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.
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.
Thomas McGibney & Company 