Tax Thresholds and Allowances Can Be Escalated - Ireland

The Default Tax Table Assumption is a preference, which is set to 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 2% per annum):

- 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



We code for what we know. As a rule, Voyant software is coded to account for legislated rules and only escalates tax-related assumptions once we move beyond the known. For example, if the government were to announce that the Employee (PAYE) Tax Credit, which is €1,650 in 2019, is to be frozen at this level until 2024, the software would account for this and would only begin the escalation of this tax credit from 2024 onward.


Options for Rebranding / White Labeling

For firms who use Voyant’s optional white labelling/rebranding service, the option is available to escalate these tax related assumptions independently of one another, using different rates or possibly to exclude some from escalation.