14th October 2021
In addition to our analysis of education sector commitments in Budget 2022, the Irish National Teachers’ Organisation (INTO) is providing below an overview of general aspects of the budget which may be of interest to our members.
- Income tax rates will stay the same (20% and 40%).
- The standard rate tax band (the amount that can be earned at the lower rate of tax) will be increased by €1,500 to €36,800 for single individuals and to €45,800 for married couples/civil partners with one income earner.
- Increase of €50 for the following tax credits:
- Personal tax credit
- Employee tax credit
- Earned income credits
- Widowed Person or Surviving Civil Partner (without dependent child) tax credit
- Principals and teachers are reminded to claim their flat-rate expenses, and tax relief for Teaching Council fees. Outstanding claims for 2017 must be submitted to revenue before the end of December 2021.
- The ceiling of the 2% Universal Social Charge (USC) band will increase by €608 from €20,687 to €21,295. No changes to other bands.
- Carbon Tax will rise by €7.50 per tonne. This was effective from midnight (October 12, 2021) on petrol and diesel. There was an increase of 2 cents per litre for petrol and 2.5 cents per litre for diesel. This increase will be applied to all other fuels from May 2022.
- Increase in Vehicle Registration Tax (VRT) charge from 1 January 2022 based on Nitrogen Oxide emissions over 110g /km.
- €5,000 Vehicle Registration Tax (VRT) Relief until end of 2023 for Battery Electric Vehicles.
- Additional €202 million fund established for people to improve energy efficiency in their homes.
- An extension of the Help-to-Buy scheme to the end of 2022, with a full review to be completed in 2022.
- There will be an extension of the rental properties’ relief for pre-letting expenditure for an additional 3 years, up to the end of 2024, to encourage letting of vacant properties.
- €5 increase in main weekly welfare payments and state pensions.
- Parent’s Leave and Parent’s Benefit to increase from 5 weeks to 7 weeks from July 2022.
- The threshold for the drugs payment scheme will reduce from €114 to €100 per month.
- Free GP care extended to 6 and 7-year-olds.
- Youth travel card will be introduced for 19–23-year-olds to enable 50% discount on fares.
- Free contraception for women aged 17-25.
Disclaimer: The above content is provided for information only and the INTO is not responsible for any inaccuracies. Members are advised to make their own enquiries with Revenue directly.