Five things you need to know about tax, 4 January 2019

Jan 03, 2019

Read about the Budget 2019 changes that took effect in Ireland from 1 January, additional guidance from Revenue for PAYE Modernisation as well as HMRC’s tool to help decide whether a self-assessment tax return needs to be submitted for 2017/18.      


  1. Some of the changes brought about by Budget 2019 which took effect from 1 January 2019 include:


    Income Tax

    • The 4.75 percent rate of USC has reduced to 4.5 percent
    • The standard rate band threshold for all earnings raised by €750 i.e. single rate band increased to €35,300
    • The earned income credit for the self-employed has increased by €200 to €1,350.
    • Employers PRSI increases from 10.85 percent to 10.95 percent
    • The lower rate of employers PRSI will apply to income of €386 or less per week

    VAT, betting and excise duty

    • The special 9 percent VAT rate for the hospitality sector reinstated to its original rate of 13.5 percent
    • The rate of VAT on electronic publications falls from 23 percent to 9 percent 
    • Betting tax will increase from 1 percent to 2 percent
    • For non-hybrid vehicles, a 1 percent surcharge for diesel passenger vehicles registering in Ireland will apply across all vehicle registration tax (VRT) bands


  2. PAYE Modernisation launched on 1 January and Revenue have added a “Hot Topics” section to its website to help with the transition. In addition to the employer helpline, Revenue also have a dedicated webpage on and have published the New Employers Guide to PAYE to help with queries



  3. HMRC has launched an online tool for use to check whether a self-assessment tax return needs to be submitted for 2017/18
  4. Genuine HMRC contact and recognising phishing emails and texts sets out the latest phishing scams



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