Budget 2022 is focused on addressing the rising cost of living and the remainder of the obstacles we still face as we emerge out of the Covid-19 Pandemic.
So what does Budget 2022 mean for you? What does it mean for your business and your employees? AG Associates have developed a summary below.
- Parent’s Benefit: In July 2022, the Parent’s Benefit will be extended by 2 weeks to allow people more time with their newborn during the first 2 years. This will then total 7 weeks.
- Minimum Wage: Minimum Wage is set to increase by 30 cents to €10.50 in January 2022.
- Employer’s PRSI: The weekly income threshold for the higher rate of employer’s PRSI will increase from €398 to €410 to ensure that there is no incentive to reduce the working hours for a full-time employee on the increased minimum wage from 1 January 2022.
- Employment Wage Subsidy Scheme: The EWSS will be extended until 30 April 2022, in a graduated form as follows:
- no change to EWSS for the months of October and November
- businesses availing of the EWSS on the 31st of December 2021 will continue to be supported until the 30th of April 2022,
- across December, January and February, the original two-rate structure of €151.50 and €203 will apply,
- for March and April 2022, a flat rate subsidy of €100 will be put in place. In addition, the reduced rate of Employers’ PRSI will no longer apply for these two months,
- the scheme will close to new employers from 1 January 2022
- Income Tax: An increase of €1,500 in the income tax standard rate band for all earners, from €35,300 to €36,800 for single individuals and from €44,300 to €45,800 for married couples/civil partners with one earner.
- Tax Credits: An increase in the Earned Income Tax Credit, Personal Tax Credit & Employee Tax Credit from €1,650 to €1,700
- USC: From 1 January 2022 there will be a €608 increase to the 2% USC rate band ceiling, meaning that a full-time adult worker who benefits from the increase in the hourly minimum wage rate from €10.20 to €10.50 will remain outside the top rates of USC.
- Remote Workers: An income tax deduction amounting to 30% of the cost of vouched expenses for heat, electricity and broadband in respect of those days spent working from home can be claimed by taxpayers.
- Pension Benefit: There will be a €5 increase in weekly payments
- Carer’s Allowance: Income disregard for Carer’s Allowance is to increase to €350 for a single person and €750 for a couple
- Disability Allowance: Earnings limit on disability allowance up to €375 from €350
- Maternity Benefit, Paternity Benefit, Adoptive Benefit and Parent’s Benefit: Weekly payments are set to increase by €5 from January 2022.
- Pandemic Unemployment Payment: Has been extended to the end of January 2022.
- Tourism and Hospitality VAT Rate: Reduced VAT rate of 9% for the hospitality sector will remain in place to the end of August 2022
- Tourism, Culture and Arts, Gaeltacht, Sport and Media Programmes: €200 million across the Tourism, Culture and Arts, Gaeltacht, Sport and Media Programmes, including support for Regional Culture Centres and the Arts Council, Business Continuity Grants to assist the hard-hit tourism and hospitality sectors and Live Entertainment Support Grants to support a sustainable live entertainment sector.
- Craft Apprentices: Off-the-job training places for 7,000 craft apprentices impacted by Covid-19.
- Covid Credit Guarantee Scheme: Extra funding of €15 million will be provided for the Covid Credit Guarantee Scheme, providing low-cost loans for businesses negatively affected by COVID-19.
- If you are looking to discuss Budget 2022, your business or anything related to the above articles, please reach out to us by calling 021 482 4723 or email us email@example.com