So, 2015 is finally upon us and it seems like a lifetime ago that Budget 2015 was announced. But, it’s from now on that you’ll notice many of the changes that were introduced – what were they again?
Never fear! Here we’ll go through all the changes that you should notice on your first payslip for the new year.
Reduction in Income Tax
There were some welcome changes to the Income Tax rates with an increase in the threshold for the marginal rate – changing from €32,800 to €33,800 for a single person and to €42,800 for married couples of one income, and €67,800 for a married couples with two incomes. Furthermore, the top rate of Income Tax was reduced by 1%.
Therefore, those on low incomes will not see any changes to their Income Tax rates, but those on higher incomes will see small savings amounting to €18.50 per month for someone on a salary of €35,000 or €52 per month for someone earning €75,000.
The USC rates and bands were adjusted a little, giving a small amount back to most people – as well as adding in a higher rate for higher income earners. So, what changes should you expect.
|Salary€16,000||Salary €25,000||Salary €35,000||Salary €75,000|
|Annual USC Bill||€404.57||€964.57||€1,594.57||€4,372.13|
As you can see, the weekly or monthly savings aren’t groundbreaking, but every little helps these days!
There are still people out there who think the Rent Tax Credit is gone – but it isn’t! It is in the process of being phased out, but if you have been renting continuously since 7th December 2010, you are still eligible to the rent tax credit, although at a reduced rate each year, until 2017.
So, yet again, 2015 sees another step down in the Rent Tax Credit to €120 (from €160 in 2014).
If your pay has changed and the difference isn’t explained by the Income Tax, USC or Rent changes, then it could be due to a change in circumstances. For instance, if your marital status changed, or if you are married, you have had children and your job has changed. Your pay may also look different if you were not in continuous employment last year or your pay rate has changed significantly.
Hope that helps you in reading your payslip. The next important document you will receive will be your 2014 P60, which is your PAYE and Tax summary for that year.
You can use this to see if you are due a tax refund, so be sure to get in touch and we will review your 2014 taxes for refunds.
Want a Form?
Apply now and we’ll give you a call to post out a form to claim back your 2014 tax refund.
Written by Alexandra Byrne.
I’m what you call an all-rounder! Having worked in customer services, accounting and now in marketing, I’m the one who can tie all the pieces of the puzzle together. I’ve a BSc from University of Limerick so I’m analytical, but I also love change! I’m constantly astounded by the lack of awareness we Irish have about our entitlements, and I like spreading the word about tax refunds – so as many people as possible can claim everything they are entitled to.