IN BRIEF: 15 ways Budget 2021 will affect your business
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- CGT not being reduced – currently stands at 33%, SFA were looking for it to be reduced to 20%
- 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
- The VAT rate for the hospitality sector is to be reduced from 13.5% to 9% from 1st November
- 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
- The Arts are getting a helping hand with €130 million being committed for 2021 in support
- 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
- Corporation Tax remains the same at 12.5%
- The Digital Gaming sector can look forward to a tax credit scheme.
- There is a slight increase in USC Band 2 fom €20,484 to €20,687
- There are no increases to Income Tax rate bands or credits
- 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
- Dependent Relative tax credit goes up from €70 to €245
- The Commercial Rates Waiver will be extended to the end of the year at a cost of €300m
- 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.
- 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. - 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.
