IN BRIEF: 15 ways Budget 2021 will affect your business

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  1. CGT not being reduced – currently stands at 33%, SFA were looking for it to be reduced to 20%
  2. Carbon Tax to be raised to €7.50 per tonne – so if you business relies on maintaining a fleet of vehicles this will have an impact on your company
  3. The VAT rate for the hospitality sector is to be reduced from 13.5% to 9% from 1st November
  4. Businesses operating in the hospitality sector can also look forward to a maximum cash payment of €5,000/week if they are forced to close on Level 3 restrictions and up. This will be based on 2019 weekly average turnover and takes effect immediately until end of March 2021. Payments will be made in November
  5. The Arts are getting a helping hand with €130 million being committed for 2021 in support
  6. A new Employment Wage Subsidy Scheme is expected to take effect in April 2021 until the end of the year – no further details on that
  7. Corporation Tax remains the same at 12.5%
  8. The Digital Gaming sector can look forward to a tax credit scheme.
  9. There is a slight increase in USC Band 2 fom €20,484 to €20,687
  10. There are no increases to Income Tax rate bands or credits
  11. The Earned Income tax credit however will go up and match the current PAYE tax credit, so it is going up to €1,650 from €1,500, an increase of €150
  12. Dependent Relative tax credit goes up from €70 to €245
  13. The Commercial Rates Waiver will be extended to the end of the year at a cost of €300m
  14. There is a new €30m fund through the Ireland Strategic Investment Fund to support a matched-funding scheme for early stage seed and growth capital.
  15. The EII scheme was mentioned, how it will be modified to fit the current crisis but not more details were given.
    Lastly, for the self-employed, there will be debt warehousing for a whole year with no interest (3% after a year) and no surcharges either. This is for the balance of 2019 tax owed and also preliminary tax payable for 2020.
  16. Lastly, for the self-employed, there will be debt warehousing for a whole year with no interest (3% after a year) and no surcharges either. This is for the balance of 2019 tax owed and also preliminary tax payable for 2020.
Mark Sweetman, ACA

Mark Sweetman, ACA

As a Chartered Accountant I've built my experience working within the SaaS and digital technology industries, growing early-stage businesses from the inside. I help digital entrepreneurs understand their companies and ensure they have all the tools they require to succeed and thrive. I love adopting new tech solutions and making use of these to increase efficiency within our clients' businesses.