PAYE tax credit if employed by husband

[paddy26]

Hi,

I am recently married and am a 50% shareholder of a company which my new wife is a Director of (she has no shareholding). I am employed separately at the moment as a PAYE employee.

My new wife is an employee of the company (only in the last few months) and is drawing a small salary €18k. This is being remitted month and PAYE and PRSI/ LEVIES etc where appropriate are being applied.

My question is whether she is eligible for a PAYE tax credit in this case as she was an employee prior to us marrying. She has been a Director of the company since early 2009.

Many thanks for your help

 

[Graham_07]

She is not unfortunately entitled to the PAYE credit in this instance. Spouses of proprietory directors employed in their spouses companies do not get the credit. ALso applies to sole-trader situations where spouse employed by spouse.

 

[paddy26]

Does it matter that she was employed before we were married. Im not a Director (just shareholder). She the employee is a Director (not a shareholder). All since before we were married

 

[Graham_07]

If you look at the end of the page here You'll see that :-

A Proprietary Director is the company's beneficial owner or director who can control directly/indirectly more than 15% of company's ordinary share capital.

Before you married the situation would be different as she was not your spouse. However I believe that she is caught by the Revenue's rule on this now. She would be still entitled to it for the year in which you married provided she had sufficient income, so if that's 2009 it may be 2010 before she loses it. Of course she would be still entitled to it for any other unconnected PAYE employment.