The New €550 Earned Income Tax Credit

December 16, 2015

 

Revenue have today issued a short guide to the new Earned Income Tax Credit which comes into effect from 1 January 2016.

The Credit is worth a maximum of €550 per year.

It applies to self-employed individuals and entrepreneurs as well as to owner-directors whose salaries don’t qualify for the normal PAYE employee tax credit of €1,650.

Earned Income Tax Credit

If you are entitled to claim both the Earned Income and Employee Tax Credits, your  combined claim for both is capped at €1,650.

The Earned Income Tax Credit can be claimed, where appropriate, by both spouses.

It does not apply to rental, investment or other “passive” income.


Red Faces as Expenses Catch 22 hits Taxman’s Union

December 14, 2015

It was red faces all round at the Civil & Public Services Union yesterday when Mark Tighe revealed in the Sunday Times that the union has recently made a  €64,000 tax arrears settlement with Revenue.

The CPSU represents the majority of Irish Revenue staff.

It seems it fell foul of the increasingly arcane and often glaringly inconsistent Revenue rules on the tax treatment of expense claims paid to officers and employees.

CPSU.jpg

I see this as the strongest sign yet that the Revenue’s catch 22 regime on expense payments is all but impossible to interpret & obey in practice.

After all, if the taxman’s union can’t get it right, who can?

Meanwhile – in an irony beyond parody – the CPSU is today hosting a self-styled “Tax Justice” Conference in Dublin.


31 December Deadline for Old Tax Claims

December 7, 2015

If you are still waiting to claim a tax credit or relief for the tax year 2011, you must apply for the credit or relief by 31 December 2015. Otherwise you will lose your entitlement forever.

This is because of longstanding Revenue policy (backed by legislation) to refuse all claims over four years old

The most commonly unclaimed tax reliefs are as follows:

You should also check the lists of tax credits and tax reliefs and exemptions to ensure you are claiming everything.

Tax Refund Deadline

You can claim your tax credits or reliefs:

  • online using the Revenue PAYE Anytime facility;
  • by completing a Form 12 PAYE tax return; or
  • by writing to Revenue. (If you’re claiming for 2011, use recorded post, or at least follow up with a phone call, to ensure Revenue receive your claim before 31 December 2015.