New tax credit for self-employed, increased minimum wage and reduced employer PRSI
Budget 2016 is good for job creation and good for local businesses.
“One in three jobs created in the economy come from small business, tradespeople and local employers. All of these self-employed business people will now be able to claim the Earned Income Tax Credit of €550. This will begin the process of tax equalisation for the self-employed and PAYE workers.
“Capital Gains Tax (CGT) has also been an issue for entrepreneurs who have built a successful business and want to sell it on. To assist them and reward their hard work, CGT will be reduced from 33% to 20% up to an overall limit of €1 million.
“Local retailers have been key drivers in the economic recovery; they have generated local employment and kept local communities alive. Budget 2016 will reduce costs and incentivise electronic payments, which up until now have been costing small retailers. These reductions which will come into effect on 9th December will save retailers an estimated €36 million in fees per year. The transaction limit on contactless payment cards is also being raised from €15 to €30 on the 31st of October.
“Minister Noonan has increased the entry point for employer PRSI by €20 per week to €376 per week making it more affordable for employers to take on staff. Budget 2016 has also approved the increase in the National Minimum Wage by 50 cent to €9.15 per hour from the 1st of January. More than 120,000 people will benefit from the increase.
“This Budget is a positive one after what has been a very difficult time for businesses and the self-employed. The last few budgets have been hard, but they made it possible for Ireland to exit the bailout, reduce our debts, and move into a real recovery.
“The top priority this year is to keep the recovery going in all parts of the country, while providing relief and better services. Part of this includes driving the local economy by supporting businesses and creating local jobs.
“This Budget is affordable, responsible and consistent with the Government's plan to eliminate Government borrowing by 2018. It will drive job creation and support local businesses in all parts of the country.”