Budget 2012
SUMMARY OF KEY POINTS IN BUDGET 2012
INCOME TAX
The following are details of the Budget Statement of 6 December 2011, as made by the Minister for Finance.
Tax Credits
There are no changes to tax credits.
|
Tax Credit |
2011 € |
2012 € |
|
Single Person |
1,650 |
1,650 |
|
Married or in a Civil Partnership |
3,300 |
3,300 |
|
PAYE Credit |
1,650 |
1,650 |
|
Widowed Person or Surviving |
2,190 |
2,190 |
|
Civil Partner (without dependant children) |
|
|
|
One Parent Family Credit |
1,650 |
1,650 |
|
Incapacitated Child Credit Max |
3,300 |
3,300 |
|
Blind Tax Credit: |
|
|
|
Single Person |
1,650 |
1,650 |
|
Married or in a Civil Partnership |
|
|
|
- One Spouse or Civil Partner |
|
|
|
Blind |
1,650 |
1,650 |
|
Married or in a Civil Partnership |
|
|
|
- Both Spouses or Civil Partners |
|
|
|
Blind |
3,300 |
3,300 |
|
Widowed Parent |
|
|
|
Bereaved in 2011 |
- |
3,600 |
|
2010 |
3,600 |
3,150 |
|
2009 |
3,150 |
2,700 |
|
2008 |
2,700 |
2,250 |
|
2007 |
2,250 |
1,800 |
|
2006 |
1,800 |
- |
|
Age Tax Credit: |
|
|
|
Single or Widowed or Surviving |
|
|
|
Civil Partner |
245 |
245 |
|
Married or in a Civil Partnership |
490 |
490 |
|
Dependent Relative |
70 |
70 |
|
Home Carer |
810 |
810 |
Marginal Rate Reliefs
|
Relief |
2011 |
2012 |
|
(Allowed at the taxpayer’s top rate of tax) |
€ Max |
€ Max |
|
Employing a Carer |
50,000 |
50,000 |
Standard Rated Reliefs (Allowed at 20% rate band)
Service Charges
The measures announced in Budget 2011 are unchanged. The relief is being abolished for tax year 2012 and subsequent years. In 2011, a maximum of €400 tax relief was granted (at the 20% rate) for service charges paid in the year 2010.
|
Relief at |
Allowed in the |
For service charges |
|
Nil |
2012 |
2011 |
|
€400 |
2011 |
2010 |
Relevant Contracts Tax (RCT) - Important Note Relating to C2 Applications
The new electronic RCT system will go live on 1 January 2012. From 28 November 2011 Principal Contractors will be able to access the new system to allow them notify Revenue of the contracts that will be rolling over into 2012 or make amendments to these contracts. Also, in general, subcontractors with a valid C2 on 25 November 2011 will qualify for the zero rate from 1 January 2012.
Further information can be found here http://www.revenue.ie/en/tax/rct/new-system-faqs.html and video tutorials on how the new system will operate can be found on http://www.revenue.ie/en/tax/rct/online-information-session.html
Reduction in Frequency of Tax Returns and Payments
Reductions in the frequency of VAT, PAYE/PRSI, & RCT tax returns and payments for smaller businesses are being extended to eligible businesses from 1 January 2012. This will mean that businesses eligible for the reduction will only have to make payments at the end of each 3, 4 or 6 monthly period, as appropriate.
