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Leinster House Budget 2024

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Budget 2024: What changes took effect this month?

Some changes from Budget 2024 commenced immediately while other changes took effect on 01 January 2024. Here we outline some of the changes that took effect at the start of this month that businesses may need to be aware of.

Budent 2024 was announced on 10 October 2023, with a budget package of €14 billion being outlined in the Dáil.
 
The package included a €5.3 billion increase in public spending and €1.4 billion for one-off cost-of-living supports.
 
Some changes commenced immediately, others took effect from 01 January 2024. Other measures won’t take hold until later in the year.
 
Here are some of the measures that took effect on 01 January that you should be aware of:
 

 

Tax Changes From 01 January 2024:

 

VAT

 
  • VAT registration thresholds increased to €40,000 for services and €80,000 for goods.
  • The previous 9% VAT rate on ebooks and audiobooks is reduced to zero.
 

Income Tax Bands & Credits 

 
The tax bands and tax credits for 2024 were enhanced in the recent Budget and hence, take effect from 1 January 2024. 
 
  • The single rate income tax band has been increased by €2,000 to €42,000. 
  • The married income tax band has been increased to €51,000 (with potential for an additional €33,000 where the second spouse has earnings). 
  • The personal tax credit and employee tax credit increase by €100 to €1,875. 
  • And the married tax credit increases by €200 to €3,750. 
 

USC

 
From 1 January 2024, the ceiling for the 2% Universal Social Charge (USC) band increased by €2,840, from €22,920 to €25,760.
 
However, the 4.5% USC rate that currently applied to incomes between €22,920 and €70,044 will be reduced to 4%.
 
The 4% rate now applies to income between €25,760 and €70,044.
 
 

Rent Tax Credit

 
The Rent Tax Credit has also been extended to parents of students renting a room or digs throughout this coming year and the tax credit will be available for the 2022 and 2023 tax years also.
 
 

 

Other Employment and Business Changes From 01 January 2024:

 

Minimum Wage

 
The national minimum wage has increased by €1.40. The new national minimum wage is now €12.70 per hour.
 

Research and Development (R&D) Tax Credit

 
The Research and Development (R&D) Tax Credit has also increased from 25% to 30% on qualifying expenditure on R&D, while the first-year payment threshold has increased from €25,000 to €50,000.
 
 

 

What comes into place later this year?

 
It was announced in Budget 2024 that the Carbon Tax will increase by €7.50 per tonne of carbon dioxide emitted, from €48.50 to €56.00. This has been applied since 11 October last for motor fuels and will affect all other fuels from 01 May 2024.
 
All PRSI rates will increase by 0.1% on 01 October 2024.
 
 

 

Full Budget 2024 Report

 
You can read our full Budget 2024 Report here
 
 

Date published 17 Jan 2024 | Last updated 17 Jan 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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