Proprietary director in receipt of lone parent allowance query

[contemporary]

Just wondering is a Proprietary director in receipt of lone parent allowance entitled to a paye tax credit for this payment?

 

[ClubMan]

Do you mean One Parent Family tax credit or something else?

 

[contemporary]

No, a one parent allowance (payment like the UB), it used to be called the deserted wives allowance but renamed something else now

 

[ClubMan]

One-Parent Family Payment?

Do you know for a fact that this is assessable for income tax? I know that Jobseekers Benefit is but it's not clear if OPFP is from the SW website.

 

[contemporary]

http://www.citizensinformation.ie/c...amilies-and-children/deserted-wife-s-payments

It is assessable for income tax, my friends mother has been asked to pay tax on it after submitting a form 11, just wondering if she can apply a paye credit to it

 

[ClubMan]

I see. I would have thought that only PAYE workers could get this credit?

 

[contemporary]

So would I

[broken link removed]

This states you can claim if the income is subject to paye, (says social welfare payments) but its not due to income paid to proprietary directors but proprietary directors who are in the fca who get paye tax credits for their income from the department of defence as its paye income, very confusing....

 

[ClubMan]

This states you can claim if the income is subject to paye, (says social welfare payments)

It says Social Welfare pensions.

I would certainly ask Revenue, if not also an accountant/tax advisor, for clarification.

 

[Corcaioch]

The PAYE credit is available against emoluments assessed to Schedule E. Emoluments arising from a proprietary directorship are excluded for the purposes of the credit.

Taxable Social Welfare benefits (incl. lone parents allowance) are classified as "emoluments" which are assessable under Sch E and the PAYE credit is available against this income.

In your case you have both directors emoluments and Social Welfare and you are entitled to the credit against the Social Welfare allowance.