The Irish Annual Budget for 2024 happened yesterday, and our Tax partners Taxback have identified the most important changes that could affect you and your money.
- Higher Rate Income tax band raised by €2,000
Higher Rate tax band is increasing to €42,000, up €2,000 this year, good news for all those in work.
- Universal Social Charge tax cut from 4.5% to 4%
Also the lower, 2% band has been raised up by €2,840, meaning it will apply on earnings up to €25,760. More great news for workers.
- Renters credit increased to €750.
For single person renters you’re now entitled to a tax credit worth €750 next year. Married couples can claim €1,500, and if you pay for a student child living in rented accommodation, you can avail of the Rent Tax Credit for them too.
- Energy credits worth €450
Three instalments of €150 per household between the end of this year and April of next year, will go some way to help the high cost of energy.
- Double childcare benefit for families in December 2023
A welcome boost to qualifying households going into the Christmas period, along with the extra benefit of 18-year-olds in education can now receive child care benefits too. Other credits such as the Home Carer Tax Credit and the Single Person Child Carer Credit have been increased by €100. As well as this, the Incapacitated Child Tax Credit also increased by €200
- €12 increase to all social welfare and pension payments
This increase is on top of the above childcare changes and adds up nicely. Other changes see the threshold for income on applicants for the Working Family Payment is to be raised by €54 per week.
In conclusion, the Irish Budget ’24 brings positive changes during the continuing cost of living crisis, from taxes to family support and social welfare. Stay informed, make the most of these opportunities by ensuring you receive all the benefits you are entitled to.
