Budget 2025 Summary
Key Takeaways from Budget 2025 for Small and Medium-Sized Businesses
Budget 2025, presented by Minister for Finance Jack Chambers, introduces several impactful changes aimed at benefiting small and medium-sized businesses. From adjustments to income thresholds to new relief measures, this budget brings about significant updates that could directly affect your business and its financial outlook.
Here, we highlight some of the most notable measures:
The standard-rate cut-off point for a single person has increased from €42,000 to €44,000.
The USC middle rate has been reduced from 4pc to 3.0pc.
The 2pc USC ceiling band has increased from €20,484 to €27,382.
National Minimum Wage will increase by 80 cent per hour to €13.50 from January 1.
The tax-free limit for non-cash benefits like vouchers has increased by €500 to €1,500.
The Bank Levy will be extended at the current level of €200 million.
Changes to the R&D tax credit.
€12 weekly increase in social welfare payments.
Parents of newborns to receive a one-off baby boost of €420.
€15 weekly increase in maternity, paternity, and parents' benefits.
Energy credit of €250.
Help to Buy Scheme to be extended.
Mortgage interest relief extended to assist mortgage holders.
Rental tax credit increasing to €1,000.
Investment incentive schemes extended with higher tax reliefs included.
A €170 million energy subsidy scheme for 39,000 firms.
The carbon tax will increase on October 9th for petrol and diesel. For other fuels, the rate increase will come in May 2025, after the home-heating season.
VAT on heat pumps will come down from 23 per cent to nine per cent.
These updates provide a mix of opportunities and challenges for business owners. Whether it’s tax savings, wage increases, or investment incentives, it’s essential to understand how these measures will impact your operations moving forward.
For a complete breakdown of Budget 2025 and its implications, you can download the comprehensive PDF summary below. Stay informed and prepared for the changes ahead!
If you would like further information or advice on the impact of Budget 2025 on your business please get in touch.