Advice regarding tax credits

[Smokeygirl]

Hello,
I worked in Ireland for 3 years and this year 1st January I was transferred to germany for 1 year. I am on a German contract and paying German tax.
Thankfully I have the German holidays too!!!

Anyway, before I left HR mentioned that when I return to working on an Irish contract at home on the 1st January 2006, i may not have to pay as much tax as normal due to outstanding unused tax credits. That they can be claimed and used in the tax year 2006.
Probably too good to be true but would like impartial advice.

Looking forward to the responses!!!!

 

[dam099]

Anyway, before I left HR mentioned that when I return to working on an Irish contract at home on the 1st January 2006, i may not have to pay as much tax as normal due to outstanding unused tax credits. That they can be claimed and used in the tax year 2006.
Probably too good to be true but would like impartial advice.

Are they saying that you can bring forward unused 2005 tax credits to 2006? If this is what they are saying they are incorrect. Unused tax credits would only be of benefit if you were starting back later in the year, you would have unused 2006 tax credits that you could use over the remainder of the year.

 

[Glenbhoy]

Smokey is correct, unless there is some loophole of which i am aware, although I have also worked abroad for a while and never came across it!! It would probably be advantageous for you to get to paid through ireland for the remainder of your contract as you would have full tax credits for the year. As far as I know, most european countries don't do this and only allocate tax credits (or their own particular brand of them) on a pro rata basis. This is assuming that you've used up that generous holiday entitlement!! It is unlikely that your firm will agree to the hassle that this may cause (not much at all really, although HR people don't like doing anything out of the ordinary, so they'll probably rebuff it).