Budget 2010

Tomthepost

Had a quick read through the budget summary but didnt spot anything significant that might affect or help a new business. VAT going down is a good thing but I just wish it went to 20% instead of 21%. It would have made life that little bit more simple.
Anyone spot anything significant? Any changes for those on the back to work enterprise allowance.

mickbyrne

Additional funding has been allocated for back to works schemes and PRSI exemptions.

The extension for corpation tax exemption for 3 years is being extended to 2010 which may be a benefit to new startups.

Investment in specified energy efficient equipments continues to attract 100% capital allowances

The new 'Universal Social Contribution' will be interesting to see whenever it is introcduced. Only flagged this year.

Appart from these there is very little for business. No big push for job creation etc that you would have hoped to see.

The motor industry and licenced trade are big winners though with the scrappage scheme and reduction in duty. Prices of many new cars have already dropped by thousands. I can't see the benefit for subsidising a service industry like this. If we had car manufactures here, then there would be some sense in it, but then, it is VRT which they should not be taking in the first place that they are refunding

Regards,
Michael
www.perspective.ie

mcaul

Personally, I think the benefit from business is that there will be no extra taken out of people wages, (except public sector) which means people don't have to recalculate income and worry about how much they'll lose.

The cut in alcohol prices is also welcome, as it makes shopping in the north less attractive especially when UK vat is increased by 2.5% in January. - Therefore, shops here will be more competitive.

As most retailers didn't add in the half percent vat, it won't be noticed on general pricing, but gives back that half percent margin that was taken away last year.

Overall, good considering the issues faced - but the issues faced shouldn't have been as bad as they are!

DubTony

Tomthepost wrote: »

Had a quick read through the budget summary but didnt spot anything significant that might affect or help a new business. VAT going down is a good thing but I just wish it went to 20% instead of 21%. It would have made life that little bit more simple.
Anyone spot anything significant? Any changes for those on the back to work enterprise allowance.

I juts had to express my opinion about this.

In all seriousness, does the reduction in VAT really "help" anyone at all.

When McCreevy dropped the VAT rate with the threat of putting it back up if he didn't see the reduction passed on, what did he honestly expect to see? Lenihan has made the same threat in this case.

Most peoples day to day purchases are food items which are zero rated for VAT. So there's no benefit to anyone there. The bottle of Mi-Wadi or Coke etc. can typically be bought for less than €2. So a super saving of one cent to the consumer. On a €9.99 purchase the saving will be 5c. On a €150 shopping bill for an average family the saving is 75c, and that's only if everything purchased was at the appropriate of VAT. The saving on a €20,000 car is a life changing €100.

Just like when McCreevy dropped VAT from 21% to 20% I believe this is simply a political gimmick to give the impression of something being given back. Unfortunately, most people have no idea what our VAT rates are and what they apply to, so a couple of euro off a chicken in SuperQuinn will look like a VAT saving on the bottom of the receipt.

Retailers should let customers know exactly how much they're saving. If a retailer was able to add to the end of the receipt

"The 1/2 percent VAT saving on this purchase was €x.xx"

the public could see this for what it really is.

/rant