does anyone know how much a tax credit equates to roughly in euros? if i am entitled to claim back 160 credits from previous years in credits, what roughly is this worth to me? cant find this info anywhere. even an indication would help me understand the system a little better. thanks
tax credit in euros?
- Thread starter hgf
- Start date
WaterSprite
Registered User
- Messages
- 1,309
Isn't a tax credit (as opposed to a relief) a credit for tax presumed to be paid? So e.g. the single person's 2008 tax credit is €1,830, meaning that, if you pay tax at the standard rate, you can earn 9,150 before paying tax? In the absence of the credit, you would have to pay 20% of that 9,150 but because you get "credit" for tax paid in the amount of that 1,830, then you don't pay tax to that amount.
So a 160 tax credit would be worth 160, no? If the 160 was a relief, then I'd agree with the previously posted calculation.
Sprite
So a 160 tax credit would be worth 160, no? If the 160 was a relief, then I'd agree with the previously posted calculation.
Sprite
Correct. Subject aways to the fact that any additional tax credit can be worth no more than the actual tax paid in the year before that additional tax credit. So if net tax paid is say €1,000 and an additional tax credit is due of €160 that means you get €160 back. If actual tax paid is €100 and an additional tax credit is due of €160 then you get back the €100.
Apologies - I mis-read the OP.
allthedoyles
Registered User
- Messages
- 1,011
Look hgf - I will simplify this for you.
The rate of tax is 20 % - ( 1/5th )
So a tax credit is one fifth of a hundred .
If you want to know how much a tax credit is in actual euros , what you do is multiply the figure by 5
So , if you have a tax credit of 160 . You must multiply this by 5 to find out exactly how much euros you are talking about.
Therefore 160 tax credit is 800 euro ( 160 x 5 ) = 800
Tax credits have nothing to do with tax at 41 % , because tax credits are given at the standard rate ( 20 % )
The Standard Rate Cut-off point ( SCOP ) determines whether you pay tax at 20 % or 41 % . - NOT your TAX CREDIT .
The rate of tax is 20 % - ( 1/5th )
So a tax credit is one fifth of a hundred .
If you want to know how much a tax credit is in actual euros , what you do is multiply the figure by 5
So , if you have a tax credit of 160 . You must multiply this by 5 to find out exactly how much euros you are talking about.
Therefore 160 tax credit is 800 euro ( 160 x 5 ) = 800
Tax credits have nothing to do with tax at 41 % , because tax credits are given at the standard rate ( 20 % )
The Standard Rate Cut-off point ( SCOP ) determines whether you pay tax at 20 % or 41 % . - NOT your TAX CREDIT .