Powerpoint budget 2011 8dec2010
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Powerpoint budget 2011 8dec2010

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  • 45% of work force pay no taxes 60% of all income tax paid by 8% of population

Powerpoint budget 2011 8dec2010 Powerpoint budget 2011 8dec2010 Presentation Transcript

  • Budget 2011 Anthony Casey Noone Casey 8 December 2010
  • Introduction
    • Anthony Casey, partner in Noone Casey Chartered Accountants
    • Advising IT contractors since 1992
    • Work closely with CPL to provide optimum tax efficient services to contractors
    17/12/10 Noone Casey Budget 2011
  • Budget 2011 17/12/10 Noone Casey Budget 2011
  • Budget 2011
    • We were told it would be
      • The most onerous budget in decades
      • Increased taxes
      • Social welfare cutbacks
      • IMF/EU
    • So, what is in the budget?
    • Implications for pension planning
    • Regaining financial control
    • Questions
    17/12/10 Noone Casey Budget 2011
  • One Slide Summary
      • Lowering of tax threshold
      • Reduction in tax credits
      • New Universal Social Contribution
      • Abolition of reliefs
      • Restrictions in pension funding
      • Increased excise duties
    17/12/10 Noone Casey Budget 2011
  • Broadening the tax base
    • Income tax
      • No increase in tax rates
      • Lowering of thresholds by 10%
        • € 18,300 to €16,470 (lower rate)
        • € 36,400 to €32,800 (higher rate)
      • All credits reduced by 10%
      • % of taxpayers in relevant tax bands      
        • No tax 43.9% down to 37.9%
        • Standard rate 41.8% up to 44%
        • Higher rate   14.3% up to 18.1%
    17/12/10 Noone Casey Budget 2011
  • Broadening the tax base (cont’d)
    • New ‘universal social contribution’
      • Will replace the Health Levy and the Income Levy.
      • Will apply to all income; no reliefs or credits
      • Rates:
        • Total income below €4,004 0%
        • Income up to €10,036 2%
        • Income between €10,036
        • and €16,016 4%
        • Income over €16,016 7%
      • PRSI for self employed/directors
        • Up from 3 to 4%
    17/12/10 Noone Casey Budget 2011
  • Abolition of Reliefs
    • Rent Relief to be phased out
    • Patent Royalties exemption effective from 24 November
    • Artist exemption (€40k limit)
    • Tax relief on loans to acquire shares in certain companies
    • Approved share option schemes
    • Property based reliefs
      • S23 only allowed against specific property
      • Passive eg Hotel/Nursing Homes only allowed against specific property
    17/12/10 Noone Casey Budget 2011
  • Corporation tax
    • Renewed commitment to 12.5% rate
    • Sends positive message to multi nationals in Ireland
    • Start up company exemption continued to 2014
    17/12/10 Noone Casey Budget 2011
  • Excise Taxes
    • Petrol up 4c per litre
    • Diesel up 2c per litre
    • Air Travel tax revised to€3 from 1 March 2011
    • Vehicle Registration Tax
      • Extension of scrappage scheme to 30 June 2011
      • Extension of VRT relief for hybrids
    17/12/10 Noone Casey Budget 2011
  • Value Added Tax
    • No change in Standard rate at 21%
    • No change in Lower rate at13.5%
    • UK VAT rate increasing from 17.5% to 20% on 4 Jan 2011
    17/12/10 Noone Casey Budget 2011
  • Social Welfare cutbacks
    • Child benefit Down €10 for 1 st 2 children
    • Old age pension ‘Frozen’
    • Unemployment benefit Reductions
    • Carers /disability allowance Reduced
    17/12/10 Noone Casey Budget 2011
  • Miscellaneous
    • Stamp Duty on residential property
      • 1% to €1m, 2% thereafter
      • All other reliefs abolished
    • DIRT up to 27%
    • CGT - expect increases for 2012 & thereafter
    • CAT – Group thresholds reduced by 20%
    17/12/10 Noone Casey Budget 2011
  • Net salary comparison: Single person, contractor Gross Total change % change € 55,000 -€1,355 -3.9% € 75,000 -€1,755 -4.0% € 100,000 -€1,506 -2.7% € 125,000 -€1,256 -1.9% € 150,000 -€1,006 -1.3%
  • Net salary comparison: Married contractor, 1 salary, 2 children Gross Total change % change € 55,000 -€1,625 -4.1% € 75,000 -€2,025 -4.1% € 100,000 -€1,776 -3.0% € 125,000 -€1,526 -2.2% € 150,000 -€1,276 -1.6%
  • How do you regain financial control? 17/12/10 Noone Casey Budget 2011 Maximise Income Reduce costs Reduce taxes Reduce risk Contractor income subject to market rates Assess all personal costs Assess tax status Prompt timesheet approval & Invoice on time Additional sources of income Assess all business costs Review all credits & reliefs 3 rd party holding your money Use company structure Unknown co-directors
  • Regain Control with i-Finance
    • New concept to Irish contracting market
    • Managed service solution
    • One contractor one company
    • Real time access to your own data
      • Company & personal earnings
      • Bank balances
      • PAYE & VAT liabilities
    • Integrated timesheet/invoicing
    • We manage your paperwork
    17/12/10 Noone Casey Budget 2011
  • Benefits of i-Finance
    • Dashboard providing real time visibility with full control at your finger tips
    • Data processed by qualified team of Chartered Accountants
    • Taxes paid on time
    • CRO returns filed on time
    • Quick ,efficient & compliant set up
    17/12/10 Noone Casey Bud get 2011
  • Benefits of i-Finance (cont’d)
    • Individual savings/ investment planning
    • Individual tax planning
    • Cost effective
    • Data security
    • I-Finance is a Noone Casey company
    • Noone Casey working with CPL contractors since 1992
    • www.i-finance.ie
    17/12/10 Noone Casey Budget 2011
  • Personal financial review
    • Due to extreme financial implications of Budget 2011 for individuals, we are offering free personal financial review for all attending this seminar.
    • Contact
      • Phone 01 676 6476
      • Email [email_address] or
        • [email_address]
    17/12/10 Noone Casey Budget 2011
  • Reasons to be Cheerful Part 1
    • The 12.5% Brand
    • Workforce is young, skilled and adaptable
    • World’s Number 1 destination for FDI relative to population size (2010 IBM survey)
    • Home to 9 of the top 10 global ICT companies and 15 of the top 25 medical device firms
    • Vibrant indigenous competing on the world stage
    17/12/10 Noone Casey Budget 2011
  • Reasons to be Cheerful Part 2
    • ICT industry in Ireland employs 75,000 people and accounts for €50 billion of Irish exports
    • Ireland is the biggest net exporter in the EU of dairy ingredients
    • More than 1,000 engineering companies
    • The global hub for aircraft leasing
    • Tax Revenues for first 10 months ahead of schedule
    17/12/10 Noone Casey Budget 2011
  • Questions?
    • For further information check out
    • www.noonecasey.ie
    • www.taxation.ie
    • www.i-finance.ie
    17/12/10 Noone Casey Budget 2011