Ready Reckoner – Post Budget 2015

Ready Reckoner - Post Budget 2015
Prepared by Statistics & Economic Research Branch, Revenue Commissioners
November 2014
Ready Reckoners are provided for the following taxes:
Income Tax & Universal Social Charge
Deposit Interest Retention Tax (DIRT)
Capital Gains Tax (CGT)
Capital Acquisition Tax (CAT)
Excise
Value Added Tax (VAT)
Pages
Page
Page
Page
Pages
Pages
2-10
11
12
13
14-17
18-21
Please note that the costings provided in this Ready Reckoner are estimates and should be treated as such.
Ready Reckoner costings assume no behavioural change from an increase or decrease in taxation.
Every reasonable effort has been made to ensure that the information provided is as accurate and clear as possible.
Revenue's Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html
Email: statistics@revenue.ie
1
Ready Reckoner
Income Tax & Universal Social Charge
These following costs / yields are based on 2015 estimates from the Revenue tax forecasting model using latest actual data
for the year 2012, adjusted as necessary for income, self-employment and employment trends in the interim.
The Income Tax Ready Reckoner covers the following:
Income earners by Income Tax and USC rates in 2015
Increases and decreases to Income Tax and USC rates
Increases to Income Tax credits
Widening of standard Income Tax rate bands
Increases to USC rate bands
Increases to Income Tax exemption limits
Indexation
Changes to Income Tax relief on pensions
Page
Page
Page
Page
Page
Page
Page
Page
2
3
4
5
6
7
8
9
10
Ready Reckoner
Income Earners by Income Tax and USC Rates in 2015
Number of
Taxpayer
Units*
433,600
1,025,900
881,700
183,400
1,285,400
223,700
648,700
648,700
2,341,200
Income Tax
Higher rate (40%)
Standard rate (20%)
Exempt
USC
8% rate
7% rate
3.5% rate
Exempt / 1.5% rate
Paying neither Income Tax or USC
Total Income Earners
% of
Taxpayer
Units
18
44
38
8
55
9
28
28
100
*Married persons or civil partners who have elected or who have been deemed to have elected for
joint assessment are counted as one tax unit.
3
Ready Reckoner
Increases and Decreases to Income Tax and USC Rates
Cost of 1% point decrease in Income Tax rates
Yield from 1% point increase in Income Tax rates
Cost of 1% point decrease in Universal Social Charge rates
20% rate
40% rate
-158
-226
20% rate
401
543
40% rate
158
225
Decrease 1.5% rate to 0.5%
-172
-235
Decrease 3.5% rate to 2.5%
-74
-101
-269
-368
Decrease 8% rate to 7%*
-70
-113
Increase 1.5% rate to 2.5%
172
235
Increase 3.5% rate to 4.5%
74
101
269
70
368
113
Decrease 7% rate to 6%
Yield from 1% point increase in Universal Social Charge rates
€ Million
First Year Full Year
-395
-536
Increase 7% rate to 8%
Increase 8% rate to 9%*
*Includes those paying the 3% surcharge for non-PAYE income that exceeds €100,000 in a year.
4
Ready Reckoner
€ Million
First Year Full Year
-56
-76
Cost of Increasing Income Tax Credits
Increase Single Persons Credit by €100
From €1,650 to €1,750
Increase Married Persons Credit by €200
From €3,300 to €3,500
-91
-126
Increase Widowed Persons Personal Credit by €100
From €1,650 to €1,750
-4.0
-5.6
Increase Lone Parent Credit by €100
From €1,650 to €1,750
-4.4
-6.0
Increase Widowed Persons Top up Credit by €100
From €540 to €640
-3.6
-5.0
Increase PAYE Credit by €50
From €1,650 to €1,700
-58
-74
Increase Home Carer’s Credit by €50
From €810 to €860
-2.7
-3.7
Increase Dependent Relative Credit by €20
From €70 to €90
-0.4
-0.5
Increase Incapacitated Child Credit by €100
From €3,300 to €3,400
-0.9
-1.3
-0.4
-0.6
Increase Widowed Parent Bereavement Credit by €100
-0.2
-0.2
Increase Age Credit
-7.7
-11
Increase Blind Persons Credit (incl Guide Dog)
By €500 for single person
From €1,650 to €2,150
By €1,000 for both spouses / civil partners blind
From €3,300 to €4,300
By €50 for single / widow
From €245 to €295
By €100 for married / civil partners
From €490 to €590
5
Ready Reckoner
Cost of Widening of Income Tax Standard Rate Bands
Increases in both the band for single / widowed persons and in the additional band (i.e., €23,800 band) currently available
to married / civil partnership 2 earner couples beyond the band limit of €41,800.
Band
€ Million
First Year Full Year First Year Full Year
First Year
Full Year
Single &
Married / Civil Partners
Total
Widowed
Increase*
2 Earner Couple
Cost
€100
-5.2
-7
-3.3
-4.4
-8.5
-11
€500
-26
-34
-16
-21
-42
-56
€1,000
-51
-68
-31
-41
-82
-109
€1,500
-76
-100
-45
-60
-121
-160
*The increase in the existing band of €23,800 currently available to married / civil partners 2 earner couples is doubled.
Married / civil partnership with 2 earners can still avail of the increased band rate, which is
aggregated between spouses / civil partners, bringing their total band available up to €67,600
(subject to a maximum individual standard rate band of €42,800 for either spouse / civil partner).
Increase in the existing standard rate band of €41,800 available to married / civil partnership couples.
First Year
Band
€ Million
Full Year First Year
Full Year
Married / Civil Partners
Increase*
1 Earner Couple
2 Earner Couple
€100
-1.9
-2.6
-3.5
-4.7
€500
-9.4
-13
-17
-24
€1,000
-19
-25
-34
-47
€1,500
-28
-38
-51
-69
*Band increases are applied to married / civil partnership 1 earner and married / civil partnership 2
earner couples.
Married / civil parnership 2 earner couples can still avail of the €67,600 tax band, subject to a
maximum individual standard rate band of €42,800 for either spouse / civil partner.
6
Ready Reckoner
Cost of Increasing USC Rate Bands
First €12,012 is charged at 1.5% *
From €12,012 to €17,576 is charged at 3.5% **
From €17,576 to €70,044 is charged at 7% ***
Above €70,044 is charged at 8%
Increase by €100 to €12,112
€ Million
First Year Full Year
3.5
4.8
Increase by €500 to €12,512
18
24
Increase by €1,000 to €13,012
35
48
Increase by €1,500 to €13,512
53
72
Increase by €100 to €12,112 and €17,676
8.4
12
Increase by €500 to €12,512 and €18,076
40
55
Increase by €1,000 to €13,012 and €18,576
79
108
Increase by €1,500 to €13,512 and €19,076
118
161
Increase by €100 to €17,676 and €70,144
4.9
6.7
Increase by €500 to €18,076 and €70,544
23
31
Increase by €1,000 to €18,576 and €71,044
44
60
Increase
Increase
Increase
Increase
Increase
66
0.7
1.3
2.7
6.1
89
0.9
1.9
3.9
8.7
by
by
by
by
by
€1,500 to €19,076 and €71,544
€500 to €70,544
€1,000 to €71,044
€2,000 to €72,044
€5,000 to €75,044
*In each case, the exemption threshold is also adjusted by the increase and the 7% rate continues to commence at €17,576.
**In each case, the exemption threshold is also adjusted by the increase and the 3.5% rate is applied to first €5,564 excess over the exemption
threshold (e.g., on incomes between €12,112 & €17,676).
***In each case, the exemption threshold remains at €12,012 and the 3.5% rate applies to incomes over €12,012, up to the increased 7% start point.
7
Ready Reckoner
Cost of Increasing Income Tax Exemption Limits
Aged 65 and over
By €100 for single / widow and €200 married
Child addition
€ Million
First Year Full Year
-2.4
-3.4
By €300 for single / widow and €600 married
-7.2
-10
Increase limit by €100 per child (all children)
-0.1
-0.1
Increase limit by €300 per child (all children)
-0.2
-0.2
8
Ready Reckoner
Cost of Indexation
Indexation at 1%
Personal Tax Credits (incl Home Carer's Credit) with rate bands
€ Million
First Year Full Year
-72
-98
Exemption limits, Personal Tax Credits with rate bands
-76
-104
PAYE Credit, Exemption limits, Personal Tax Credits with rate bands
USC rate bands
-96
-13
-129
-18
9
Ready Reckoner
Changes to Income Tax Relief on Pensions
Cost of decreasing the ceiling for occupational pension schemes, RACs and PRSAs and / or reducing the marginal effective
rate applicable to these reliefs.
Ceiling
€115,000
€110,000
€105,000
€100,000
€95,000
€90,000
€85,000
€80,000
€75,000
€70,000
€65,000
€60,000
40%
0.0*
9.0
19
28
39
51
64
78
93
109
127
147
€ Million
Rate
33%
127
134
142
150
159
169
180
191
203
217
232
248
34%
109
116
124
133
142
152
163
174
187
201
217
234
*Current rate and ceiling.
10
30%
181
188
195
202
210
219
229
239
250
263
276
291
20%
362
366
371
376
381
387
394
400
408
417
426
435
Ready Reckoner
Deposit Interest Retention Tax (DIRT)
Reduction in the Standard Rate of DIRT
Increase in the Standard Rate of DIRT
From 41% to 40%
€ Million
Full Year
-13
From 41% to 38%
-38
From 41% to 36%
-63
From 41% to 42%
13
From 41% to 44%
38
From 41% to 46%
63
11
Ready Reckoner
Capital Gains Tax (CGT)
Reduction in the CGT Rate (on or after 15 October 2015)
Increase in the CGT Rate (on or after 15 October 2015)
Increase in Annual Exemption
From 33% to 32%
€ Million
Full Year
2015
-1
-15
From 33% to 31%
-3
-29
From 33% to 28%
-7
-74
From 33% to 34%
1
15
From 33% to 35%
3
29
From 33% to 38%
7
74
From €1,270 to €1,770
--
-2.0
12
Ready Reckoner
Capital Acquisitions Tax (CAT)
Reduction in the CAT Rate (on or after 15 October 2015)
Increase in the CAT Rate (on or after 15 October 2015)
Increase in tax free thresholds (on or after 15 October 2015)*
Decrease in tax free thresholds (on or after 15 October 2015)*
Reduce Agricultural Relief (on or after 15 October 2015)
Reduce Agricultural Relief (on or after 15 October 2015)
From 33% to 32%
€ Million
Full Year
2016
-10
-11
From 33% to 28%
-47
-55
From 33% to 23%
-95
-110
From 33% to 34%
10
11
From 33% to 38%
47
55
From 33% to 43%
95
110
By 1%
-1.6
-1.9
By 5%
-8
-10
by 10%
-17
-19
By 1%
1.6
1.9
By 5%
8
10
by 10%
17
19
From 90% to 80%
7
8
From 90% to 60%
21
24
From 90% to 50%
28
32
From 90% to 80%
9
10
From 90% to 60%
27
31
From 90% to 50%
36
41
*Thresholds are currently €225,000 for Category A, €30,150 for Category B and €15,075 for Category C.
13
Ready Reckoner
Excise
The Excise Ready Reckoner covers the following:
Oils
Alcohol
Tobacco
Page 15
Page 16
Page 17
14
Ready Reckoner
Oils
Unleaded petrol (per litre)
Increase by 1 cent
€ Million
Full Year
13
Increase by 3 cent
40
Increase by 5 cent
66
Increase by 10 cent
Auto diesel (per litre)
130
Increase by 1 cent
22
Increase by 3 cent
65
Increase by 5 cent
107
Increase by 10 cent
213
Both increase amounts and additional revenue estimates are VAT inclusive.
15
Ready Reckoner
Alcohol
Beer (per pint)
Spirits (per half glass)
Cider & perry (per pint)
Wine (per 75 cl)
Increase by 1 cent
€ Million
Full Year
7
Increase by 3 cent
20
Increase by 5 cent
33
Increase by 10 cent
65
Increase by 1 cent
3
Increase by 3 cent
10
Increase by 5 cent
17
Increase by 10 cent
33
Increase by 1 cent
1
Increase by 3 cent
3
Increase by 5 cent
5
Increase by 10 cent
9
Increase by 5 cent
3
Increase by 10 cent
6
Increase by 25 cent
14
Increase by 50 cent
26
Both increase amounts and additional revenue estimates are VAT inclusive.
16
Ready Reckoner
Tobacco
Cigarettes (per pack of 20)
Increase by 5 cent
€ Million
Full Year
6
Increase by 10 cent
13
Increase by 25 cent
32
Increase by 50 cent
63
Both increase amounts and additional revenue estimates are VAT inclusive.
Economic research conducted by Revenue has shown that (further) cigarette
price rises, particularly at the higher end of the range, are unlikely to
increase Excise receipts from the sale of cigarettes (the largest source of
Excise Duty on tobacco). And this is supported by experience in recent
years. In economic terms, the demand for Irish Duty paid cigarettes has
moved to become much more elastic in nature, this implies an increase in
price will lead to a proportionately larger decrease in consumption of Irish
Duty paid cigarettes resulting in an overall decrease in cigarette Excise
receipts.
17
Ready Reckoner
Value Added Tax (VAT)
The VAT Ready Reckoner covers the following:
Activity by VAT rate
Increases and decreases to VAT rates
Increases in VAT registration thresholds
Page 19
Page 20
Page 21
18
Ready Reckoner
% of
Activity
% of Tax
Receipts
37
58
Reduced rate of 13.5% applies to
33
31
Reduced rate of 9% applies to
18
11
Zero rate applies applies to
12
0
Activity by VAT Rate
Standard rate of 23% applies to
19
Ready Reckoner
Increases and Decreases to VAT Rates
9% Reduced Rate
1% Increase / Decrease
€ Million
Full Year
+/- 124
CPI
Effect*
+/- 0.10
13.5% Reduced Rate
1% Increase / Decrease
+/- 233
+/- 0.07
23% Standard Rate
1% Increase / Decrease
0% to 5%
+/- 257
+/- 0.34
409
0.56
Zero Rate Increased
0% to 9%
737
1.01
0% to 13.5%
1,105
1.51
0% to 23%
1,883
2.57
Zero, 9%, 13.5% & 23% rates merged to a 15.4% rate
0.0
-0.15
9%, 13.5% & 23% rates merged to a 17.5% rate
0.0
-0.77
Restructuring the VAT system on a revenue-neutral basis
*Percentage effect on consumer price index (CPI).
20
Ready Reckoner
Increases in VAT Registration Thresholds
Change in Services Threshold
€37,500 to €50,000
Change in Goods Threshold
€ Million
Full Year
64
€37,500 to €75,000
247
€37,500 to €87,500
366
€37,500
€37,500
€75,000
€75,000
€75,000
€75,000
€75,000
to
to
to
to
to
to
to
21
€100,000
€125,000
€100,000
€150,000
€175,000
€200,000
€250,000
503
833
81
311
461
634
1,049