Irish Budget Summary - For UK Budget 2011 summary

So Budget 2011 has been and gone. As expected, the Budget was one of the harshest ever recalled. So how has it impacted on you? Our 2011 Budget Calculator will let you know how your take-home pay has been affected. We know you`ve heard more than enough bad news this week so we`ve started with the more palatable parts of the Budget to ease you in gently. Read below for a summary of the main points and don`t forget to apply for your tax back.

The Good News

• No cuts to State pension in 2011
• An additional 15,000 activation places and supports for the unemployed to be provided
• Medical and dental expense tax relief has not been affected
• Relief in respect of tuition fees untouched
• All households in receipt of the fuel allowance will receive an extra €40 in view of the harsh weather
• People on the new minimum wage will not be brought into the tax net
• Air travel tax reduced to €3
• 12.5 % corporation tax rate maintained
• Employment and Investment Incentive scheme to be introduced replacing the BES scheme
• No increases on cigarettes or alcohol
• Relief for energy efficient measures to be introduced

The Bad News

• Social Welfare payments for those of working age are to be reduced by €8 per week (this includes individuals in receipt of jobseekers benefit, maternity benefit disability benefit etc)
• Jobseeker`s allowance and supplementary welfare allowance for those aged 22-24 will be reduced by €6 per week
• Increase in petrol by 4c and diesel by 2c.
• DIRT charged on ordinary savings accounts is to hike up to 27% and on other long term investment policies up to 30%.
• Stamp duty thresholds have been abolished and a flat rate of 1% now applies to all residential properties under €1,000,000 and 2% in excess of this, seeing the abolition of first-time buyers relief.
• All property based incentives schemes are to be abolished by 2014.
• Abolition of trade union subscription reliefs from January 2011
• PRSI rate for the self employed increased from 3% to 4%
• PRSI rate for public servants on modified rates increased to 4% on income over €75,036
• Tax-free retirement lump sums are being reduced to €200,000 with any amount in excess of that being subject to tax at 20%.
• The maximum tax-relievable contributions for pension schemes will be reduced from €150,000 per annum to €115,000 per annum.

For more detailed analysis, check out the taxback.com blog and don`t forget to claim back your 4-year tax relief while you still can.