There are three measures in Budget 2018 that may reduce a farmer’s tax bill.Earned Income Tax Credit
There are three measures in Budget 2018 that may reduce a farmer’s tax bill.
Earned Income Tax Credit
The Earned Income Tax Credit applicable to self-employed taxpayers will rise by €200 to €1,150. This means an equivalent saving for each farmer.
Higher tax rate threshold
The 40% tax rate applies from €34,550, instead of €33,800 previously. This represents a €300 tax cut.
Thanks to KPmG, you can now estimate your 2018 income tax bill and compared it with this year's in the calculator below.
USC cuts
In addition to the income tax changes above:
The standard USC rate is cut from 2.5% to 2%. This represents a €5 saving for every €1,000 earned within the €13,000 to €19,372 band. The maximum threshold for the standard rate increases from €18,772 to €19,372. This only represents a €16.50 annual saving.The higher USC rate drops from 5% to 4.75%. This means a €2.50 cut for every €1,000 earned in the €19,372 to €70,004 band. Read more
Budget 2018: the key measures hitting farmers’ pockets
Full coverage: Budget 2018
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