Maximise your Tax CreditsPosted Wednesday, August 7, 2019
By Jennifer Doyle:
What are Tax Credits
In simple terms, Tax Credits reduce the amount of tax you pay.
Everyone is entitled to Personal Tax Credits – the annual credit for a standard individual is currently €1,650. If you’re self-employed (in receipt of trading and professional income) or a proprietary director, you may also be entitled to the Earned Income Tax Credit.
The Earned Income Tax Credit
The Earned Income Credit for self-employed individuals (which includes Professional Contractors) was first introduced in January 2016 to assist in bridging the gap between the taxation of self-employed individuals and employees in Ireland. It has increased from an annual credit of €550 to €1,350 in 2019. Following budget 2020 the earned income tax credit has again been increased, and will now be €1,500 from January 2020.
While this still falls short of the PAYE credit (also €1,650), the gap is closing.
How to apply for your Tax Credit?
You can check and add credits through your online ROS account.
To check the credits you currently have assigned, login and head to the “PAYE services” section. Click through to “Manage your tax 2019” and “View my tax credit certificate”.
Once your Tax Credit Certificate loads, you’ll be able to check the Tax Credit section which details the credits currently assigned.
If you have any questions on your own tax credits, don’t hesitate to contact your Dedicated Account Manager here in Contracting PLUS – they will be happy to help you. Their direct contact details (phone and email) are listed in your MyContracting PLUS online portal.