Countdown to Budget 2020: What To Expect

Countdown to Budget 2020: What To Expect

By |2019-08-06T11:56:56+01:00August 6th, 2019|Latest News, News|

On Tuesday October 8th, Minister Paschal Donohoe will announce Budget 2020.

It will be the 4th budget of the current Fine Gael minority government that will seek continued support from Fianna Fail under the extended confidence and supply agreement.

As outlined in the summer economic statement at the end of June, the Government are in the unprecedented position of having to prepare two budget statements based on the potential deal or no-deal Brexit scenario.

As the weeks slowly pass with no solution imminent, it has become more likely that a no-deal budget will be unveiled in early October.

However, a decision is to be made in early September when additional information is available.

The summer statement suggests, a no-deal Brexit would see a budget deficit of 0.5% to 1.5% of GDP for 2020 and would cost 50,000 jobs.

However, an orderly Brexit would lead to a €2.8bn budget package, of which €700mn would still need to be allocated.

On July 17th, the Department of Finance and Department of Employment Affairs and Social Protection published twelve papers by the Tax Strategy Group. The tax papers suggest areas of potential tax reform and details on current consultations being carried out.

The papers cover all tax heads with comments on items such as adoption of international tax reform, tax incentives for SMEs and Brexit preparation.

Over the next eight weeks, the Baker Tilly tax team will examine these papers with a view to discussing the particular items they would like to see adopted and the approach they would like to see on adoption.

In the build up to Budget 2020, we hope you stay tuned for these insights from our tax experts.

You can learn more about the Tax Department by clicking here.

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