This Budget was certainly not as draconian as the previous one. Nearly every employed person in January 2011 noticed a big reduction in their take home pay compared to their previous pay slip in December. The Minister emphasised that there will be no difference in an individual’s payslip from this December compared to next January. This is certainly a welcome relief and should at least ease peoples’ worries somewhat.
The majority of the changes were in VAT and Capital taxes. Some welcome relief for first time buyers was also announced.
I intend summarising the main changes which will have an effect on the ordinary citizen.
- Value of Tax Bands and Credits to be maintained at 2011 levels.
- Universal Social Charge – from 1 January 2012, individuals with total income less than €10,036 will be exempt from the Universal Social Charge. This exemption was €4,004 previously. Continue reading →