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Earned Income Credit and how to apply

  • 01-02-2017 7:59pm
    #1
    Registered Users Posts: 41 ✭✭✭ dave987


    Hi all,

    Just looking for a bit of advice.

    I am a trainee bookkeeper, and I am getting some practice doing my partner's books. They are self-employed, a proprietary director of an LLC.

    I'm just wondering how to apply the new Earned Income Credit. Looking at their accounting records from last year, the personal credit was taken off their monthly pay spread over the 12 months, like an employee's would, but the Earned Income €550 last year) was not taken off the monthly tax bill, but only showed up on the P60 at the end of the year.

    How come the EIC isn't taken off with the Personal Credit every month, like in the case of a normal Employee's tax credits? But the Personal is?

    Hope that makes sense! Any advice greatly appreciated.


Comments

  • Closed Accounts Posts: 322 ✭✭ Heisenburg81


    dave987 wrote: »
    Hi all,

    Just looking for a bit of advice.

    I am a trainee bookkeeper, and I am getting some practice doing my partner's books. They are self-employed, a proprietary director of an LLC.

    I'm just wondering how to apply the new Earned Income Credit. Looking at their accounting records from last year, the personal credit was taken off their monthly pay spread over the 12 months, like an employee's would, but the Earned Income €550 last year) was not taken off the monthly tax bill, but only showed up on the P60 at the end of the year.

    How come the EIC isn't taken off with the Personal Credit every month, like in the case of a normal Employee's tax credits? But the Personal is?

    Hope that makes sense! Any advice greatly appreciated.

    They can select it on their form 11 for 2016 and will get a credit euro for euro for the 550.
    For 2017 just manually include it in the payroll software.


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