# Recent changes to VAT & Employer's PRSI



## PDCAT (14 Jun 2011)

Hi Folks

I am just looking for some  help with two recent changes made by the government in relation to Vat & Employers PRSI.
My wife owns a small business and i do her book keeping for her. Just have couple of questions, if someone could help me out.

*VAT*

Vat rate has been reduced from 13.5% to 9.5% i believe in recent changes. This has been reduced only for certain business (tourism related).
I know hairdressing has recieved this reduction. My wife's business is Beauty Salon. Does anyone know, if she is entitled to this reduction. i have checked the revenue webpage and can't find any info on this. Also does this change occur in July.

*Employers' PRSI*

Are all employer's entitled to this. My wife has one girl working three days a week which she pays 8.5% employers prsi. Am i right in saying that from first week of July, she will only have to pay 4.25% (reduction of 50%).
Thanks for your help everyone.


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## kennyb3 (14 Jun 2011)

The reduced Vat rate is 9% not 9.5%, and only applies to very specific areas - beauty salons not being one of them. 

On the prsi one - as long as she earns less than €356 per week yes it will be halved. 

This may help you

[broken link removed]


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## PDCAT (14 Jun 2011)

kennyb3 said:


> The reduced Vat rate is 9% not 9.5%, and only applies to very specific areas - beauty salons not being one of them.
> 
> On the prsi one - as long as she earns less than €356 per week yes it will be halved.
> 
> ...


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