Friday 23 June 2017

Married couple own home

Income €80,000

Verdict €133 monthly loss

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.



How it compares

2010

2011

Gross income

€80,000

€80,000

Benefit in kind

€8,400

€8,400

Taxable income

€88,400

€88,400

Income tax (before credits)

€26,710

€27,466

Total credit

€5,490

€4,950

PRSI

€2,773

€3,272

Universal social charge

(Income and health levies)

€5,705

€5,507

Net income

€50,302

€48,705

Total deductions

percentage of gross income

37.12%

39.12%

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