Tuesday 6 December 2016

Budget boost for PAYE workers

Published 09/10/2015 | 02:30

Tax reduction and lower USC is expected in the budget
Tax reduction and lower USC is expected in the budget

Middle income earners are in line to benefit from next week's budget with a cut in the rate of tax paid and a reduction in the universal social charge (USC) on the cards.

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The USC, the tax which replaced the old health levy, is paid by those who earn more than €12,000 per annum with different rates depending on how much you earn.

However cuts of between 1pc and 1.5pc are now expected across each of the different rates in a bid to woo those in the pay as you earn (PAYE) sector.

Further cuts to income tax are also forecast which will see middle income earners (those earning between €33,000 and €70,000) pay less than 50pc tax on salaries for the first time in six years.

The tax on every euro earned over €33,800, currently at 51c, will drop to 49pc or 49.5pc.

Irish Independent

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