An increase in Minimum Wage and tax changes among relevant highlights
Michael McGarth, the Minister for Finance, has included a Minimum Wage increase and tax changes in the 2024 Budget. Here are the highlights for the hairdressing industry…
NATIONAL MINIMUM WAGE
As of 1 January 2024, the National Minimum Wage will increase by €1.40 per hour to €12.70 per hour.
TAX & INCOME
The 4.5% rate of USC will be reduced to 4%
Employers PRSI to increase by 0.1% from Oct 2024 to fund future pensions
An increase in the existing VAT registration thresholds for businesses from €37,500 to €40,000 for services, and €75,000 to €80,000 for goods
The point at which workers pay the top rate of tax will rise to €42,000
Personal, Employee PAYE and earned income tax credits are being increased by €100 each to €1,875
The standard rate income tax cut off point is being increased to €2,000 to bring entry to the higher rate of income tax to €42,000
Revenue will set up a dedicated Tax Administration Liaison Committee (TALC) subgroup, making it easier for business to access support
Government has announced €250 million will be allocated for business support schemes, which are yet to be established
The Irish Hairdressers Federation, on behalf of its members, made a Pre-Budget Submission ahead of Budget 2024 requesting Government permanently reduce the recent increase of VAT rate for the industry to 9%. However, no change will be made.