- An increase of €1,500 in the income standard rate band from €35,300 to €36,800 for single individuals and from €44,300 to €45,800 for married couples/ civil partners with one earner.
- An increase in the personal tax credit from €1,650 to €1,700
- An increase in the Employee Tax Credit from €1,650 to €1,700
- An increase in the Earned Income Credit from €1,650 to €1,700
- €608 increase to the 2% rate band ceiling to €21,295
- The reduced rate of USC for medical card holders and those over 70 earning less than €60,000 is being extended for a further year.
- The current tax arrangement for working from home are to be enhanced and formalised in this year’s Finance Bill so that an income tax deduction amounting to 30% of the cost of vouched expenses for heat, electricity and broadband in respect of those days spent working from home can be claimed by taxpayers.
- The BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure will take effect from 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023; €20,000 for 2024; and €10,000 for 2025.
- Extension to 2024 of tax deduction for pre-letting expenses of up to €5,000 for landlords where property has been vacant for a year before first letting.
- The Enhanced Help to Buy Scheme provides that where applicants satisfy certain conditions, increased relief is available up to a maximum of €30,000. This relief is being extended to the end of 2022.
The Employment Wage Subsidy Scheme will be extended until 30 April 2022 in a graduated form, but the scheme will close to new employers from 1 January 2022.
The following are the broad parameters of this extension:
- No change to EWSS for the months of October and November
- Businesses availing of the EWSS on the 31st of December 2021 will continue to be supported until the 30th of April 2022
- For December, January and February, the original two-rate structure of €151.50 and €203 will apply
- For March and April 2022, a flat rate subsidy of €100 will be put in place. In addition, the reduced rate of Employers’ PRSI will no longer apply for these two months
Expansion of Warehousing of Tax Liabilities
The tax debt warehousing scheme will be expanded to allow self-assessed income taxpayers with employment income who have a material interest in their employer company to warehouse income tax liabilities relating to their Schedule E income from that employer company.