Tax credits? Limited company director and wife

Ally Dick

Hi. I was wondering could I confirm something please? I am the proprietary director of a limited company with 100% shares. My wife is the secretary of the limited company, and we are both drawing an income.

Are my tax credits for 2018 = €1650 + €1150 = €2800?

Are my wife's tax credits for 2018 = €1150?

soc

Ally Dick wrote: »

Hi. I was wondering could I confirm something please? I am the proprietary director of a limited company with 100% shares. My wife is the secretary of the limited company, and we are both drawing an income.

Are my tax credits for 2018 = €1650 + €1150 = €2800?

Are my wife's tax credits for 2018 = €1150?

You would both get the Personal Tax Credit of €1650
And both of you would get the Earned Income Tax Credit of €1150

Ally Dick

soc wrote: »

You would both get the Personal Tax Credit of €1650
And both of you would get the Earned Income Tax Credit of €1150

I thought I read somewhere that the spouse of a proprietary director cannot claim the personal tax credit??

relax carry on

Ally Dick wrote: »

I thought I read somewhere that the spouse of a proprietary director cannot claim the personal tax credit??

That's the PAYE credit not personal.

Ally Dick

soc wrote: »

You would both get the Personal Tax Credit of €1650
And both of you would get the Earned Income Tax Credit of €1150

Thanks for the responses. I have double checked with my accountant and we both get the Personal Tax Credit but only I get the Earned Income Tax Credit. My wife cannot get it as we are both employed by the one limited company of which I am the director

Bobby1984

Ally Dick wrote: »

Thanks for the responses. I have double checked with my accountant and we both get the Personal Tax Credit but only I get the Earned Income Tax Credit. My wife cannot get it as we are both employed by the one limited company of which I am the director

I am confused as to why your wife cannot also claim the Earned Income credit! Does she work for this company and does she draw a salary?

See Example 6 on the Revenue link below where the assessable spouse claims for both

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-44.pdf

Ally Dick

My mistake. My wife is self employed and also does a small bit of secretarial for me too. So my accountant means that she can only avail of the self earned credit once, not twice. Sorry for any confusion