Budget 2019

Budget 2019

Good morning and greetings from our new home at 12 Northbrook Road, Ranelagh, Dublin 6. As many of you already know, the GSW team moved in early May to our new home in leafy Ranelagh. We are easy to get to with plenty of on street parking and in addition, we are in easy walking distance of two Green Line Luas Stops. We look forward to seeing you all over the coming months.

To mark our new location, we also refreshed and modernised our Website to be more dynamic and a more enjoyable read over the many and varied mediums available in the digital age. Do have a look.

As we will be adding relevant content over time a visit from time to time should always prove rewarding.

There were several items in the Budget that may be of interest.

  • The VAT 9% rate increases by 50% to 13.5%. Although generally referred to as the hotel vat rate it also includes restaurants, bed and breakfasts etc. Such an increase will prove a challenge particularly for smaller operations and it is regrettable that the increase was not phased in over several Budgets.
  • Although there was a small reduction in the USC rates the additional rate of 3% applicable only to the self-employed remains in place where income is €100,000 or more. In effect these people are liable to USC totalling 11% on all their income over €100,000.
  • The 0% BIK rate on electric cars will remain in place for 3 years. There will be an upper ceiling, €50,000 Original Market Value so no Tesla’s or BMW I8s will qualify.
  • 100% deduction of loan interest for rental income re-introduced from 1st
  • KEEP scheme for Key Employees improved
  • Farmers see retention of Stock Relief and an easing of qualification rules for Income Averaging
  • The Group A (Parent to Child) lifetime tax free threshold increased by a miserly €10,000.
  • Employers PRSI increases by 0.1% from 1st January 2019.

PAYE Modernisation commences 1st January and in his speech the Minister predicts an extra €50 million yield in 2019 because of the new online system. If you are unaware or unprepared for the introduction of the new system, please do contact us.

How times have changed. Twenty years ago, in Budget 1998 the then Minister McCreevey increased the 20 cigs by 7 pence and raised an additional IR£57m. In Budget 2019 Minister Donohoe increased the 20 pack by 50 cent to raise only €59m. For the youngsters in the audience, Charlie McCreevey was a Fianna Fail Minister for Finance, pence were what we used before the euro and yes we used to have our own IR£!!