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Budget 2023 Highlights: Taxation and Social Welfare measures

  1. Increase in Standard Tax band per individual from €36,800 in 2022 to €40,000 in 2023 (tax saving of €790 – this includes the slight increase in credits);
  2. A new rent credit of €500 introduced to those paying rent in 2022 onwards;
  3. A company/business can now give a director or employee a voucher or 2 vouchers totalling €1,000 tax free in a calendar year;
  4. Energy Support Scheme, where your business energy unit costs go up by at least 50% compared to the same period in 2021 then the business qualifies for this scheme and can claim back 40% of the increase;
  5. If this applies to your business including Restaurants, Take aways, Barbers, Shops, etc. we can help you to register and assist you with making claims;
  6. 3 €200 Electricity credits on the way – €200 December with 2 additional €200’s in the new year;
  7. Vacant home tax – if a property is lived in for less than 30 days a year a tax charge of 3 x LPT charge applies;
  8. From 2024 there will be a Residential Zoned Land Tax (Land not been used for the development of housing subject to a 3% rate of tax on the market value.
  9. Help to Buy scheme for First Time Buyers will continue, you can claim back up to €30,000 in income tax you have paid Revenue in the previous 4 years;
  10. No change to capital gain tax / capital acquisitions tax rate 33% or thresholds/reliefs in 2023 budget;
  11. The 9% VAT rate in the hospitality sector is to go back to 13.5% after February 2023; From 1 January 2023 new minimum wage €11.30 per hour;
  12. From 1 January 2023 Social Welfare payments increase by €12 per week;
  13. In addition to the December 2022 double Social Welfare payment the same will happen in October 2022;
  14. In November 2022 there is a double child benefit payment;
  15. Free school books for primary school pupils;
  16. From 1 January 2023 there is a reduction of 25% in creche fees.

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