Budget 2011 Anthony Casey Noone Casey 8 December 2010
Introduction <ul><li>Anthony Casey, partner in Noone Casey Chartered Accountants </li></ul><ul><li>Advising IT contractors...
Budget 2011 17/12/10 Noone Casey Budget 2011
Budget 2011 <ul><li>We were told it would be  </li></ul><ul><ul><li>The most onerous budget in decades </li></ul></ul><ul>...
One Slide Summary <ul><ul><li>Lowering of tax threshold  </li></ul></ul><ul><ul><li>Reduction in tax credits </li></ul></u...
Broadening the tax base  <ul><li>Income tax </li></ul><ul><ul><li>No increase in tax rates </li></ul></ul><ul><ul><li>Lowe...
Broadening the tax base (cont’d) <ul><li>New ‘universal social contribution’  </li></ul><ul><ul><li>Will replace the Healt...
Abolition of Reliefs <ul><li>Rent Relief to be phased out </li></ul><ul><li>Patent Royalties exemption effective from 24 N...
Corporation tax <ul><li>Renewed commitment to 12.5% rate </li></ul><ul><li>Sends positive message to multi nationals in Ir...
Excise Taxes <ul><li>Petrol up 4c per litre </li></ul><ul><li>Diesel up 2c per litre </li></ul><ul><li>Air Travel tax revi...
Value Added Tax <ul><li>No change in Standard rate at 21%  </li></ul><ul><li>No change in Lower rate at13.5%  </li></ul><u...
Social Welfare cutbacks <ul><li>Child benefit Down €10 for 1 st  2 children </li></ul><ul><li>Old age pension ‘Frozen’ </l...
Miscellaneous <ul><li>Stamp Duty on residential property </li></ul><ul><ul><li>1% to €1m, 2% thereafter </li></ul></ul><ul...
Net salary comparison:  Single person, contractor Gross Total change % change € 55,000 -€1,355 -3.9% € 75,000 -€1,755 -4.0...
Net salary comparison:  Married contractor, 1 salary, 2 children Gross Total change % change € 55,000 -€1,625 -4.1% € 75,0...
How do you regain financial control? 17/12/10 Noone Casey Budget 2011 Maximise Income Reduce costs Reduce taxes Reduce ris...
Regain Control with i-Finance <ul><li>New concept to Irish contracting market </li></ul><ul><li>Managed service solution  ...
Benefits of i-Finance <ul><li>Dashboard providing real time visibility with full control at your finger tips </li></ul><ul...
Benefits of i-Finance (cont’d)  <ul><li>Individual savings/ investment planning </li></ul><ul><li>Individual tax planning ...
Personal financial review <ul><li>Due to extreme financial implications of Budget 2011 for individuals, we are offering fr...
Reasons to be Cheerful Part 1 <ul><li>The 12.5% Brand </li></ul><ul><li>Workforce is young, skilled and adaptable </li></u...
Reasons to be Cheerful Part 2 <ul><li>ICT industry in Ireland employs 75,000 people and accounts for €50 billion of Irish ...
Questions? <ul><li>For further information check out </li></ul><ul><li>www.noonecasey.ie </li></ul><ul><li>www.taxation.ie...
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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

    1. 1. Budget 2011 Anthony Casey Noone Casey 8 December 2010
    2. 2. Introduction <ul><li>Anthony Casey, partner in Noone Casey Chartered Accountants </li></ul><ul><li>Advising IT contractors since 1992 </li></ul><ul><li>Work closely with CPL to provide optimum tax efficient services to contractors </li></ul>17/12/10 Noone Casey Budget 2011
    3. 3. Budget 2011 17/12/10 Noone Casey Budget 2011
    4. 4. Budget 2011 <ul><li>We were told it would be </li></ul><ul><ul><li>The most onerous budget in decades </li></ul></ul><ul><ul><li>Increased taxes </li></ul></ul><ul><ul><li>Social welfare cutbacks </li></ul></ul><ul><ul><li>IMF/EU </li></ul></ul><ul><li>So, what is in the budget? </li></ul><ul><li>Implications for pension planning </li></ul><ul><li>Regaining financial control </li></ul><ul><li>Questions </li></ul>17/12/10 Noone Casey Budget 2011
    5. 5. One Slide Summary <ul><ul><li>Lowering of tax threshold </li></ul></ul><ul><ul><li>Reduction in tax credits </li></ul></ul><ul><ul><li>New Universal Social Contribution </li></ul></ul><ul><ul><li>Abolition of reliefs </li></ul></ul><ul><ul><li>Restrictions in pension funding </li></ul></ul><ul><ul><li>Increased excise duties </li></ul></ul>17/12/10 Noone Casey Budget 2011
    6. 6. Broadening the tax base <ul><li>Income tax </li></ul><ul><ul><li>No increase in tax rates </li></ul></ul><ul><ul><li>Lowering of thresholds by 10% </li></ul></ul><ul><ul><ul><li>€ 18,300 to €16,470 (lower rate) </li></ul></ul></ul><ul><ul><ul><li>€ 36,400 to €32,800 (higher rate) </li></ul></ul></ul><ul><ul><li>All credits reduced by 10% </li></ul></ul><ul><ul><li>% of taxpayers in relevant tax bands       </li></ul></ul><ul><ul><ul><li>No tax 43.9% down to 37.9% </li></ul></ul></ul><ul><ul><ul><li>Standard rate 41.8% up to 44% </li></ul></ul></ul><ul><ul><ul><li>Higher rate   14.3% up to 18.1% </li></ul></ul></ul>17/12/10 Noone Casey Budget 2011
    7. 7. Broadening the tax base (cont’d) <ul><li>New ‘universal social contribution’ </li></ul><ul><ul><li>Will replace the Health Levy and the Income Levy. </li></ul></ul><ul><ul><li>Will apply to all income; no reliefs or credits </li></ul></ul><ul><ul><li>Rates: </li></ul></ul><ul><ul><ul><li>Total income below €4,004 0% </li></ul></ul></ul><ul><ul><ul><li>Income up to €10,036 2% </li></ul></ul></ul><ul><ul><ul><li>Income between €10,036 </li></ul></ul></ul><ul><ul><ul><li>and €16,016 4% </li></ul></ul></ul><ul><ul><ul><li>Income over €16,016 7% </li></ul></ul></ul><ul><ul><li>PRSI for self employed/directors </li></ul></ul><ul><ul><ul><li>Up from 3 to 4% </li></ul></ul></ul>17/12/10 Noone Casey Budget 2011
    8. 8. Abolition of Reliefs <ul><li>Rent Relief to be phased out </li></ul><ul><li>Patent Royalties exemption effective from 24 November </li></ul><ul><li>Artist exemption (€40k limit) </li></ul><ul><li>Tax relief on loans to acquire shares in certain companies </li></ul><ul><li>Approved share option schemes </li></ul><ul><li>Property based reliefs </li></ul><ul><ul><li>S23 only allowed against specific property </li></ul></ul><ul><ul><li>Passive eg Hotel/Nursing Homes only allowed against specific property </li></ul></ul>17/12/10 Noone Casey Budget 2011
    9. 9. Corporation tax <ul><li>Renewed commitment to 12.5% rate </li></ul><ul><li>Sends positive message to multi nationals in Ireland </li></ul><ul><li>Start up company exemption continued to 2014 </li></ul>17/12/10 Noone Casey Budget 2011
    10. 10. Excise Taxes <ul><li>Petrol up 4c per litre </li></ul><ul><li>Diesel up 2c per litre </li></ul><ul><li>Air Travel tax revised to€3 from 1 March 2011 </li></ul><ul><li>Vehicle Registration Tax </li></ul><ul><ul><li>Extension of scrappage scheme to 30 June 2011 </li></ul></ul><ul><ul><li>Extension of VRT relief for hybrids </li></ul></ul>17/12/10 Noone Casey Budget 2011
    11. 11. Value Added Tax <ul><li>No change in Standard rate at 21% </li></ul><ul><li>No change in Lower rate at13.5% </li></ul><ul><li>UK VAT rate increasing from 17.5% to 20% on 4 Jan 2011 </li></ul>17/12/10 Noone Casey Budget 2011
    12. 12. Social Welfare cutbacks <ul><li>Child benefit Down €10 for 1 st 2 children </li></ul><ul><li>Old age pension ‘Frozen’ </li></ul><ul><li>Unemployment benefit Reductions </li></ul><ul><li>Carers /disability allowance Reduced </li></ul>17/12/10 Noone Casey Budget 2011
    13. 13. Miscellaneous <ul><li>Stamp Duty on residential property </li></ul><ul><ul><li>1% to €1m, 2% thereafter </li></ul></ul><ul><ul><li>All other reliefs abolished </li></ul></ul><ul><li>DIRT up to 27% </li></ul><ul><li>CGT - expect increases for 2012 & thereafter </li></ul><ul><li>CAT – Group thresholds reduced by 20% </li></ul>17/12/10 Noone Casey Budget 2011
    14. 14. 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%
    15. 15. 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%
    16. 16. 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
    17. 17. Regain Control with i-Finance <ul><li>New concept to Irish contracting market </li></ul><ul><li>Managed service solution </li></ul><ul><li>One contractor one company </li></ul><ul><li>Real time access to your own data </li></ul><ul><ul><li>Company & personal earnings </li></ul></ul><ul><ul><li>Bank balances </li></ul></ul><ul><ul><li>PAYE & VAT liabilities </li></ul></ul><ul><li>Integrated timesheet/invoicing </li></ul><ul><li>We manage your paperwork </li></ul>17/12/10 Noone Casey Budget 2011
    18. 18. Benefits of i-Finance <ul><li>Dashboard providing real time visibility with full control at your finger tips </li></ul><ul><li>Data processed by qualified team of Chartered Accountants </li></ul><ul><li>Taxes paid on time </li></ul><ul><li>CRO returns filed on time </li></ul><ul><li>Quick ,efficient & compliant set up </li></ul>17/12/10 Noone Casey Bud get 2011
    19. 19. Benefits of i-Finance (cont’d) <ul><li>Individual savings/ investment planning </li></ul><ul><li>Individual tax planning </li></ul><ul><li>Cost effective </li></ul><ul><li>Data security </li></ul><ul><li>I-Finance is a Noone Casey company </li></ul><ul><li>Noone Casey working with CPL contractors since 1992 </li></ul><ul><li>www.i-finance.ie </li></ul>17/12/10 Noone Casey Budget 2011
    20. 20. Personal financial review <ul><li>Due to extreme financial implications of Budget 2011 for individuals, we are offering free personal financial review for all attending this seminar. </li></ul><ul><li>Contact </li></ul><ul><ul><li>Phone 01 676 6476 </li></ul></ul><ul><ul><li>Email [email_address] or </li></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul>17/12/10 Noone Casey Budget 2011
    21. 21. Reasons to be Cheerful Part 1 <ul><li>The 12.5% Brand </li></ul><ul><li>Workforce is young, skilled and adaptable </li></ul><ul><li>World’s Number 1 destination for FDI relative to population size (2010 IBM survey) </li></ul><ul><li>Home to 9 of the top 10 global ICT companies and 15 of the top 25 medical device firms </li></ul><ul><li>Vibrant indigenous competing on the world stage </li></ul>17/12/10 Noone Casey Budget 2011
    22. 22. Reasons to be Cheerful Part 2 <ul><li>ICT industry in Ireland employs 75,000 people and accounts for €50 billion of Irish exports </li></ul><ul><li>Ireland is the biggest net exporter in the EU of dairy ingredients </li></ul><ul><li>More than 1,000 engineering companies </li></ul><ul><li>The global hub for aircraft leasing </li></ul><ul><li>Tax Revenues for first 10 months ahead of schedule </li></ul>17/12/10 Noone Casey Budget 2011
    23. 23. Questions? <ul><li>For further information check out </li></ul><ul><li>www.noonecasey.ie </li></ul><ul><li>www.taxation.ie </li></ul><ul><li>www.i-finance.ie </li></ul>17/12/10 Noone Casey Budget 2011

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