New Tax Bands

simo28

I see the government are floating the idea of a new 30% tax band as a possible help to struggling working population. Have they said anywhere that this will take hold immediately after the budget or will workers have to wait till January to see the benefits (if there will be any if prices keep rising). Seems a risky play to put it out there as part of the wait till the budget strategy and then expect workers to wait till their pay check at the end of January.

Gant21

Whatever happens they will manage to screw it up.

dashoonage

https://www.boards.ie/discussion/comment/119272022#Comment_119272022

and the working population will end up paying for it.

Gant21

https://www.boards.ie/discussion/comment/119272042#Comment_119272042

That is a fact.

Sam Russell

Any change in income tax bands must wait until January, unless they backdate it to 2022 tax year.

Dividends are paid on a single date, so how would that work? Likewise, bonus payments are single date events. How would you apportion pay with a break in bands mid year?

Tax bands have to be whole year.

simo28

https://www.boards.ie/discussion/comment/119272279#Comment_119272279

They would want to make this clear to people or there will be a lot of ire. No doubt Sinn Fein will love it saying the government have stitched up workers again despite them knowing it all along themselves.

PaybackPayroll

If the Government waits until October to formally announce this, then it will be very difficult for payroll software developers to implement it in time for 1 Jan 2023.

The tax bands are central to any payroll system and effect pretty much everything.

This, as well as statutory sick pay, auto-enrolment and gender reporting, will be a crazy work load.

Maybe adjusting the existing USC bands and standard rate cut off point could have the same effect - without the upheaval.

squigglestrebor

Just increase the 2nd band to 50k.

KBurke85

https://www.boards.ie/discussion/comment/119272434#Comment_119272434

Payroll software providers im sure would get it well flagged if there was to be such a change. Just because something isn't formally announced doesn't mean work is not being to be ready

PaybackPayroll

https://www.boards.ie/discussion/comment/119272498#Comment_119272498

We find out the same time as everybody else.

L1011

https://www.boards.ie/discussion/comment/119272498#Comment_119272498

No, that has never and will never happen. The budget is not finalised that far in advance and they already have enough problems with it leaking.

Always been a rush for software providers (not just payroll - POS, medical billing, accountancy, anything affected by tax, state contributions etc) to update stuff for new tax year rules. In the days when the budget was in December and changes were applying January 1 it could be absolute mayhem.

murpho999

https://www.boards.ie/discussion/comment/119272042#Comment_119272042

Well that will always be the case as the working population are the only ones who pay income tax.

highgiant1985

https://www.boards.ie/discussion/comment/119285555#Comment_119285555

This brings back some memories/nightmares! 2008/2009 in particular with the income levy/Pension levy/emergency budget etc.... Everyone in working until 2am to try and get a release out. Nightmare stuff.

highgiant1985

https://www.boards.ie/discussion/comment/119272498#Comment_119272498

Can confirm 100% that we don't.

spontindeed

Varadkar will get it through other taxes. Vehicle Registration Tax (VRT) for example. You're not going to believe it's almost €4,000 VRT to import a 2017 Volkswagen Golf into Ireland.

The impending auto-enrollment of workers into a private pension will wipe out any gains. If the Government tries to auto-enroll me into a pension, I will opt out (you will only have 6 months to opt out).