PAYE - Employee Tax Credit

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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.

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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).

Additional Information

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.

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