Budget 22

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Budget 22 – Summary

  • Limited in substance with not much consideration for medium to long term economic development.
  • Enhancement for SME sector were limited to the extension of Start-up tax relief and EIIS with changes relating to the later deferred until announcement within the Finance Act.
  • Continuation of 9% VAT rate for hospitality welcomed.
  • Budget expenditure increases focused significantly on Education, Transport and Social Welfare.

Personal Taxation

Changes:

  1. Standard tax band increased by €1,500
  2. PAYE tax credit / Earned tax credit increased by €50
  3. Work from home – 30% of vouched heat / electricity / broadband
  4. Minimum wages increased to €10.50
  5. USC second band increased from €20,687 to €21,295 in recognition of increase in minimum wage
  6. Aviation crew temporary amendments to taxation of salary

Business Taxation

  1. 9% hospitality VAT rate extended 31 August 2022
  2. Start-up relief for Corporation tax extended to 5 years (currently 3 year)
  3. EIIS – Extended for a further 3 years – Wider range of investments funds – Amendments to the criteria and operation of the scheme to be introduced (Finance Act)
  4. Tax credit Digital Games – 32% of eligible expenditure up to maximum of €25 million per project

Housing

  1. Land tax in zoned areas – 3% tax to encourage release of land to housing within zoned areas
  2. Pre letting expenses for landlords up to 3 years prior to letting to encourage landlords to let vacant property.

Environment

  1. VRT to increase from 1% to 4% for bands ranging from 9-20
  2. Battery powered vehicles – €5,000 grant extended to 31.12.23

Farming

  1. Young farmer relief due to cease on 31.12.22 – Gov. looking to extend this and in discussion with EU on state aid implications
  2. Stock relief – extended 31.12.24

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ISME CEO, Neil McDonnell will be joining the RTÉ 1 special coverage of #Budget22.

Take a look here ????https://t.co/3VarSsFA81

 

ISME’s pre-budget submission can be read and downloaded here.

Our main asks are below:

  1. Extend fiscal life-support to SMEs through targeted, grant-based liquidity supports.
  2. Implement a series of basic tax reforms including a solidarity tax. A USC surcharge of 3% should be introduced for all PAYE workers earning over €100,000 per annum, or a third PAYE rate of 43% should be introduced for the same cohort.
  3. Reinstate the temporary reduction in the punitive 23% VAT rate to the previous 21% level.
  4. Reforms on property tax, commercial rates and Local Property Tax.
  5. Ireland’s further education and training regime is inconsistent with activating a bigger workforce or training the unskilled. ISME also acknowledges that our domestic SME base requires extensive training to improve its productivity. This should be incentivised via the tax system like the Teagasc ‘Green Cert.’

 

LIVE #Budget22 updates below: