Minister for Finance, Paschal Donohoe, delivered the 2020 budget today, Tuesday 8th October 2019.
This budget announcement was a rather subdued affair as the clock ticked down to the cliff edge of a No Deal Brexit.
Running alongside Brexit was a focus on Climate Change with the much flagged increase in Carbon Tax coming to fruition at an increase of €6 per tonne.
We take a look at how Budget 2020 affects small businesses and the self-employed:
- Earned Income Tax Credit for the self-employed increased by €150 to €1,500
- Employers PRSI rates increased by 0.1% - from 10.95% to 11.05% and from 8.7% to 8.8%
- Home Carer Credit increased by €100 to €1,600
- Research & Development Tax Credit amended to make it more attractive for SMEs to avail of the scheme
- Changes to KEEP Share Incentive Scheme – part time employees can now qualify for the incentive
- EIIS Scheme enhanced – Full Income tax relief to be provided for investors in year of investment and investment limits increased
- Help to Buy Scheme extended for a further 2 years
- Commercial Stamp Duty to rise by 1.5% to 7.5%
- Gift/Inheritance Tax – Group A Threshold, which covers gifts/inheritances from parents to their children, has been increased by €15,000
- Dividend Withholding Tax to rise to 25% in 2020 with a new regime being introduced in 2021
- The Capital Gains Tax Relief for Farm Restructuring is being extended to 2022
For the full TaxAssist Accountants Budget Summary, please click here.
For a 2020 Tax Rate Card, please click here.