A single person in PAYE employment with dependent children will see the following changes to their payslips next year:- Reduction is USC rates from 2% to 1.5% and 4% to 3.5% with an additional rate of 8% applicable to incomes over €70,044
- Increase of entry level for USC to €12,012 and entry level to top rate USC to just above minimum wage (estimating €17,577)
- Top rate of Income Tax reduced from 41% to 40%
- Increase in Standard Rate band from €32,800 to €33,800 for single person
- Up to €500 Tax Relief on Water Charges at Standard Rate of 20% (worth up to €100 per household)
- Child Benefit increased by €5 per child per month for all families (€60 per child per year)
Examples of Annual Savings
Assumptions - in receipt of One Parent Family Credit and without (provide both options in the commentary)
A summary of how these changes affect a single person with 2 dependent children depending on their salary level is outlined below
|
Combined Salary
|
€18,000
|
€26,000
|
€35,000
|
€50,000
|
€80,000
|
|
|
|
|
|
|
|
|
Income Tax
|
-
|
-
|
-
|
€332
|
€632
|
|
Tax Credits
|
-
|
-
|
-
|
-
|
-
|
|
USC
|
€174
|
€174
|
€174
|
€174
|
€74
|
|
Child Beneft
|
€120
|
€120
|
€120
|
€120
|
€120
|
|
Water Charge Tax Ref
|
€35
|
€35
|
€35
|
€35
|
€35
|
|
|
|
|
|
|
|
|
Total Saving
|
€329
|
€329
|
€329
|
€661
|
€861
|
Figures provided by Red Oak Tax Refunds
