Personal

Standard Rate Band

The 20% standard rate band has been increased by €1,500 for all earners. The following rate bands will apply for 2022: 

Personal Circumstances 

Standard Rate Band

Single, widowed or surviving civil partner 

€36,800 

Single, widowed or surviving civil partners, qualifying for the Single Person Child Carer Credit

€40,800

Married couples or civil partners (one income)

€45,800 

Married couples or civil partners (two incomes)

€45,800 (with an increase of
€27,800 max) 

Tax Credits

The Personal Tax Credit, Employee Tax Credit and the Earned Income Credit have all been increased by €50 from €1,650 to €1,700.

Universal Social Charge (USC)

The ceiling of the second USC rate band will be increased from €20,687 to €21,295.  Accordingly, USC Rates & Bands from 1 January 2022 will be as follows: 

€0 – €12,012 

0.5%

€12,013 – €21,295

2%

€21,296 – €70,044

4.5%

€70,045+

8%

Self-employed income over €100,000 

3% surcharge

 

The reduced rate of USC for all medical card holders and those over 70 earning less than €60,000 is maintained for a further year.

Remote Working

Confirming government policy to facilitate and support remote working, Minister Donohoe announced an income tax deduction of 30%  of the cost of vouched expenses for heat, electricity and broadband incurred for days spent working from home.

Debt Warehousing

The tax debt warehousing scheme will be extended to allow self-assessed taxpayers with employment income who have a “material interest” in their employer company to warehouse income tax liabilities relating to their employment income from that employer company.   

Pre – Letting Expenditure

Relief for pre-letting expenses for landlords has been extended for a further three years to the end of 2024.

International Flight Crew

The tax rules associated with international air crews will be amended.  Under the current rules, any individual who is employed aboard an aircraft that is operated by an enterprise whose effective place of management is in Ireland is within the scope of Irish income tax. The amendment will exclude non-resident air crew from the charge to Irish income tax where certain conditions are satisfied.

Vehicle Registration Tax (VRT)

VRT for cars (Category A) is based on the level of carbon dioxide (CO2) emissions and nitrogen oxide (NOx) emissions. From January 2022, a revised VRT table is being introduced. The 20-band table will remain with an uplift in rates, as follows:

  • 1% increase for vehicles that fall between bands 9-12.
  • 2% increase for bands 13-15.
  • 4% increase for bands 16-20.

In addition, to continue to incentivise the uptake of electric vehicles, the €5,000 relief for Battery Electric Vehicles will be extended for two years to end 2023.

 

For further information on Budget 2022, please contact Brian Duffy or your usual William Fry Tax contact.