Personal Tax 2002 - McGibney & Company - Chartered Accountants

Thomas McGibney & Company

Chartered Accountants

Registered to carry on audit work and authorised to carry on investment business by the Institute of Chartered Accountants in Ireland (ICAI). Chartered Accountants Ireland is the operating name of ICAI.

Income Tax Rates & Bands 2002

The tax rates are unchanged at 20% and 42%.

The standard rate tax bands will increase as follows:

Category	IR£ change	€ change
For a single person	by £2,052 to £22,052	by €2,605 to €28,000
For a two-income married couple	by £4,104 to £44,104	by €5,210 to €56,000
For a one-income couple	by £140 to £29,140	by €178 to €37,000
For a lone parent	by £2,052 to £25,202	by €2,605 to €32,000

The Rates and Bands for 2002 are as follows:

Tax Year	Rate	Single/ Widowed	Married Couples	Married Couples	Lone Parent
Tax Year	Rate	Single/ Widowed	One Income	Two Incomes	Lone Parent
2002	20%	£ 1 - 22,052	£ 1 – 29,140	£ 1 - 44,104	£ 1 - 25,202
	20%	€ 1 - 28,000	€ 1 – 37,000	€ 1 - 56,000	€ 1 - 32,000
	42%	Balance	Balance	Balance	Balance
2001	20%	£ 1 - 20,000	£ 1 – 29,000	£ 1 - 40,000	£ 1 - 23,150
	20%	€ 1 - 25,395	€ 1 - 36,823	€ 1 - 50,790	€ 1 - 29,395
	42%	Balance	Balance	Balance	Balance
The 2001 tax year figures are stated on a 12-month basis.

Tax Credits

Personal Tax credits will increase as follows

	For single person from £1,100 to £1,197 (from €1,397 to €1,520)
	For married couples, from £2,200 to £2,678 (from €2,794 to €3,400)

The PAYE tax credit increases from £400 to £520 (from €508 to €660)

Employment of Carer

Some years ago, a special tax allowance was introduced in respect of the costs of employing a carer to care for an incapacitated child. This allowance is given at the marginal tax rate.

The limit on this relief has been dramatically increased from £13,625 to £23,627. The new limit in euro is €30,000.

Other Increases

There are minor increases in other credits such as incapacitated child credit, blind person credit, widower's credit, widowed parent credit, age credit, dependent relative and home carer credit.

PRSI

Employer’s PRSI falls by 1.25% from 12% to 10.75%

Other PRSI Rates remain unchanged

	3% for self-employed and company directors
	4% for employees on the normal (Class A) rate

The PRSI income ceiling for Employee PRSI goes up by £2,260 to £30,510 (€38,740 )

Donations to Sports Bodies for Capital Projects
A new tax relief is being introduced for donations to sports organisations for capital projects.

This relief will be available to both individuals and companies. Some conditions will apply. The full details of the scheme will be in the Finance Bill in the New Year.

Thomas McGibney & Company

Chartered Accountants

Phone +353 (0)49 8549966

email tax@mcgibney.com