PAYE - Employee Tax Credit
Who can Claim?
Any individual whose income is subject to PAYE i.e. Wages, Salaries, Occupational Pensions, Social Welfare Pensions, Benefit in Kind, etc.
Note - The PAYE Tax Credit cannot exceed the individual's PAYE income at the Standard Rate. Any restriction which may arise, will be calculated on review at the end of the year.
Conditions to Qualify
It is not due against income paid to:
- Proprietary directors, their spouses or civil partners or children. (See below).
- The spouse or civil partner or child of a person paying the income.
- The spouse or civil partner or child of a partner in a partnership.
Children of Proprietary Directors are entitled to the PAYE credit if:
- The employment is in a qualifying PRSI contribution class
- PAYE has been correctly applied to the child's income
- It is a condition of the employment that the child is required and actually does devote substantially the whole of his/her time to the duties of the employment
- They are paid at least €4,572 per year (may be apportioned on a time basis).
A Proprietary Director is the company's beneficial owner or director who can control directly/indirectly more than 15% of company's ordinary share capital.