Tracey Glacken is a certified public accountant and owner of Glacken Accountants. She works with SMEs in the area of audit, financial statements preparation, business planning and taxation. Log on to www.glackenaccountants.com for more information.
Looking back at Tuesday's budget Ms Glacken looked at some of the key topics: "Tuesday’s Budget as announced by Minister Noonan was favourable towards the self employed with an increase in the earned income tax credit by €400 bringing it to €950. Universal social charge rates were also decreased by 0.5 per cent on the lower three rates bringing the lowest rate to 0.5 per cent from January 2017. There was no change to the tax rates or tax bands.
"The nine per cent VAT rate has been retained as a reaction to Brexit. Given that Ireland has seen a decrease in the amount of UK visitors since Brexit this will be welcomed by tourist providers.
"Minister Noonan also stated that there was no intention to change the current 12.5 per cent corporation tax rate. The Start Your Business relief has also been extended until the end of 2018. There was no change to the 33 per cent rate of capital gains tax but the 20 per cent rate for entrepreneur relief has been reduced to 10 per cent.
"For landlords the interest deductibility for qualifying interest payments on monies borrowed for residential rented properties has been increased from 75 per cent to 80 per cent. This rate will increase by five per cent per annum until it is fully restored to 100 per cent deductibility.
"A help to buy scheme has been introduced to assist first time buyers with purchasing a new property. A rebate of income tax paid over the previous four years up to a maximum of five per cent of the purchase price up to the value of €400,000 will be provided. Applicants must take out a mortgage of at least 80 per cent of the purchase price."
