Budget 2011 4 Year Plan

Taxation Measures to be Introduced:

• Tax credits and bands to be reduced by 16.5%, which will reduce the entry point of income tax to approx E15,300 from E18,300 in 2010 tax year
• Minimum wage to be reduced from E8.65 to E7.65
• Implement pension-related tax changes to yield E700 million, with E240 million in tax savings on the public sector pension related deduction.
• Abolish/curtail a range of tax expenditures yielding E755 million.
• Increase the standard rate of VAT from 21% to 22% in 2013, with a further increase to 23% in 2014. These changes will yield E620 million.
• Introduce a local services contribution to fund essential locally-delivered services. This will yield E530 million.
• Increase the price of carbon gradually from E15 to E30, yielding E330 million.
• Reform capital acquisitions and capital gains tax to yield an additional E145 million.

The plan will reduce the income tax structure back to 2006 levels.

Reduced frequency of tax returns and payments

Reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will again be extended to eligible businesses from 1 January 2011. Visit revenue.ie for full details.

Out Sick? Should your employer pay.

In general an employee has no right under employment law in Ireland to be paid while on sick leave. Consequently, it is at the discretion of the employer to decide his/her own policy on sick pay and sick leave, subject to the employee’s contract or terms of employment.

Self Employed not Earning??

What social welfare payments are available if your business has slowed down?

If you are self-employed but do not have enough business to provide sufficient income, you can access social welfare jobseeker's payments. It is not necessary to close down your business to access these payments.

If you find yourself unemployed or you are getting less work you may qualify for a social welfare payment. You do not need to de-register as self-employed to get a social welfare payment.

Contact your local welfare office for further details.

Calculating Redundancy?

A redundancy lump sum is calculated according a certain formula based on years of service in an employment. The citizensinformation.ie has provided a simple worksheet to help you work it out for yourself. Visit the page Here!

New Social Payment

A GROUP assessing the impact of the proposed universal social contribution (USC), to replace employee PRSI, and the health and income levies will report to Minister for Finance Brian Lenihan within weeks.

A new universal social contribution will replace employee PRSI, the health levy and the income levy. It will be paid by everyone at a low rate on a wide base as a collective contribution to public services.

Finance Minister, Mr Lenihan announced his intention to introduce the charge on income in his budget speech last December.

Extra training Places

E12 million has been allocated to fund 5,000 extra training and education places for unemployed people under the Labour Market Activation Fund. Qualifax.ie has details of education and training courses, including the places for unemployed people supported by the Labour Market Activation Fund.