Default Inflation/Growth Rates - Default Tax Table Assumption

The Default Tax Table Assumption is found in the Preferences screen (reached via the 'cog' icon, top-left).

 

To edit this assumption in the client case you are currently working in, go to the Plan Preferences, on the right side of the screen. Expand Default Inflation / Growth Rates.

 

The Default Tax Table Assumption can be used to edit and apply an across-the-board annual escalation to the following assumptions, relating to taxes and contribution allowances (with the default rate of escalation being set at 4%):

- Tax brackets (20% & 40% earnings thresholds)
- Standard Tax Credits - all
- Child Benefit allowance
- Age 65+ Exemption threshold
- Personal capital gains allowance
- ARF Minimum Secured Income requirement
- PRSI & USC standard rate income thresholds
- PRSI & USC exemption thresholds
- USC 'reduced rate' thresholds
- USC self-employed surcharge threshold

Tax related assumptions that are not escalated

The software does not escalate:

- Standard Fund Threshold (SFT) - €2m
- ARF minimum fund threshold - €63,500
- Money purchase contribution income limit - €115,000
- CAT thresholds

Plan Preferences vs. System Preferences

Changes to this setting on the mirror Default Inflation / Growth Rates panel in System Preferences, on the left side of the screen, will only be used going forward, i.e. as you create new client cases. System Preferences are used as a template only for new client cases. Changes to System Preferences will not retroactively affect your existing client cases.

If you want to change this preference in any existing client cases, you will need to open and edit them individually, in each case's Plan Preferences.