13 October 2020
Last Updated: 13 October 2020
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
• USC 2% threshold adjusted for minimum wage increase (€10.20 instead of €10.10 from 1st January 2021).
• PRSI threshold has also been adjusted in respect of the minimum wage increase, from €10.10 to €10.20.
• For businesses there is a new Covid Restrictions Support Scheme, where grants will be paid to those affected by restrictions imposed from Levels 3 – 5 of the Living with Covid strategy.
• Employment Wage Subsidy Scheme (EWSS) expected to be extended past March 2021.
• Increase in farms flat rate addition from 5.4% to 5.6%
• Illness benefit will now be paid after 3 days instead of 6 days.
• Christmas bonus to be paid to those in receipt of Pandemic Unemployment Payment (PUP) for more than 4 months
|Budget 2021||Budget 2020|
|Capital Gains Tax Rate||33%||33%|
|Capital Acquisitions Tax Rate||33%||33%|
|Income Tax Rates|
|39% (39% – where payments made less frequently than annually)||39% (39% – where payments made less frequently than annually)|
|Home Carer Credit||€1,600||€1,500|
|Earned Income Tax Credit||€1,650||€1,350|
|Single/widowed with dependent children||€39,300||€39,300|
|Married -one income earner||€44,300||€44,300|
|Married – two income earners||€70,600||€70,600|
|Contribution Ceiling||No limit||No limit|
|Universal Social Charge|
|€ 0 – €12,012||0.5%||0.5%|
|€12,013 – €19,874||2.0%|
|€12,013 – €20,687||2.0%|
|€19,874 – €70,044||4.50%|
|€20,687 – €70,044||4.50%|
|€70,044 – €100,000||8%||8%|
|Self employed income > €100,000||11%||11%|
|PAYE income in excess of €100,000||8%||8%|
|Age >70/medical card holders with income < €60,000 – Max rate||2.0%||2.0%|
Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.