Tuesday 17 October 2017

Couple with three children

Income €55,000

Verdict €85 monthly loss

Noel and Michelle have been married for 10 years and have three children (all under 5). Noel works in manufacturing and has a salary of €40,000 while his wife Michelle is a part-time secretary earning €15,000. They spend €700 a month on childcare. They took out their €150,000 mortgage eight years ago.

Noel and Michelle will be affected by the reduction in tax credits and the reduction in child benefit. They will also be affected by the proposal to introduce a Universal Social Charge in 2011, which will replace the Health Levy and Income Levy.



How it compares

2010

2011

Gross income

€55,000

€55,000

Taxable income

€55,000

€55,000

Income tax (before credits)

€11,000

€11,000

Total credit

€7,320

€6,660

PRSI

€1,336

€1,336

Universal social charge

(Income and health levies)

€2,700

€2,517

Net income

€47,284

€46,747

Child benefit

€5,844

€5,364

Total deductions

percentage of gross income

14.03%

15%

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