BUDGET 2021: No increases to income tax, USC or PRSI
Budget 2021 coverage brought to you with Michael J. McCormack & Co Accountants
“No one could have predicted the year that we have just had. I want businesses and workers to know that as we face into more uncertain times, the Government is here for you and on your side,” said Tánaiste Leo Varadkar following Tuesday’s Budget 2021 announcement.
“We are also extending the Employment Wage Subsidy Scheme (EWSS), putting more money into low cost loans and grants to help businesses prepare for Brexit. These actions will make a real difference,” the Fine Gael leader continued.
Mr Varadkar said the Government has put in place targeted actions to help business hurting most including a 9% VAT rate, commercial rate holiday extension to the end of the year and a new CRSS Scheme to give businesses forced to close or effectively close a weekly payment up to €5,000.
“The unallocated €3.4 billion Recovery Fund will give us the firepower we need to do more in 2021 to protect jobs if the pandemic continues. We are also increasing spending on infrastructure to over €10 billion in 2021, which will ensure there is work for the construction sector,” he said.
The Tánaiste welcomed no increases in income tax, USC or PRSI. “You will be entitled to up to five weeks of paid parental benefit. If you are off sick for any reason, you can claim illness benefit from day three,” he said.
The Minister for Business, Enterprise and Innovation added that earned income tax credit has increased and is now equal to PAYE tax credit. If you are in receipt of the Covid-19 Pandemic Unemployment Payment, you can earn up to €480 per month from casual work and keep your full payment, he added.
BUDGET 2021 - AT A GLANCE:
- The pension age increase to 67 will not proceed. It will remain at 66
- Headline social welfare rates unchanged
- €4 billion to be spent on the health service
- No increase to income tax
- €3.4 billion unallocated Covid-19 Recovery Fund to be used as needed by the government next year
- €5 billion to be put into the Department of Housing - focus on social and affordable housing supply
- The price of a packet of cigarettes will increase by €0.50, bringing average pack price over €14
- Wage subsidy scheme will be extended to end of 2021
- People can earn just over €400 in casual work without losing Pandemic Unemployment Payment
- ICU beds to increase from 255 to 321
- Price of petrol and diesel to increase by €1.20 and €1.50 per tank fill respectively
- Carbon tax will increase by €7.50 per year until 2029 and €6.50 in 2030 to achieve €100 per tonne
- Help To Buy Scheme extended through 2021. Max rebate for deposit of €30,000.