A new tax year – checking tax credits
With the beginning of a new tax year PAYE workers should have begun to the (small) benefits of the reduction in the lowest rate of USC in their payslips.
It is also important that you check to ensure that your tax credits certificate (TCC) which reflects your tax credits and and cut-off point is correct.
In the case of married couples and civil partners it is possible to allocate some of their tax credits to the spouse earning most if the other spouse is unlikley to utilise their full credits. This would only result in a cashflow saving however there would no saving in the overall amount of tax to be paid.
Emergency tax applies to employees who have not yet received a TCC. The tax office may be awaiting some information from you such as a P45 or alternativly Revenue may be unaware of your employment. It would be important that one would call their local tax to identify what further information Revenue may require.
At times an employee may receive a TCC on a week 1 basis. This means that the Revenue haven’t granted you the benefit of a full credit on the TCC. Again Revenue more than likely do not have all the details they require from you. It is best to speak to the local tax office.
It can never be said enough times. Make sure that you have claimed all tax credits you may be entitled to. A few credit that many people are unaware of are:
Home Carers credit €1,100
1 Parent family credit (single parent child carer credit) €1,650