What’s on the cards on Tuesday

THE year will end with a €1billion corpora- tion tax boost to Government coffers, it was confirmed in the Budget estimates published late last night.

A single company, understood to be a tech giant, has chosen to pay €700million in a single tranche this year in order to frontload its liability under new accounting rules. The money is a once-off.

However, the €1billion bonanza is not set to be repeated and much of the money is expected to cover the €700million overrun in Health spending.

While the Budget will not be announced until Tuesday of next week, firmly on the cards are:

A reduction in the middle rate of USC from 4.75% to at least 4.5%. It is paid by all taxpayers on incomes between €19,000 and €70,000.

An increase in the €34,550 income threshold for the higher rate of tax, to possibly €35,000. The average wage is now nearly €45,000, meaning most ordinary workers are paying some of their income at the higher rate.

An expected rise to the Home Carer’s Tax Credit, which is paid to single-income families in respect of the stay-at-home spouse. It could increase from €1,200 to €1,500.

Increase in the self-employed tax credit. Currently at €11,500, the last deficit of €500 in comparison to PAYE workers is expected to be eliminated on Tuesday.

Improvements to the capitation grant to schools.

Enhanced Capital Gains Tax exemptions for entrepreneurs.

A 2% reduction in the DIRT tax to 35%. Already promised.

Mortgage Interest Relief to continue to taper towards abolition.

VRT rebate for electric and hybrid vehicles expected to be extended.

Likely increase in carbon tax, which will mean increases in fossil fuels such as petrol and diesel.

The 9% special VAT rate for the hospitality sector, originally a ‘temporary’ measure, expected to increase to at least 11%, but still below the former 13.5% level.

Social welfare increases expected to be of the order of €5 a week, but hikes could be deferred to March 2019.

Additional home help hours and packages.