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WHILE MULTINATIONALS MULL over Ireland’s headline-grabbing move to shut the Double Irish tax loophole, TheJournal.ie has taken a deeper look at what’s in this year’s Budget for the real engine room of the economy.
Small and medium enterprises (SMEs) make up over 99% of all Irish businesses and employ nearly 70% of the private-sector workforce, and we want to know how good a job you think the government has done with yesterday’s financial roadmap.
First, here is a summary of some of the highlights, and lowlights, from Finance Minister Michael Noonan’s delivery:
What’s the reaction?
Most business groups have given the budget an overall nod of approval with Ibec, which counts several multinationals and Ireland’s biggest companies among its members, particularly glowing in its praise.
“This is a good budget for the economy; it will support business and consumer confidence and crucially it improves personal spending power for 2015,” the lobby group said.
But the Irish Small and Medium Enterprises Association (ISME) gave the government a spray for delivering an “uninspiring” Budget for entrepreneurs that did nothing to fix the unfair tax discrimination against the self employed.
So there are the details and a few opinions but the real, €1 million question is: Do you think your business will be better off thanks to this year’s Budget?
All this month, as part of TheJournal.ie’s in-depth coverage of the small- and medium-enterprise (SME) sector, we will be looking at key money matters for local businesses and entrepreneurs.
If you know an SME or startup that is doing interesting things in money management let us know by sending an email below.
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Okay, but from my point of view I changed from a 12 year old car which was expensive to run €690 tax a year for a 3 year old small car which I can tax, insure and get 4 tanks of fuel for the same price as my old tax. I needed finance but there comes a point, especially when you are mechanically minded when needs must.
Missed out a not there, maybe should add technologically challenged too! :)
The scandal of those with pre 2008 cars, having to subsidise the motor tax of those with newer cars continues.
Idiot
€952 for 11 year old car to €390 for 151. It was time for me to change too
@Eddie – Excuse me Eddie Byrne! Did I write something that is factually incorrect?
@TheD: Pre-2008 car owners, you are not only subsidising the annual Car Tax of New Car Buyers but also their Water charges … 2/3 of Irish Water funds paid from Car Tax. €444 is the average car tax for pre-2008 cars while €218 is the average for new car owners. Obscene, regressive and the most unfair car tax system in the EU. UK MPs refused to pass this car tax law in the UK parliament in 2004. Time to change Ok … the Government.
Why is the Golf so popular in Ireland? Its ridiculously expensive for its size.
They keep they’re value well though so you’ll get that back eventually. In the meantime you’ll get to drive the best car in that class. The VW group spend more on R&D than any other major car company and it shows. Just my 2 cents.
And no, I don’t work for VW..
Poor man’s Audi.
Jasus it’s awful boring though !!
Traditionally VW come with few standardised gismos. U pay for every bell & whistle they give & its expensive.
I find it hard to believe VW invest big time in R&D – Surely theres huge savings on the body design of the Golf which is basically the same for the past 40 yrs with a few tweeks here & there !
http://fortune.com/2014/11/17/top-10-research-development/
There you go. The VW Golf is their biggest selling car worldwide so I’ve no doubt a good chunk of that R&D eventually finds its way into it in some form or other.
I agree on the poor spec but it has got a lot better in the last few years versus the main competitors
It may be relatively easy to get finance on a new car but almost impossible to get any finance/loan for a car over 5 years old. I’d rather buy a decent second hand car for thousands less with affordable payments than paying for brand new car with higher payments and as soon as you drive out of the forecourt, the value of that little ‘investment’ drops by at least €5,000! I bought my jalopy in 2011 with 66.000 miles on clock for €2,100. I certainly have got the value from her and owe nothing. I’ll never buy a new car as in my opinion it’s money down the toilet.
Not only is it money down the toilet, but for the most part, it’s money out of the country. And because of all the sheep buying a VW Golf, it’s going straight back to Germany. Way to go.
This is largely because of the massive amount of taxation levied on cars in this country. If you were living in the UK you could buy a new BMW, drive it around for 3 years and then sell it in Ireland at a profit.
Well, there’s an economy argument folks have to weigh up re reliability and also things like fuel efficiency and tax bills, which penalise older cars with dirtier engines (by and large). It pays to sit down with a calculator and work out the total cost of ownership of a jalopy vs a newer car, perhaps with an extended warranty and service package included.
As to your comment Frederick, which brand of Irish-made car would you recommend?
The only way that calculation will ever work out in favour of a new car is if the new car is an electric car and you buy it before December of this year.
Aaron, in response to your facetious comment, I would suggest more people walk, cycle and use public transportation. The demand will drive supply, except in the most rural of areas. There you can stick with your diesel Toyota Corolla or whatever tickles your fancy. But better to go second hand for your Corolla since you are effectively “recycling” a car and avoiding repeat exodus of money out of the country. Cars will easily last 250k km if serviced properly and regularly. That would be 15 years or more for a typical Irish user, yet the average age of an Irish car is much less.
@jack race.
A hybrid is prob better.
I know of only 1 recharging point in Dublin – Across from the Mater Hos. In Dublin.
Electric cars are of no interest to people travelling long return distances – the ‘refuelling’ facilities are just not available yet.
I changed last year – Main Reason – Road Tax – Reduced by €300 a year.
I saw a Nissan Pulsar today. Probably just picked up from the garage going by the license plate and the driving.
The drivers door was visibly open. The drivers door and door behind it had a fresh gouge taken out of them. The driver was driving with the hand brake on.
It was comical to watch. He couldn’t accelerate over 30kmph. I followed him for around 2k he eventually clicked that his door was open and a few minutes later that his hand brake was on.
You’re forgetting about all those employed in the motor trade in Ireland, distribution as well as dealers
Aaron, as my jalopy has cost me approx €500 in repairs since 2011, I’ve no need to sit down with a calculator. She may have a few grey hairs but she’s all mine. No monthly payments of a minimum of €250 (after deposit and before balloon payment at the end).If the tax was even free on a new car and mine €710, I’m still far better off financially than someone driving around in a brand new car losing money everytime they pull out of the driveway. People buy into the ‘oh you save money by buying a new car’….no you don’t!
That’s great, selfsustainable – Any hints on type/mileage when you got it? There are great deals out there, and to clarify I’d suggest going second hand; but so too there’s a lot of bangers that’d cost you more in repairs and heartache than spending a few grand more. My suggestion was more, pay for something better – But yes, I’d let someone else (who is happy to take the hit and can afford it) take that horrific year 1-2-3 depreciation.
Frederick, a 10 or 15 year old car is significantly more damaging to the environment and unsafe compared to even a 5 year old car, especially if it has been driven 15 or 20,000 km a year.
Believe it or not it’s a jag X – type, people told me bad things about them but I couldn’t pass on a bargain! automatic and decent enough on fuel. I’m used to the larger engine so I’d find it hard to move down. Guy who owned it was an older gentleman and treated it like a baby so everything perfect. I got burned years ago spending a lot of money on nearly new mini Cooper and bloody thing never gave me a days peace so I buy cheap now as even if it blows up, I’m not out thousands on repairs. If I win the euro millions, I’ll buy new! Until then I can’t justify it.
I just bought a 14 yo Audi. It’s doing 58mpg on diesel. Flew through NCT , so it is safe and clean. It has full leather, sat nav, sun roof, cruise control, low mileage, reversing sensors etc.
I’ve had new cars and nearly new cars.
The €1100 I spent on this car will make it cost me €5 per week for 4 years.
Beat that with a new car.
I’d rather have an accident in my 10 year old ‘unsafe’ Honda Accord than a brand new Micra, thank you.
Why would a 10 years old car be unsafe? I can guarantee you that you’ll be better of in my 10 year old Accord than in a brand new Micra if you were involved in an accident.
This boom is being fuelled with easy access to credit through the manufactures finance offerings to boost sales. A sign of recovery yes but not as strong an indicator as may be perceived
Also a lot of cars being bought by fleet companies.
Tom if they are being bought by fleet companies, that is the best sign the economy is picking up. Companies don’t spend money unless they expect to grow.
Is there anything more boring than a VW Golf? Never understood the obsession in Ireland.
I think there’s a kind of misguided belief in Ireland that Volkswagen is a premium brand like BMW or Audi, when in fact it is a mass market brand for the people (the eponymous “Volks”). Not that there’s anything wrong with that, but I always chuckle when someone tells me they got a Passat or whatever, as if they’re driving a Mercedes or a Lexis. No, you’re driving a Volkswagen, which might as well be a Ford or a Toyota.
I don’t think brand matters too much. I would take a Golf R over any mercedes or audi minus amg or RS.
Also looking at european car of the year vw passat won 2015 and vw golf current generation won 2013 so they must be doing something right as these are not based on sales
Serious waist of money buying a brand new car,the value drops in thousands the moment your handed the keys.
It’s estimated that 60% of these new car sales are on HP Personal Contract Plans(PCP’s). Very low monthly repayments enable you to drive off in a brand new car which you will either refinance at the end of three years or hand the keys back and actually own nothing at the end of term. A perfect example of the motor industry creating its own little bubble which has huge potential to end in tears. Pay 10% deposit and away you go down the slippery slope.
The same Nigel that honed his driving skills in St Michaels ??
Yes if you’re a debtor, no if you’re a creditor.
Great deals in second cars out there would never buy a brand new car again I was caught in that loop and it costs ….They devalue way too quickly and you never get that back
It was always going to happen as the economy improves… A surge of people who delayed making large purchases and who’s current cars are becoming more uneconomical are hitting the market.
The surge is going to be bigger the more troubled the economy has been in the last few years because there will be more pent up demand
That’s usually another good indicator of a recovering economy.
Bought my first ever new car last year. I love it.
However I can afford it. Drove a banger for years beforehand and waited until I had more than enough in the bank so I wouldn’t experience buyer’s remorse.
If you need to borrow more than 10k for a car…you probably can’t afford that car. (Unless you’ve got some amazing cash revenue…)…
Ah, ask me arse, Journal. Yeah, we’re all rolling in it. The thought hasn’t occurred to you that owing to this Government’s policies it costs an enormous amount in in Road Tax, NCT fees and even insurance, to keep a perfectly serviceable older car on the road? People are being forced into acquiring new cars for that reason – all on either HP or Bank finance. Yes, indeedy, we have turned the corner and we are all stinkin’ rich.
The gardai could do with upgrading thierr fleet.
When that happens I will start to take the recovery serious
You won’t complain about the Government buying cars instead of medicines?
Great news for germany more sales here means more money for Angela Merkel
Why do people think of German cars being sold in Ireland, as Imports.
Thanks to FF, Germany owns Ireland now – there a ‘home’ brand !!!
We dont make cars in ireland so therefore they are imports !
Technically they are a domestic eurozone brand.
Some of the maths done on here is incredible, I’ll save 600 on tax so I’ll borrow 10,000 and have a newer car???
I drive a 1500 euro van, 2007 combo with 350.000 miles on it, passed it’s doe last week without a single hitch because I maintain it perfectly well and it does 860 miles to a tank of diesel (€55)…….never again will I spend big money on a car or van that will deflate in the thousands every year just to say I have a 151 plate or what ever
The trade in the 14 for the 15 figures are up . I know people who have brand new cars that didn’t buy them there on finance and they trade up every year . I doubt people are splashing out on 40’000 new cars sorry I think trade ups are been used to bump the figures.
Financing them You mean, big difference
No NCT worries, lower tax, safer, better equipment, more fuel efficient – all good reasons to purchase a new car
@stephen kearon…….no nct problems save u a hundred quid approx, modern or non modern diesels are equally as efficient more or less, tax might save u a few hundred, higher comp insurance because of higher value, something goes wrong and it’s main dealer plug in time. Not to mention a huge hole in your wage packet due to the lease/ loan costs
Was that headline a play on “sh!tload of new cars”?….never heard the terminology “a shedload” !
You wouldn’t have heard of it, would you?
I have, Alan, and it makes a whole lot more sense than ‘a shitload’ if you thought about it for even on second. :-(
Pre-2008 car owners are subsidising the annual Car Tax of well off New Car Buyers and subsidising their Water charges also. Ireland a disgusting place to live.
I think it’s more a sign that more people are getting better at scrimping on the necessitates to pay for the showey item’s such as a car then they were the last couple of years
That headline is very deceptive considering I understand up to 75% of cars are on PCP deals! would this then makes sense quite simply as the countries mentioned are already accustomed to historic cheap credit? From a cash flow perspective those depending on cars It will make sense to take those deals based on short term needs and lower road tax and running costs of new car. Nothing whatsoever to do with affluence or buying as its to quite a degree just another form of credit without any asset base
I blame Taxi drivers lol.
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