Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Tax credits advice

Options
  • 21-01-2019 9:54pm
    #1
    Ally Dick
    Registered Users Posts: 12,668 ✭✭✭✭


    Sorry. I am back with this old chestnut question.

    I am the proprietary director of a limited company. My wife is self employed, in a different business. I work as an IT consultant. I pay my wife a modest wage for secretarial work that she does for me.

    When I pay myself and my wife, from the company, what are the tax credits I can utilise?

    Personal Tax Credit €3300
    Employee Credit €1650
    Earned Income Tax Credit 1350

    I am very confused about what tax credits to claim

    I'd be very grateful for any advice


Comments

  • Options
    #2
    Ninthlife
    Registered Users Posts: 2,243 ✭✭✭Ninthlife


    Ally Dick wrote: »
    Sorry. I am back with this old chestnut question.

    I am the proprietary director of a limited company. My wife is self employed, in a different business. I work as an IT consultant. I pay my wife a modest wage for secretarial work that she does for me.

    When I pay myself and my wife, from the company, what are the tax credits I can utilise?

    Personal Tax Credit €3300
    Employee Credit €1650
    Earned Income Tax Credit 1350

    I am very confused about what tax credits to claim

    I'd be very grateful for any advice

    Spouse of a proprietary director cannot claim the Employee tax credit.

    You can claim your personal tax credit of 1650 plus your spouses if they are not utilising it agsinst their own income.

    You can claim the earned income credit also


  • Options
    #3
    Ally Dick
    Registered Users Posts: 12,668 ✭✭✭✭Ally Dick


    What about the €3300?

    My salary works out at €60000 gross. My wife gets €5750 gross.


  • Options
    #4
    Ninthlife
    Registered Users Posts: 2,243 ✭✭✭Ninthlife


    Ally Dick wrote: »
    What about the €3300?

    My salary works out at €60000 gross. My wife gets €5750 gross.

    The 3300 is made up of your personal tax worth 1650 and your spouses 1650

    As she is earning 5750 she will utilise some of the 1650 to cover tax owing on her income


  • Options
    #5
    Ally Dick
    Registered Users Posts: 12,668 ✭✭✭✭Ally Dick


    Ninthlife wrote: »
    The 3300 is made up of your personal tax worth 1650 and your spouses 1650

    As she is earning 5750 she will utilise some of the 1650 to cover tax owing on her income

    Thanks. Would you mind telling me the total tax credit open to us so, please? I am still a bit confused


  • Options
    #6
    Ninthlife
    Registered Users Posts: 2,243 ✭✭✭Ninthlife


    Ally Dick wrote: »
    Thanks. Would you mind telling me the total tax credit open to us so, please? I am still a bit confused

    Total tax credits available to you under joint assessment is 4650


  • Advertisement
  • Options
    #7
    Ally Dick
    Registered Users Posts: 12,668 ✭✭✭✭Ally Dick


    Ninthlife wrote: »
    Total tax credits available to you under joint assessment is 4650

    Thank you very much. That is much appreciated. I've amended the figures on Revenue. Cheers


Advertisement