Saturday 27 December 2014

How the Budget affects you

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Suzanne works as an administrator and earns €35,000 a year. She is single and  is living at home with her parents. Suzanne will be affected by the reduction  in tax credits and reduction in the single person tax band. Suzanne will also  be affected by the proposal to introduce a Universal Social Charge in 2011,  which will replace the Health Levy and Income Levy
Suzanne works as an administrator and earns €35,000 a year. She is single and is living at home with her parents. Suzanne will be affected by the reduction in tax credits and reduction in the single person tax band. Suzanne will also be affected by the proposal to introduce a Universal Social Charge in 2011, which will replace the Health Levy and Income Levy
Carol and Eoin are living together in rented accommodation paying €1,200 a month in rent. They are not married. Carol is self-employed and earns €85,000. Eoin is a civil servant and earns €37,000. Carol and Eoin will be affected by the reduction in tax credits and reduction in the married person tax band. They will also be affected by the proposal to introduce a Universal Social Charge in 2011, which will replace Health Levy and Income Levy.
* The pension levy is not tax deductible for PRSI and the Universal Social Charge with effect from January 1, 2011.
** It is assumed in the above calculations that the rental credit is reduced by 20pc.
Eileen and Jason are a married couple with no children who own a house bought more than eight years ago with a mortgage of €150,000. Jason is an IT manager and earns €80,000 and has a company car worth €35,000. He has annual business mileage of 19,000 miles and his employer pays all the running costs of the car. Eileen and Jason will be affected by the reduction in tax credits and reduction in the married person tax band. They will also be affected by the proposal to introduce a Universal Social Charge in 2011, which will replace Health Levy and Income Levy. We have assumed that there are no changes in relation to the Benefit in Kind rules for company cars
Fiona and Sean are a married couple. Sean works for a large insurance company while Fiona looks after their son Patrick (4) at home and is entitled to home-carer credit. Sean earns an annual salary of €60,000. They are first-time buyers and their mortgage (taken out three years ago) is worth €250,000. As their mortgage was taken out three years ago, it is expected they will qualify for relief until the end of 2017. Fiona and Sean will be affected by the reduction in tax credits, the reduction in the married-persons’ tax band and the €10 reduction per month 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 the Income Levy
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
Michael and Elizabeth recently retired. They are both aged 66. Both receive contributory old age pensions, whilst Michael also has a private pension of €12,000 gross per annum. They will be affected by the proposal to introduce a universal social charge in 2011, which will replace the health levy and income levy

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