Tax Credits Question

JKM

I was doing wages last week and one of our staff noticed that she was being taxed PAYE. I upload everything from ROS so knew I hadn't made any errors. On checking her credits V last years it turns out they have dropped significantly.
She applied for PAYE online and we went onto it today to download her Tax Credit form.
She has single person credit for €1650 and PAYE credit for €1650. Then a reduction has been made for over €2204 for one parent family payment. This means her credits have been reduced to €1096 leaving her liable for tax on a very low income.
Does anyone know if this is correct. She didn't get much feedback when she rang the revenue except for being told that she shouldn't be taxed on her low income.
I've advised her to apply for the one parent tax credit as well. Those anyone know if this is instead of the personal tax credit or is it supplimentary to it.
Sorry for the long post, i'm just keen to help her as she is a single parent struggling enough as it is.

smcgiff

Not sure about the specific case you mention, but Revenue have been known to reduce tax credits if they need to recoup money from someone - in this case it looks like the Revenue think they need to claim money back from this employee.

nompere

One-Parent Family Payment is taxable - http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/claiming_a_social_welfare_payment/taxation_of_social_welfare_payments.html so it's normal for Revenue to reduce credits. The alternative is to leave the person with very large tax bill at the end of the year, and probably no funds to pay it. Much better for all concerned for the tax to be collected through PAYE.