Check your tax credits for 2017

With the new tax year starting, the Revenue have been issuing to employers the 2017 tax credit details for employees. Based on these details, employers calculate the amount of tax to deduct from employees salary and more importantly how much net the employee will receive. The employer does not receive a breakdown of how the Revenue have arrived at the figure as these are personal to the individual taxpayer.

As we review the tax credits for clients for whom we provide payroll outsourced services, we have identified a number of situations where Revenue have the details incorrect and we have had to contact the Revenue to have the details corrected.

So it is worth taking a few minutes at the start of the year to review your tax credits and tax bands to check that they are correct.

  • Have your circumstances changed ? eg have you got married, separated or divorced ?
  • Have you had children and your partner/spouse is now at home minding the children ? Are you entitled to the Home Carers Credit ?
  • Are you paying nursing home costs for a Dependent Relative ?
  • Are you paying into a pension where tax relief is not received through payroll ?
  • Is your employer providing your with medical insurance (a taxable benefit in kind) - if so have you ensured you claim the tax relief at source ?
  • Are you a proprietory director ? If so do your tax credits reflect your entitlement to the Earned Income Credit which is worth €950 in 2017 (up from €550 in 2016).
  • Are you a proprietory director ? If so do your tax credits incorrectly show you being entitled to the Employee Tax Credit of €1650 ? If so rather than creating a liability which would be payable on filing of your tax return and increase a preliminary tax payment obligation, amend the tax credits to remove this credit now.
  • Open a folder or envelope into which you will put any receipts for claiming on your 2017 tax return eg medical receipts.
  • Are you (or your spouse/partnr) aged over 65 years ? You could be due the Age Tax Credit
  • Are your aged 66 or over ? Does your employer know as your PRSI class changes (and amount of PRSI payable) reduces from age 66.
  • Are you aged over 70 years ? If so this affects your USC liability.

 

 

 

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