Irish Budget 2024 Highlights; Key Takeaways and Important Points

The long-awaited Irish Budget 2024 has been announced by Minister for Finance Michael McGrath and Minister for Public Expenditure Paschal Donohoe in the Dáil. This budget introduces a series of significant changes that will shape Ireland’s tax and income landscape.

Let’s dive into the most important details of Budget 2024, dissecting the proposed tax changes, social welfare enhancements, and other important aspects.

#1: Taxation Measures

Income Tax

  • No Rate Changes: Income tax rates remain at 20% and 40%
  • Standard Rate Tax Band Increase: Up by €2,000 to €42,000 for single persons, with proportional increases for others
  • Tax Credit Increases: Several tax credits, including Personal Tax Credit and Home Carer Tax Credit, will rise by €100

Universal Social Charge (USC)

  • Band Increases: 2% USC band increases by €2,840 to €25,760
  • 4.5% USC Reduced to 4%: Applies to income between €25,761 and €70,044
  • Extension for Medical Card Holders: Until 31 December 2025

Other Taxation Changes

  • VAT and Excise: Changes in VAT rates, excise duties, and other taxes

#2: Employment and Business

  • Minimum Wage Increase: By €1.40 to €12.70 per hour (January 2024
  • Parental Leave Extension: By 2 weeks to 9 weeks from August 2024
  • PRSI Rate Increase: All PRSI rates rise by 0.1% on 1 October 2024
  • R&D Tax Credit Increase: From 25% to 30% on qualifying R&D expenditure (January 2024)
  • CGT Entrepreneur Relief: For angel investors in innovative start-up SMEs

#3: Housing

  • Rent Tax Credit Increase: From €500 to €750 per year (from 2024)
  • Support for Landlords: Temporary tax relief for landlords with certain conditions
  • Mortgage Interest Tax Relief: Introduced for eligible homeowners

#4: Social Welfare

Weekly Payments

  • Increase in Maximum Rates: All weekly social welfare payments will rise by €12 in January 2024
  • Qualified Child Rates: €4 increase for children under 12 and €4 for children aged 12 and above (January 2024)

Winter Payments

  • Once-off Payments (Winter 2023): Including Living Alone Allowance, Fuel Allowance, Child Benefit, Working Family Payment, and more

Christmas Bonus

  • 100% Bonus: Paid in early December 2023 to qualifying social welfare recipients

Child Benefit

  • Double Payment: Paid in December 2023
  • Extension to Age 18: For children in full-time education

#5: Education and Training

School Meals

  • Hot School Meals: Extended to 900 schools

Student Support

  • Student Contribution Reduction: By €1,000 for qualifying students (2023/2024 academic year)
  • Abolishing Student Contribution: For incomes under €55,924 (from September 2024)
  • Student Grant Increase: Maintenance grant rates rise from January 2024

Apprenticeships

  • Increased Places: Craft apprenticeship scheme places to increase
  • Fee Reduction: 33% reduction in the contribution fee for apprentices in higher education (2023/2024 academic year)

#6: Transportation

  • Public Transport: Continued reduced fares, Young Adult Leap Card extended
  • VRT Relief: Extended for battery electric vehicles (BEVs)

#7: Justice and Other Announcements

  • Funding for Justice: Recruit 1,000 new Garda, 250 civilian staff, and 400 military personnel
  • Two New Funds: Future Ireland Fund and Infrastructure, Climate, and Nature Fund
  • Cigarette Price Increase: €0.75 per packet
  • Support for Refugees from Ukraine: €2.5 billion for humanitarian aid
If you have any questions about how the 2024 Budget might impact your taxes, please don’t hesitate to reach out to our expert accountants in Dublin 15. Feel free to speak to our company formation experts in Dublin 15 for a detailed consultation. TALK TO OUR ACCOUNTING EXPERTS RIGHT NOW | Call us at (087) 225 7706, 01 441 6919, or email us at Info@tascaccountants.com for any assistance.

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