PAYE allowance

F

fergaloh

Guest
On form 11, you claim PAYE tax credit ticking box 515 - it appears that the allowance is given in full regardless of the PAYE deducted.
My mate paid 2.54 PAYE in 2007 and appears will get a full allowance (which is great), but on that basis every self employed person should chase a PAYE job for a day to get the benefit.

Can anyone confirm that the tax credit is unrelated to the PAYE deducted?
 


it is linked to gross pay not paye deducted. if your gross pay is 1000 it resticts paye credit to 20% of this which is 200. it keeps resticting till you have enough paye income to cover entire paye credit
 
post might sum it up where the PAYE credit and PAYE -v- self-employed is concerned. Some reform is needed.
 
Thank you both
I was uncertain whether the PAYE tax credit could be carried over to non-PAYE income
Agree that the system needs to be improved - it does no favours for self employed low earners who have little deductions to claim.
 
but on that basis every self employed person should chase a PAYE job for a day to get the benefit.
Click to expand...
Can anyone confirm that this is the case?
If I get a job for a day and become an employee, then I can claim this credit?

Self employed people can 'help each other out' and become employees in each other's companies for a day.
 
leghorn said:
If I get a job for a day and become an employee, then I can claim this credit?

Self employed people can 'help each other out' and become employees in each other's companies for a day.
Click to expand...

If you get a job and become an employee, yes you can claim this credit.

However if you get a job for only a day, the Revenue can disallow the benefits as artificial tax avoidance.
 
Thanks for clarifying that.

This is something worth investigating further. Maybe become 'employed' for a month with a reciprocating company. How are the revenue going to prove this is tax avoidance?

I should get this credit anyway - but that's another day's argument.
 
Just so I have this right in my head.

A soletrader without a PAYE income OR a person will a PAYE income cannot claim the PAYE tax credit on form 11 (PAYE income wouldn't be filling in that form anyway)

BUT a person who is a soletrader and has a PAYE income can claim back the PAYE tax credit even though it would already have been applied on the PAYE salary?
 

The PAYE tax credit box should be ticked where the taxpayer has Irish PAYE type sources. e.g. Employment, jobseekers benefit, state pensions etc. It is restricted to that amount relevant to the PAYE type income. It is not claimable by a sole trader with no other income than the self-employment.
 
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