CLIVE and Annette are a professional couple in their thirties with no children. Annette is a bank official earning £18,000 while Clive is a company representative on £24,500, working in Dublin and spending most of his time on the road.
They bought a house a few years ago for £85,000 and have a £75,000 mortgage of which £40,000 is at a subsidised rate from Annette's employer. Clive has a company car.
They are liable for Benefit in Kind (BIK) tax on both the subsidised loans and the car. The BIK on the subsidised loan is based on the difference between a nominal interest rate set by the Minister and the actual rate on the loan of 6 per cent. They are disappointed the Minister did not lower the nominal rate to reflect the fall in prevailing rates. The changes to taxation of company cars will reduce Clive's BIK by 20 per cent.
Their gross income has fallen from £47,385 to £46,488 and their net income after income tax and other deductions is up from £25,970 to £26,439, an increase of £531 a year. Increase in tobacco tax will cost Annette around £18 a year. Both are pleased there was no increase in tax on alcohol.