Retiring Couple PAYE Credit - Only 1 has a private pension

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fayf

Registered User
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Helping out some friends, who are retiring this year, and they are planning the future.

Have given them the usual
Information on what to apply for :
Household Benefits Package, Fuel Allowance, State Contributory Pension.

Both will have full entitlement, to the “full rate” State Contributory Pension.

Question is, as only one of them, has a small private pension, likely to be approximately 8k per annum, does this mean that they will only receive one PAYE Tax credit ?

If they both get the PAYE Credit, they can earn €39,970, PAYE tax free, with the couple age related credits of €490 added, this drops by €8,875, to €31,095, if only one of them will get the PAYE tax credit.

My understanding is they will both get it, as they will have no other income other than state contributory pension and that modest private pension.
 
Can't they automatically receive €36k tax free and, if their combined pension income exceeds that, then they will probably get marginal relief on the excess?

Tax credits and reliefs for people over 65

There are some tax reliefs specifically for people aged over 65. This page also gives an overview of other tax reliefs that may be relevant.
www.citizensinformation.ie www.citizensinformation.ie

Exemption limits

This page explains exemption limits on certain taxes.
www.revenue.ie www.revenue.ie
 
Yes, they can avail of the 36k exemption for sure, and Marginal Relief if required.

But, if they both can claim the PAYE tax credit, the PAYE tax free income amount, jumps to €37,950( my previous total, of €39,970 was incorrect)
1775 x 4 + 490 = total tax credits of €7,590
 
From Revenue website.....

Employee Tax Credit
You can claim the Employee Tax Credit if you receive income that is taxable under the Pay As You Earn (PAYE) system. This includes:

wages
benefit in kind
occupational pensions
Department of Social Protection (DSP) income.
 
bstop said:
From Revenue website.....

Employee Tax Credit
You can claim the Employee Tax Credit if you receive income that is taxable under the Pay As You Earn (PAYE) system. This includes:

wages
benefit in kind
occupational pensions
Department of Social Protection (DSP) income.
Click to expand...
Excellent, many thanks, i missed that !
 
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