Irish Tax Institute anticipates up to €750m worth of tax cuts in tomorrow's Budget

With Budget day firmly on the horizon for Irish SMEs, the Irish Tax Institute has confirmed small business owners can expect tax cuts of between €600m and €750m in tomorrow’s report.

The figure is based on the government’s Spring Economic Statement which said there would be between €1.2bn and €1.5bn available for combined tax reductions and investment in public services, and repeated confirmations the total adjustment would be split 50:50 between tax cuts and expenditure increases.

With exchequer net receipts for up to the end of August 2015 almost €1.4bn ahead of target, it would seem expansionary measures will be much closer to the upper €1.5bn limit.

Self-employed professionals and farmers are expected to receive tax breaks worth €1,650 during the next five years.

Minister for Finance, Michael Noonan has also confirmed that the Universal Social Charge (USC) will also be slashed by at least one percentage point.

The USC paid by Ireland’s self-employed community is due to be brought in line with charges paid by PAYE workers.

As it stands, a USC disparity exists of around three percentage points between Ireland’s employed and self-employed for those with income over €100,000.

Tomorrow is also a key day for Ireland’s social innovators, with 500 people expected to visit Dublin’s Mansion House for Social Entrepreneurs Ireland’s annual event.

Within the Budget, nine social innovators are set to be handed €600,000 in development funding at tomorrow’s event, with the Government seeking to reward those innovating for a better tomorrow.

Date published 12 Oct 2015 | Last updated 12 Oct 2015