Tax credits – are you receiving all yours?
Proprietory directors are entitled to the earned income credit. It provides for a maximum tax credit of €950 (€550 for 2016) (computed by reference to the standard rate of income tax) in respect of an individual’s earned income.
We have identified for a number of clients, situations where the Revenue, in allocating tax credits, either omitted to provide this credit or worse, gave the employee tax credit of a higher amount when it was not due, creating a balancing liability that would fall due when filing income tax returns.
Best to check your credits before January payroll is run.