Scenario Number 2, Marinus & Stella.
In today’s post, we’ll look at Marinus and Stella.
Marinus and Stella are 36 & 32. They are married with 3 kids, aged 10, 8 &4. Marinus is a Sales Executive earning €45,000 & Stella is a Marketing Manager earning €50,000. They moved to Ireland 2 years ago. While they are currently renting, they are hoping to buy a home in the next 12 months if all goes to plan.
Energy credits
- Every household will receive €600 in credits to their heading bills this winter – the first €200 credit will happen before Christmas.
Tax on Marinus’s Income
There have been 3 changes that will add more money to Marinus’s take home pay.
- The Standard Rate Tax Band have been widened by €3,200 – increasing Marinus’s annual take home pay by €640.
- €75 increase in the Employee Tax Credit for Marinus.
- Minor changes to how USC is calculated will reduce his USC by €40.63 per year.
- So Marinus will take home an additional €640 + €75 + €40.63 = €755.63 per year.
Tax on Stella’s Income
- Stella will benefit from the same 3 changes as Marinus and will also take home €755.63 extra per year as a result too.
Children’s Benefits & Payments
- Once off double children’s benefit for their 3 kids – worth €420.
- Free school books for all their children as they are in primary school.
- Their 4 year old already qualified for a free GP visit card. Their 8 and 10 year old children still do not qualify (as the changes only included 6 & 7 year olds and households earning less than €46,000).
Renters Tax Credit
- As a household Marinus and Stella will qualify for a new €500 tax credit for renters. This will reduce their income tax bill by €500 between them.
These are the main changes effecting Marinus & Stella.
Energy credits €600.00
Marinus’s income €755.63
Stella’s tax credits €755.63
Renters tax credit €500.00
Children’s Benefit €420.00
Plus school books & GP: €250.00 (approx).
Total increased benefits for Marinus & Stella of €3,281. This will ease the inflationary pressures and in particular the rocketing costs of utility bills.
Help to Buy Scheme until 2024
Finally, an important change for this couple is that The Home to Buy Scheme has been extended until the end of 2024. It was due to end on December 31st this year.
This scheme has been designed to help home buyers save money for a deposit for buying a brand- new homes.
It allows applicants who are first time buyers to claim back all the PAYE they have paid over the last four years – up to €30,000 or 10% of the property value (whichever is lower).
As Marinus and Stella have been working here for 2 years, it will give them an opportunity to work for up to another 2 years to qualify for a bigger grant from the scheme.
I’m sure there are people in the same situation as Marinus and Stella, so I hope this helps is some way to explain things.
If I can be of any help going forward, please feel free to PM me or contact me on the details below.
Kind regards,
Danny Coad QFA
Tel: 0862422441
Tel: 00353862422441 (If contacting from abroad)
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