powerpoint budget 2011 8dec2010
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Budget 2011
Anthony CaseyNoone Casey
8 December 2010
IntroductionAnthony Casey, partner in Noone Casey
Chartered AccountantsAdvising IT contractors since 1992Work closely with CPL to provide optimum
tax efficient services to contractors
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Budget 2011
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Budget 2011
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We were told it would be The most onerous budget in decadesIncreased taxesSocial welfare cutbacksIMF/EU
So, what is in the budget?Implications for pension planningRegaining financial controlQuestions
One Slide Summary
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Lowering of tax threshold Reduction in tax creditsNew Universal Social ContributionAbolition of reliefs Restrictions in pension fundingIncreased excise duties
Broadening the tax base
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Income taxNo increase in tax ratesLowering of thresholds by 10%
€18,300 to €16,470 (lower rate)€36,400 to €32,800 (higher rate)
All credits reduced by 10%% of taxpayers in relevant tax bands
No tax 43.9% down to 37.9%Standard rate 41.8% up to 44%Higher rate 14.3% up to 18.1%
Broadening the tax base (cont’d)
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New ‘universal social contribution’ Will replace the Health Levy and the Income
Levy. Will apply to all income; no reliefs or credits Rates:
Total income below €4,004 0%Income up to €10,036 2%Income between €10,036
and €16,016 4%Income over €16,016 7%
PRSI for self employed/directorsUp from 3 to 4%
Abolition of Reliefs
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Rent Relief to be phased outPatent Royalties exemption effective from 24
NovemberArtist exemption (€40k limit)Tax relief on loans to acquire shares in
certain companiesApproved share option schemesProperty based reliefs
S23 only allowed against specific propertyPassive eg Hotel/Nursing Homes only allowed
against specific property
Corporation tax
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Renewed commitment to 12.5% rateSends positive message to multi nationals
in IrelandStart up company exemption continued to
2014
Excise Taxes
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Petrol up 4c per litreDiesel up 2c per litreAir Travel tax revised to€3 from 1 March
2011Vehicle Registration Tax
Extension of scrappage scheme to 30 June 2011
Extension of VRT relief for hybrids
Value Added Tax
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No change in Standard rate at 21% No change in Lower rate at13.5% UK VAT rate increasing from 17.5% to 20%
on 4 Jan 2011
Social Welfare cutbacks
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Child benefit Down €10 for 1st 2 children
Old age pension ‘Frozen’Unemployment benefit ReductionsCarers /disability allowance Reduced
MiscellaneousStamp Duty on residential property
1% to €1m, 2% thereafterAll other reliefs abolished
DIRT up to 27%CGT - expect increases for 2012 &
thereafterCAT – Group thresholds reduced by 20%
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Net salary comparison: Single person, contractorGross Total change % change
€55,000 -€1,355 -3.9%
€75,000 -€1,755 -4.0%
€100,000 -€1,506 -2.7%
€125,000 -€1,256 -1.9%
€150,000 -€1,006 -1.3%
Net salary comparison: Married contractor, 1 salary, 2 childrenGross Total change % change
€55,000 -€1,625 -4.1%
€75,000 -€2,025 -4.1%
€100,000 -€1,776 -3.0%
€125,000 -€1,526 -2.2%
€150,000 -€1,276 -1.6%
How do you regain financial control?
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Maximise Income
Reduce costs Reduce taxes Reduce risk
Contractor income subject to market rates
Assess all personal costs
Assess tax status
Prompt timesheet approval & Invoice on time
Additional sources of income
Assess all business costs
Review all credits & reliefs
3rd party holding your money
Use company structure
Unknown co-directors
Regain Control with i-Finance
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New concept to Irish contracting marketManaged service solution One contractor one company Real time access to your own data
Company & personal earningsBank balancesPAYE & VAT liabilities
Integrated timesheet/invoicingWe manage your paperwork
Benefits of i-Finance•Dashboard providing real time visibility with full control at your finger tips•Data processed by qualified team of Chartered Accountants•Taxes paid on time•CRO returns filed on time•Quick ,efficient & compliant set up
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Benefits of i-Finance (cont’d) •Individual savings/ investment planning•Individual tax planning•Cost effective•Data security•I-Finance is a Noone Casey company•Noone Casey working with CPL contractors since 1992 •www.i-finance.ie
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Personal financial review
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Due to extreme financial implications of Budget 2011 for individuals, we are offering free personal financial review for all attending this seminar.
Contact Phone 01 676 [email protected] or
Reasons to be Cheerful Part 1
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The 12.5% BrandWorkforce is young, skilled and adaptableWorld’s Number 1 destination for FDI
relative to population size (2010 IBM survey)
Home to 9 of the top 10 global ICT companies and 15 of the top 25 medical device firms
Vibrant indigenous competing on the world stage
Reasons to be Cheerful Part 2ICT industry in Ireland employs 75,000
people and accounts for €50 billion of Irish exports
Ireland is the biggest net exporter in the EU of dairy ingredients
More than 1,000 engineering companiesThe global hub for aircraft leasingTax Revenues for first 10 months ahead of
schedule
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Questions?
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For further information check outwww.noonecasey.iewww.taxation.iewww.i-finance.ie