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As we move towards the long-awaited ending of COVID-19 restrictions, the Ministers provided a relatively upbeat picture of growth for the economy.
 
Tax cuts were a little higher than signalled meaning all workers & the self-employed will have more money in their pockets next year. Businesses will be very glad to see the extension of the Employment Wage Subsidy Scheme (EWSS) albeit with amended conditions and reduced rates.
 
Here, we take a look at how Budget 2022 affects small businesses and the self-employed:
 
  • Personal Tax Credit increased by €50 to €1,700
  • Employee Tax Credit/Earned Income Tax Credit also increased by €50 to €1,700
  • Amount you can earn before suffering income tax at 40% increased by €1,500 to €36,800
  • Employment Wage Subsidy Scheme to be extended beyond December 2021 to 30 April 2022 albeit at reduced rates
  • VAT rate on hospitality and tourism sector to remain at 9% until 31 August 2022
  • Commercial rates holiday to be extended to end of 2021 with amended conditions meaning not all businesses will qualify
  • Amendment of Debt Warehousing Scheme which will benefit company directors
  • Working from Home – improved tax relief for utilities and broadband costs incurred by employees working from home
  • Corporate tax rate to increase to 15% for companies with annual turnover in excess of €750m from 01 January 2023 at the earliest. 12.5% rate to remain for all other companies.
 
For the full TaxAssist Accountants Budget Summary, please click here
 
For a 2022 Tax Rate Card, please click here.

 

 

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