Budget 2013:Single parent tax band

kellyj77

I appreciate that one parent will lose the single parent tax credit however has it been confirmed anywhere whether that parent will also lose the higher tax band?

tinkerbell

What do you mean lose the higher tax band? If you're already paying tax on the higher tax band, that doesn't change.

Moonbeam

kellyj77 wrote: »

I appreciate that one parent will lose the single parent tax credit however has it been confirmed anywhere whether that parent will also lose the higher tax band?

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/one_parent_family_tax_credits_and_reliefs.html

kellyj77

Moonbeam wrote: »

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/one_parent_family_tax_credits_and_reliefs.html

Thanks. On that site it states:

One-parent family tax rate

If you are eligible for the One-Parent Family tax credit then you are also entitled to an increase in the standard rate tax band. This means that in 2013 you can earn up to €36,800 a year before you have to pay tax at the top rate of 41%.


So according to this if you lose the tax credit you will also lose the higher tax band entitelent and drop to a tax band of €32,800 which will be an additional loss of €840 on top of the €1650 tax credit loss?

Moonbeam

You are probably correct but if you ring the revenue they will be able to tell you.

kellyj77

If true that is a ridiculous hit for one category of the population to take in one go. Over a €200 euro hit per month with the losss of both the tax credit and tax band

Kristopherus

kellyj77 wrote: »

If true that is a ridiculous hit for one category of the population to take in one go. Over a €200 euro hit per month with the losss of both the tax credit and tax band

Have a look at this: http://www.revenue.ie/en/press/budget/2014/budget-summary-2014.pdf

kellyj77

Thank.

So it looks like the qualifying conditions to obtain that tax band were amended slightly to the below:



Single or Widowed or Surviving Civil Partner, qualifying for
One Parent Family Tax Credit (2013), Single Person Child Carer Tax Credit (2014)

36,800 @ 20%
Balance @ 41%

36,800 @ 20%
Balance @ 41%

Previously i believe the tax band stated that it was applicable to those in receipt of the single parent tax credit.

So am i correct in saying that if you qualified for the single parent tax credit in 2013 you will still be entitled to the higher tax band even if you dont qualify for the new single person child carer tax credit?

angelfire9

kellyj77 wrote: »

Thank.

So it looks like the qualifying conditions to obtain that tax band were amended slightly to the below:



Single or Widowed or Surviving Civil Partner, qualifying for
One Parent Family Tax Credit (2013), Single Person Child Carer Tax Credit (2014)

36,800 @ 20%
Balance @ 41%

36,800 @ 20%
Balance @ 41%

Previously i believe the tax band stated that it was applicable to those in receipt of the single parent tax credit.

So am i correct in saying that if you qualified for the single parent tax credit in 2013 you will still be entitled to the higher tax band even if you dont qualify for the new single person child carer tax credit?

Nope
You have quoted it above yourself, you need to be in receipt of the Single Person Child carer tax credit in 2014 to get the higher band