BY JOHN ELLIS, FINANCIAL ADVISOR
Budget Day is set for Tuesday, October 6. That gives us roughly seven weeks to get our own finances in order before the minister stands up in the Dáil.
The Government has already indicated that this is likely to be a tighter Budget than we’ve seen in recent years. Around €1.5 billion has been set aside for tax measures, with much of that expected to go towards income tax changes. One possibility is an increase in the standard-rate band, currently €44,000 for a single person. If that happens, more of your income could be taxed at 20% rather than 40%. There has also been talk of further help with childcare costs and a new savings and investment scheme designed to encourage people to move money out of low-interest deposit accounts.
But whatever is announced on 6 October, there is plenty you can usefully do before then.
- Get a clear picture of where you are
Start with the basics. Pull together your latest payslips, pension statements and regular household expenses. Look at your taxable income and see where you currently sit in relation to the €44,000 threshold. If you are married or in a civil partnership and jointly assessed, the position is different, so make sure you are looking at the threshold that applies to you. That way, if the tax bands change, you will be able to work out what it actually means for you rather than just reacting to a headline figure.
- Make sure you’re using the reliefs available to you
Check that you are claiming everything you are entitled to, including medical expenses, the rent tax credit and remote working relief.
Pensions need to be looked at. If you have unused contribution capacity this year, consider using some of it before 31 December. Tax relief at your marginal rate can make these contributions particularly attractive. If you have an AVC or PRSA, now is the time to review it rather than leaving it until the end of the year.
- Don’t overlook the big monthly bills
Energy, insurance and mortgage costs often have a bigger effect on household finances than a modest Budget change. Get quotes. Check what you are paying. If your mortgage rate is coming up for review, look at your options now. You do not need to wait for Budget Day, and in some cases the savings from switching or renegotiating could outweigh whatever tax measures are announced.
- Have a look at your cash
The Government has said it plans to introduce a new tax-advantaged savings or investment account, with the detail expected around Budget time. There is no need to make any decisions yet. What is useful is knowing how much cash you currently hold in deposit accounts and what interest you are earning. Once the scheme is announced, you will be in a much better position to decide whether it makes sense for you.
- Don’t rush on Budget Day
Budget speeches are designed to grab attention. You will hear big numbers and dramatic headlines. For most households, the valuable information comes afterwards, when the details are published and we can see exactly who benefits, by how much and from when.
So, there is no need to make a major financial decision on 6 October or the morning after. Give it a few days, let the detail emerge, run the numbers and then decide what, if anything, needs to change.
A few practical steps between now and October
- Update your income and tax positions.
- Check that you are claiming all the reliefs to which you are entitled.
- Review your pension contributions for 2026.
- Get quotes for energy and insurance.
- Check your mortgage rate and when it is due for review.
- See how much cash you are holding in low-interest accounts.
- Put October 6 in the diary and plan to review the Budget properly once the detail is available.
The Budget will come and go. Your financial position will not change overnight. The people who tend to get the most from these changes are usually the ones who already know where they stand, what they are paying and what they could improve.
A little preparation now will make it much easier to work out what the Budget means for you when the time comes.
john@ellisfinancial.ie
086 8362633
