- February 19, 2021
- Posted by: Lorraine Kelly
- Category: Business Support
Tax credits are a form of relief offered by the government to reduce the amount of tax you must pay. Every PAYE worker is eligible for these and is guaranteed to receive at least the Personal Tax Credit and the PAYE Tax Credit.
Self employed and company proprietary directors are entitled to the Personal Tax Credits and the Earned Income Tax Credits.
However, there are various other tax credits available which may be applicable to you depending on your individual circumstances.
Personal tax credits and PAYE tax credits are usually applied every year at the source of income however, it is up to you to inform Revenue of your current marital status or an additional tax credit to which you may be entitled to. You can do this by registering for ROS MyAccount. Otherwise, you may not be availing of the relevant tax credits and could be overcharged on taxation as a result!
Tax credits are non-refundable. However, any unused tax credits in a pay week or month are carried forward to subsequent pay period(s) within the tax year. After your tax is calculated, as a percentage of your income, the tax credit is deducted from this to reduce the amount of tax that you must pay.
You may be entitled to other tax credits such as, Health Expenses, Tuition fees and Stay and Spend for example. So you should review your tax credits on a regular basis and visit Revenues Website for full details.
Click on the link below for details of the most popular personal tax credits available. Personal Tax Credits 2021.
All PAYE customers should receive a notification of their Tax Credits & Standard Rate Cut-off Point from the Revenue Commissioners for each tax year. You should be able to view your tax certificate through your ROS MyAccount.
If you change employers during a tax year, you should also receive a revised certificate made out to your new employer.
If you have not already done so do register for Ros MyAccount and review you tax credits on regular basis. For married couples there is a facility to split your tax credits between both spouses to ensure each person is paying the optimum amount of tax.
If you have any suggestions for future posts email lorraine@bmsaccountants.ie