| |
| CASE STUDIES |
| |
| These cases deal with the basic personal tax credit,
the employee tax credit and the standard rate band.
Discretionary tax reliefs such as mortgage interest
relief, or relief on rent paid, or charges such
as benefits in kind are not taken into account.
However, the gain from child benefit and the new
Early Childcare Supplement are also included. Some
of the figures in the following examples are rounded
to the nearest euro.o. |
| |
| KATIE |
| Katie is single and employed
as a waitress at the minimum wage and is earning
€15,515 per annum. She will gain €609
from the Budget. |
| |
2005 EURO
|
2006 EURO |
| Gross Income |
15,515 |
15,515 |
| Income Tax |
253 |
0 |
| PRSI & levies |
356 |
0 |
| Net Cash Income |
14,906 |
15,515 |
| Deductions as % of Gross Income |
3.9% |
0% |
|
| |
| CHARLIE |
| Charlie is single and employed
as a factory worker, earning €22,000
per annum. The increase in the Health levy
threshold, along with the increase in credits,
means that he will gain €710 from the
Budget. |
| |
2005 EURO
|
2006 EURO |
| Gross Income |
22,000 |
22,000 |
| Income Tax |
1,550 |
1,280 |
| PRSI & levies |
1,056 |
616 |
| Net Cash Income |
19,394 |
20,104 |
| Deductions as % of Gross Income |
11.8% |
8.6% |
|
| |
| JACK
& JILL |
| Jack and Jill are a retired
couple. Jill is aged 71 and Jack is aged 72.
Jack has an occupational pension of €34,000.
After the Budget they will be outside the
tax net. They will gain €400 from the
Budget as a result of the tax changes. |
| |
2005
EURO |
2006
EURO |
| Gross Income |
34,000 |
34,000 |
| Income Tax* |
400 |
0 |
| PRSI & levies |
0 |
0 |
| Net Cash Income |
33,600 |
34,000 |
| Deductions as % of Gross Income |
1.2% |
0% |
|
| |
*marginal relief rate of 40% payable on income
in excess of the exemption limits
Note: like the majority of those over 65 it is assumed
that there is no liability for PRSI |
| |
| MORGAN
& CATHERINE |
| Morgan and Catherine are married
with two children. Conor is 3 years old and
Darragh is six months. Catherine works in
the home and Morgan is employed as a credit
controller earning €41,000. They will
gain €892 from the Budget in income tax
and PRSI/levy changes. As well as gaining
€151 from child benefit increases, they
also will receive the new early childcare
supplement for Conor and Darragh of €250
per quarter per child. The universal payment
is effective from the second quarter of 2006.
|
| |
2005
EURO |
2006
EURO |
| Gross Income |
41,000 |
41,000 |
| Income Tax |
3,572 |
2,680 |
| PRSI & levies |
2,196 |
2,196 |
| Net Cash Income |
35,232 |
36,124 |
| Deductions as % of Gross Income |
14.1% |
11.9% |
| |
|
|
| Gain from Child Benefit Increases(9
months of increase) |
|
151 |
| Early Childcare Supplement effective
from second quarter;€250 per quarter
per child up to the child’s sixth birthday |
|
1,500 |
| Total Gain |
|
2,543 |
|
| |
| ANN
& DONAL |
| Anne and Donal are a married
couple with two children. Sean is 3 years
old and Ciara is 7 years old. Ann is an engineer
earning €50,000 and Donal is employed
as a civil servant earning €30,000. They
will gain €1,603 from the Budget in income
tax and PRSI/levy changes. As well as gaining
€151 from child benefit increases, they
also will receive the new early childcare
supplement for Sean which is €250 per
quarter per child. The universal payment is
effective from the second quarter of 2006. |
| |
2005
EURO |
2006
EURO |
| Gross Income |
80,000 |
80,000 |
| Income Tax* |
14,964 |
13,280 |
| PRSI & levies |
3,392 |
3,473 |
| Net Cash Income |
61,644 |
63,247 |
| Deductions as % of Gross Income |
22.9% |
20.9% |
| |
|
|
| Gain from Child Benefit Increases(9
months of increase) |
|
151 |
| Early Childcare Supplement effective
from second quarter;€250 per quarter
per child up to the child’s sixth birthday |
|
750 |
| Total Gain |
|
2,504 |
|
| |
| AOIFE
& GERRY |
| Aoife and Gerry are a married
couple with three children. Louise is 6 months,
Sile is 2 years and Laura is 4 years old.
Gerry is self employed, runs his own business
and earns €35,000. Aoife is employed
as a solicitor earning €65,000. They
will gain €1,378 from the Budget in income
tax and PRSI/levy changes. As well as gaining
€221 from child benefit increases, they
also will receive the new early childcare
supplement for Louise, Sile and Laura which
is €250 per quarter per child. The universal
payment is effective from the second quarter
of 2006. |
| |
2005
EURO |
2006
EURO |
| Gross Income |
100,000 |
100,000 |
| Income Tax |
24,634 |
23,170 |
| PRSI & levies |
4,635 |
4,721 |
| Net Cash Income |
70,731 |
72,109 |
| Deductions as % of Gross Income |
29.3% |
27.9% |
| |
|
|
| Gain from Child Benefit Increases(9
months of increase) |
|
221 |
| Early Childcare Supplement effective
from second quarter;€250 per quarter
per child up to the child’s sixth birthday |
|
2,250 |
| Total Gain |
|
3,849 |
|
| |
| MAURA |
| Maura is a widow aged 68, with
a pension from her late husband’s employment
of €15,000. She is also in receipt of
a widow’s contributory pension of €9,324
which will increase to €10,052 in the
Budget. She will gain €997 as a result
of the tax and social welfare changes in the
Budget. |
| |
2005
EURO |
2006
EURO |
| Gross Income |
24,324 |
25,052 |
| Income Tax |
1,410 |
1,141 |
| PRSI & levies |
0 |
0 |
| Net Cash Income |
22,914 |
23,911 |
| Deductions as % of Gross Income |
5.8% |
4.6% |
|
| |
| |
| NOREEN |
| Noreen is single and has a three-year-old
son, Noel. Noreen works as a hairdresser and
earns €30,000. SHe will gain €320
from the Budget in income tax and PRSI/levy
changes. As well as gaining €76 from
child benefit increases, she also will receive
the new early childcare supplement for Noel
which is €250 per quarter per child.
The universal payment is effective from the
second quarter of 2006. |
| |
2005
EURO |
2006
EURO |
| Gross Income |
30,000 |
30,000 |
| Income Tax |
1,570 |
1,250 |
| PRSI & levies |
1,536 |
1,536 |
| Net Cash Income |
26,894 |
27,214 |
| Deductions as % of Gross Income |
10.4% |
9.3% |
| |
|
|
| Gain from Child Benefit Increases(9
months of increase) |
|
76 |
| Early Childcare Supplement effective
from second quarter;€250 per quarter
per child up to the child’s sixth birthday |
|
750 |
| Total Gain |
|
1,146 |
|
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