 20% Tax Rate |
Allowed in the Year |
For Service Charges Paid in the Year |
|
€400 €400 Nil |
2010 2011 2012 |
2009 2010 2011 |
Rent Tax Relief
Relief for rent credit will be withdrawn on a phased basis over the next 7 years by reducing the amount of rent that can be relieved at the standard rate of income tax as indicated in the following table.
|
Tax Year |
Single Under 55 |
Single Over 55 |
Widowed/ Married under 55 |
Widowed/ Married over 55 |
|
2010 |
2,000 |
4,000 |
4,000 |
8,000 |
|
2011 |
1,600 |
3,200 |
3,200 |
6,400 |
|
2012 |
1,200 |
2,400 |
2,400 |
4,800 |
|
2013 |
1,000 |
2,000 |
2,000 |
3,600 |
|
2014 |
800 |
1,600 |
1,600 |
3,200 |
|
2015 |
600 |
1,200 |
1,200 |
2,400 |
|
2016 |
400 |
800 |
800 |
1,600 |
|
2017 |
200 |
400 |
400 |
800 |
|
2018 |
0 |
0 |
0 |
0 |
Claimants who were not renting at 7 December 2010 and who subsequently enter into a rental agreement will not be able to claim relief.
2.12 Tax Rates and Tax Bands
The tax rates remain unchanged at 20% (standard rate) and 41% (higher rate).
The table below sets out the tax rates and bands.
|
Personal Circumstances |
2010 € |
2011 € |
| Single/Widowed without dependant children |
36,400 @ 20% Balance @ 41% |
32,800 @ 20% Balance @ 41% |
| Single/Widowed qualifying for One Parent Family Tax Credit |
40,400 @ 20% Balance @ 41% |
36,800 @ 20% Balance @ 41% |
| Married Couple one spouse with Income |
45,400 @ 20% Balance @ 41% |
41,800 @ 20% Balance @ 41% |
| Married Couple both spouses with Income |
45,400 @ 20% with increase of 27,400 max. Balance @ 41% |
41,800 @ 20% with increase of 23,800 max. Balance @ 41% |
Exemption Limits
There is no change to the exemption limits for persons aged 65 years and over:
|
Personal Circumstances |
2010 € |
2011 € |
| Single/Widowed 65 years of age & over |
20,000 |
18,000 |
| Married Couple 65 years of age & over |
40,000 |
36,000 |
Marginal Relief may apply, subject to an income limit of twice the relevant exemption limit.
The above exemption limits are increased by €575 for each of the first two dependent children and by €830 for the third and subsequent children.
Tax Relief at Source - Mortgage Interest Relief
The measures announced in Budget 2010 are unchanged:
Qualifying loans taken out before 1 July 2011 will continue to get relief for 7 years. Transitional measures will be provided for qualifying loans taken out between 1 July 2011 and the end of 2013.
Those whose entitlement to relief would, in the absence of this change, expire in 2010 or after, will continue to qualify for relief at the applicable rate up until the end of 2017. The relief will be abolished completely by the end of 2017.
2.13 Levies
UNIVERSAL SOCIAL CHARGE (USC)
The Universal Social Charge (USC), which comes into effect on 1 January 2011, is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions.
All individuals are liable to pay the Universal Social Charge if their gross income exceeds the threshold of €4004 per annum (€77 per week).
The rates and thresholds of the Universal Social Charge are as follows:
|
Individual aged under 70 years USC Income Thresholds |
|||
| Per Year | Per Week | Per Month | Rate |
| Up to €10,036.00 | Up to €193.00 | Up to €837.00 | 2% |
| From €10,036.01 to €16,016.00 inclusive | From €193.01 to €308.00 inclusive | From €837.01 to €1335.00 inclusive | 4% |
| In excess of €16,016.00 | In excess of €308.00 | In excess of €1335.00 | 7% |
|
Individual aged over 70 years USC Income Thresholds |
|||
| Per Year | Per Week | Per Month | Rate |
| Up to €10,036.00 | Up to €193.00 | Up to €837.00 | 2% |
| In excess of €10,036.00 | In excess of €193.00 | In excess of €837.00 | 4% |
The Income Levy and Health Levy are abolished with effect from 1 January 2011.
The Health Levy used to be part of the PRSI calculations.
Significant PRSI changes were announced in the December 2010 Budget. The following changes are effective from 1 January 2011:
•· The employee PRSI ceiling of €75,036 is abolished. Employee PRSI is now payable (where appropriate) on all income
•· The threshold for employee PRSI remains at €352 a week.
•· Office holders will pay PRSI at a rate of 4% on all income, where their income is over €5,200 per annum. They should be returned at Class K.
•· IMPORTANT: People with a nil liability, such as persons in receipt of occupational pensions should be returned at Class M.
•· The Health Contribution has been abolished and will now be part of Universal Service Charge.
•· In 2011, some subclasses (For example: AL and A1) feature identical rates. This reflects the removal of the Health Contribution charge from certain subclasses.
•· As a result of this change, other subclasses, such as,A2, B2, C2, D2, H2, J2 and S2 no longer exist but they have been retained so that significant changes to payroll systems are not required in moving from 2010 to 2011.
•· No need to change the PRSI subclass to account for the abolition of the Health Contribution. For example, those paying Subclass A1 in 2010 will continue to pay Subclass A1 in 2011 (assuming their wages remain the same).
•· PRSI Classes B, C and D will pay PRSI at 0.9% below €1,443 per week and 4% above €1,443 per week.
•· The Class S rate has increased from 3% to 4% and is payable only on annual income of €5,000 (previously applied to annual income of €3,174 or more). The minimum annual contribution for Class S remains at €253.
Employee PRSI on pension contributions
From 1 January 2011, employee contributions to occupational pension schemes and other pension arrangements will no longer be exempt from employee PRSI. Such contributions will also be subject to the Universal Social Charge which comes into effect on 1 January 2011.
Employers have to pay employer contributions in respect of half of these payments from Jan 1st 2011.
Civil and public servants will pay PRSI on the ‘Pension levy’ portion of their salaries.
Employer PRSI on pension contributions
Employer contributions to occupational pension schemes and other pension arrangements are exempt from employer PRSI which would otherwise apply at a rate of 10.75%.
Civil and public service employers do not have to pay any employer PRSI on the
‘Pension levy’.
Employee’s PRSI-Free Allowance
The PRSI-Free Allowance for employees in Classes A and H with weekly earnings of more than €352 remains at €127 a week and at €26 a week for all employees in Classes B, C and D.
For employees paid other than weekly, alternatives to the PRSI-Free Allowance are:
| Classes | A | B,C,D |
| Fortnightly | €254 | €52 |
| Monthly | €551 | €113 |
|
Subclasses |
A0 |
A6, A8, B0, C0, D0 & H0 |
|
Weekly |
€38 to € 352 |
€352 or below |
|
Fortnightly |
€76 (see note) to €704 |
€704 or below |
|
Monthly |
€165 (see note) to €1,525 |
€1,525 or below |
Note: This threshold only applies to Class A employees, whose total earnings in each week of the fortnight or month are at least €38.
|
Subclass |
AX |
|
Weekly |
€352.01 to €356 |
|
Fortnightly |
€704.01 to €712 |
|
Monthly |
€1,525.01 to €1,543 |
|
Subclass |
AL |
|
Weekly |
€356.01 to €500 |
|
Fortnightly |
€712.01 to €1,000 |
|
Monthly |
€1,543.01 to €2,167 |
|
Subclasses |
A7, BX, CX, DX and HX |
A9 |
JO, M, and SO |
|
Weekly |
€352.01 to €500 |
greater than €352 |
€500 or below |
|
Fortnightly |
€704.01 to €1,000 |
greater than €704 |
€1,000 or below |
|
Monthly |
€1,525.01 to €2,167 |
greater than €1,525 |
€2,167 or below |
|
Subclasses |
A1, A2, A4 and A5 |
|
Weekly |
over €500 |
|
Fortnightly |
over €1,000 |
|
Monthly |
over €2,167 |
|
PRSI Contribution Rates From 1 Jan 2011 |
|||||||||||
|
Non Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
EE % |
ER % |
EE+ER %
|
||||||
|
Private And Some Public Sector Employments |
|||||||||||
|
Up to €37.99 |
J0* |
ALL |
0.00 |
0.50 |
0.50 |
||||||
|
€38 - €352 |
AO |
ALL |
0.00 |
8.50 |
8.50 |
||||||
|
€352.01 - €356 |
AX |
First €127 |
0.00 |
8.50 |
8.50 |
||||||
|
|
|
Balance |
4.00 |
8.50 |
12.50 |
||||||
|
€356.01 - €500 |
AL |
First €127 |
0.00 |
10.75 |
10.75 |
||||||
|
|
|
Balance |
4.00 |
10.75 |
14.75 |
||||||
|
More than €500 |
A1 |
First €127 Balance |
0.00 4.00 |
10.75 10.75 |
10.75 14.75 |
||||||
|
|
A2 |
First €127 |
0.00 |
10.75 |
10.75 |
||||||
|
|
|
Balance |
4.00 |
10.75 |
14.75 |
||||||
|
Use the following subclasses (A6, A7, A4 and A5) only for approved Employees under the Employer’s PRSI Exemption Scheme. |
|||||||||||
|
Up to €352 |
A6 |
ALL |
0.00 |
0.00 |
0.00 |
||||||
|
€352.01 - €500 |
A7 |
First €127 |
0.00 |
0.00 |
0.00 |
||||||
|
|
|
Balance |
4.00 |
0.00 |
4.00 |
||||||
|
More than €500 |
A4 |
First €127 Balance |
0.00 4.00 |
0.00 0.00 |
0.00 4.00 |
||||||
|
|
A5 |
First €127 |
0.00 |
0.00 |
0.00 |
||||||
|
|
|
Balance |
4.00 |
0.00 |
4.00 |
||||||
|
Use the following subclasses for Community Employment participants. |
|||||||||||
|
Up to €352 |
A8 |
ALL |
0.00 |
0.50 |
0.50 |
||||||
|
More than €352 |
A9 |
First €127 Balance |
0.00 4.00 |
0.50 0.50 |
0.50 4.50 |
||||||
| Class J normally relates to people with reckonable earnings of less than €38 per week (from all employments). However, the following employees are insurable at Class J, regardless of earnings: employees aged 66 or over and people in subsidiary employment. | |||||||||||
|
Up to €500 |
J0 |
ALL |
0.00 |
0.50 |
0.50 |
||||||
|
More than €500 |
J1 |
ALL |
0.00 |
0.50 |
0.50 |
||||||
|
|
J2 |
ALL |
0.00 |
0.50 |
0.50 |
||||||
|
FÁS Allowance |
J9 |
ALL |
0.00 |
0.50 |
0.50 |
||||||
|
Office Holders |
|||||||||||
|
All Income |
K1 |
First €100 Balance |
0.00 4.00 |
0.00 0.00 |
0.00 4.00 |
||||||
|
Occupational Pensions |
|||||||||||
|
ALL |
M |
ALL |
0.00 |
0.00 |
0.00 |
||||||
| Class M relates to people with a nil contribution liability (such as employees under age 16 and persons in receipt of occupational pensions). | |||||||||||
|
PRSI Contribution Rates From 1 Jan 2011 |
|||||||
|
Non Cumulative Weekly Earnings Band |
PRSI Subclasses |
How Much Of Weekly Earnings |
EE % |
ER % |
EE + ER% |
||
|
Public Sector Employments |
|||||||
|
Up to €352 |
B0 |
ALL |
0.00 |
2.01 |
2.01 |
||
|
€352.01 - €500 |
BX |
First €26 |
0.00 |
2.01 |
2.01 |
||
|
|
|
Balance |
0.90 |
2.01 |
2.91 |
||
|
More than €500 |
B1 |
First €26 €26.01 to €1,443 Balance |
0.00 0.90 4.00 |
2.01 2.01 2.01 |
2.01 2.91 6.01 |
||
|
|
B2 |
First €26 |
0.00 |
2.01 |
2.01 |
||
|
|
|
€26.01 to €1,443 Balance |
0.90 4.00 |
2.01 2.01 |
2.91 6.01 |
||
|
Up to €352 |
C0 |
ALL |
0.00 |
1.85 |
1.85 |
||
|
€352.01 - €500 |
CX |
First €26 |
0.00 |
1.85 |
1.85 |
||
|
|
|
Balance |
0.90 |
1.85 |
2.75 |
||
|
More than €500 |
C1 |
First €26 €26.01 to €1,443 Balance |
0.00 0.90 4.00 |
1.85 1.85 1.85 |
1.85 2.75 5.85 |
||
|
|
C2 |
First €26 |
0.00 |
1.85 |
1.85 |
||
|
|
|
€26.01 to €1,443 Balance |
0.90 4.00 |
1.85 1.85 |
2.75 5.85 |
||
|
Up to €352 |
D0 |
ALL |
0.00 |
2.35 |
2.35 |
||
|
€352.01 - €500 |
DX |
First €26 |
0.00 |
2.35 |
2.35 |
||
|
|
|
Balance |
0.90 |
2.35 |
3.25 |
||
|
More than €500 |
D1 |
First €26 €26.01 to €1,443 Balance |
0.00 0.90 4.00 |
2.35 2.35 2.35 |
2.35 3.25 6.35 |
||
|
|
D2 |
First €26 €26.01 to €1,443 Balance |
0.00 0.90 4.00 |
2.35 2.35 2.35 |
2.35 3.25 6.35 |
||
|
Up to €352 |
H0 |
ALL |
0.00 |
10.05 |
10.05 |
||
|
€352.01 - €500 |
HX |
First €127Balance |
0.00 3.90 |
10.05 10.05 |
10.05 13.95 |
||
|
More than €500 |
H1 |
First €127Balance |
0.00 3.90 |
10.05 10.05 |
10.05 13.95 |
||
|
|
H2 |
First €127Balance |
0.00 3.90 |
10.05 10.05 |
10.05 13.95 |
||
|
Self-Employed (On PAYE System Only) |
|||||||
|
Up to €500 |
S0 |
ALL |
4.00 |
0.00 |
4.00 |
||
|
More than €500 |
S1 |
ALL |
4.00 |
0.00 |
4.00 |
||
|
|
S2 |
ALL |
4.00 |
0.00 |
4.00 |
||