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(V) ILLUSTRATIVE CASES
These cases deal only with the basic personal tax credits and the employee tax credit. 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. For illustrative purposes, some of the figures in the attached examples are rounded to the nearest euro.
Andrew
Andrew is single and employed as a waiter and is earning €14,000 per annum. He will gain €240 from the Budget.
|
2003 |
2004 |
Gross Income
Standard Rate Band
Income Tax liability (€14,000 @ 20%)
Less Tax Credits
Total Income Tax Due
PRSI
Levies
Total Liability
Net Cash Income
Deductions as a % of Gross Income |
€
14,000
28,000
2,800
2,320
480
0
0
480
13,520
3.4% |
€
14,000
28,000
2,800
2,560
240
0
0
240
13,760
1.7% |
Liam and Georgina
Liam and Georgina are a retired couple. Liam is aged 75 and Georgina is aged 70. Liam has an occupational pension of €31,000. After the Budget they will be outside the tax net. They will gain €400 from the Budget as a result of the tax changes.
|
2003 |
2004 |
Gross Income
Exemption Limits
Income Tax (€1,000@40%^)
Net Cash Income
Deductions as a % of Gross Income |
€
31,000
30,000
400
30,600
1.3% |
€
31,000
31,000
0
31,000
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
Joe and Sarah
Joe and Sarah are married with two children. Joe is employed as a salesman earning €40,000 while Sarah works in the home. They will gain €240 from the Budget.
|
2003 |
2004 |
Gross Income
Standard Rate Band
Income Tax liability
Less Tax Credits
Total Income Tax Due
PRSI
Levies
Total Liability
Net Cash Income
Deductions as a % of Gross Income |
€
40,000
37,000
8,660
4,610
4,050
1,336
800
6,186
33,814
15.5% |
€
40,000
37,000
8,660
4,850
3,810
1,336
800
5,946
34,054
14.9% |
Paul and Annemarie
Paul and Annemarie are a married couple with two children. Paul is a civil servant earning €35,000 and Annemarie is employed as an accountant and earning €45,000. They will gain €421 from the Budget.
|
2003 |
2004 |
Gross Income
Standard Rate Band
Income Tax liability
Less Tax Credits
Total Income Tax Due
PRSI
Levies
Total Liability
Net Cash Income
Deductions as a % of Gross Income |
€
80,000
56,000^
21,280
4,640
16,640
1,681
1,600
19,921
60,079
24.9% |
€
80,000
56,000^
21,280
5,120
16,160
1,740
1,600
19,500
60,500
24.4% |
^ With maximum transferability between spouses of €37,000
Martin and Karen
Martin and Karen are a married couple with three children. Martin is self employed and runs his own business and earns €35,000 and Karen is employed as a solicitor earning €65,000. They will gain €175 from the Budget.
|
2003 |
2004 |
Gross Income
Standard Rate Band
Income Tax liability
Less Tax Credits
Total Income Tax Due
PRSI
Levies
Total Liability
Net Cash Income
Deductions as a % of Gross Income |
€
100,000
56,000^
29,680
3,840
25,840
2,499
2,000
30,339
69,661
30.3% |
€
100,000
56,000^
29,680
4,080
25,600
2,564
2,000
30,164
69,836
30.2% |
^ With maximum transferability between spouses of €37,000
Denise
Denise is a widow aged 68, with a pension from her late husband's employment of €14,770. She is also in receipt of a widow's contributory pension of €8,102 which will increase to €8,700 in the Budget. She will gain €718 as a result of the tax and social welfare changes in the Budget.
|
2003 |
2004 |
Gross Income
Standard Rate Band
Income Tax liability
Less Tax Credits
Total Income Tax Due
PRSI
Levies
Total Liability
Net Cash Income
Deductions as a % of Gross Income |
€
22,872
28,000
4,574
2,825
1,749
0
0
1,749
21,123
7.6% |
€
23,470^
28,000
4,694
3,065
1,629
0
0
1,629
21,841
6.9% |
^The increase in Gross Income is as a result of the increase in social welfare payments.
Niamh
Niamh is single and has a five-year-old son. Niamh works as a hairdresser and earns €24,000. She will gain €240 from the Budget.
|
2003 |
2004 |
Gross Income
Standard Rate Band
Income Tax liability
Less Tax Credits
Total Income Tax Due
PRSI
Levies
Total Liability
Net Cash Income
Deductions as a % of Gross Income |
€
24,000
32,000
4,800
3,840
960
696
480
2,136
21,864
8.9% |
€
24,000
32,000
4,800
4,080
720
696
480
1,896
22,104
7.9% |
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