Employee tax credit

[dangerhere]

Under what circumstances is a PAYE employee not entitled to the tax credit of 1490 Euro (2006)?

 

[Graham_07]

Where they are a proprietory director of a company.
A Spouse working for their spouse.
Certain restrictions apply to children working for parents

See also
[broken link removed]

 

[dangerhere]

This concerns a normal PAYE situation where the employee has only earned 1900 Euro as they did not work a full year.

 

[Graham_07]

This concerns a normal PAYE situation where the employee has only earned 1900 Euro as they did not work a full year.

If the earnings are only 1,900 and there are no other tax credits available against this then assuming none of the employee types listed above apply, then the employee credit is granted to the value of the earnings. So for earnings of €1,900 a credit of €380 would be allowed. ( 1,900 x 20% ) This basically covers the tax due on those earnings. The employee credit is only available against that party's employment. i.e. any unused surplus cannot be transferred say to a husband or wife's employment.