Budget 2013: Tax Facts & Figures

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Budget 2013 rate addition, which compensates unregistered farmers for VAT incurred, is being reduced from 5.2% to 4.8% with effect from 1 January 2013. CASH RECEIPTS BASIS Most traders account for VAT on sales on the basis of the invoices issued during a VAT period. This means that in many cases, VAT is payable to Revenue before the trader has received payment from its customer. Certain traders, whose turnover is below ���1m per annum, are entitled to account for VAT on sales calculated on the payments received in the VAT period. This can assist cash flow for SME businesses. The threshold for the use of the cash receipts basis will be increased from ���1m to ���1.25m with effect from 1 May 2013. ALCOHOL PRODUCTS TAX Excise duty on alcohol and tobacco products increases from midnight tonight (5 December). The increase applicable to a pint of beer or cider or a measure of spirits will be 10 cents (including VAT) while the duty on wine increases by ���1 (including VAT) for a 75cl bottle. TOBACCO PRODUCTS TAX The price of a packet of 20 cigarettes will increase by 10 cents (including VAT) while roll-your-own tobacco will increase by 50 cents (per 25 grams). AUTO DIESEL AND PETROL TAXES There is no increase in the rate of excise duty applying to petrol or diesel. A system to provide for rebates of auto-diesel duty will be introduced on 1 July 2013, for tax compliant licenced road hauliers. CARBON TAX A ���10 per tonne carbon tax will be applied to solid fuel with effect from 1 May 2013. It will increase to ���20 per tonne with effect from 1 May 2014. VEHICLE REGISTRATION TAX (VRT) Due to the drop in VRT revenue in the last number of years (following the introduction of the emissions based method of calculating VRT), it was announced in last year���s budget that a consultation process would take place with a view to revising the system. Following that process, a general increase in VRT rates and a restructuring of VRT Bands A and B will be introduced from 1 January 2013. Bands A and B have been subdivided into four and two sub-bands respectively, based on different levels of emissions. For example, the VRT rate applying to Band A has increased from 14% to a variety of rates (15% 18%) within the new bands A1-A4. The rate for the top band (G) remains unchanged at 36%. VRT reliefs currently in place for electric vehicles, hybrids etc are being retained until 31 December 2013. MOTOR TAX Increases will apply to motor tax rates from 1 January 2013. For example, the emissions based rate applying to the new Band A4 (emissions between 110g/km and 120g/km) will increase by ���40 from ���160 to ���200 while the highest Band (G) will increase by ���92 from ���2,258 to ���2,350. Increases will also apply to the older rates based on engine size with increases ranging from ���14 for a 1,000cc car to ���126 for a 3,001cc car. Motor tax on electric cars is being reduced (by ���37) to ���120. PENSIONS CHANGE TO THE MAXIMUM ALLOWABLE PENSION FUND With effect from 1 January 2014, tax relief for pension contributions will be capped in respect of pension schemes that deliver an annual pension in excess of ���60,000 per annum. There will be a consultation process as to how the changes will be implemented. TAX RELIEF Relief for pension deductions continues at the marginal rate of tax. There was speculation that relief would be restricted to a lower rate of tax. PRE-RETIREMENT ACCESS TO FUNDED ADDITIONAL VOLUNTARY CONTRIBUTIONS Individuals will be allowed a once-off option to withdraw up to 30% of the value of funded Additional Voluntary Contributions made to supplement retirement benefits. Withdrawals will be liable to tax at the individual���s marginal rate. This option will be available for 3 years from the passing of the Finance Act 2013. PENSION LEVY The Pension Levy announced as part of the Jobs Initiative will not be renewed after 2014. This leaflet is only a summary of the Budget Speech and is not intended to be a comprehensive guide. 05/12/12. Printed by Unique Publishing (01) 860 3477

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