The Finance (No. 2) Act 2013 was enacted on the 18th December 2013. There was no change to the standard rate or higher rate of income tax, which remain at 20% and 41%. The only change to tax credits was the replacement of the One Parent Family tax credit with the Single Person Child Carer tax credit effective from the 1st January 2014. The Single Person Child Carer tax credit is the same value as the One Parent Family tax credit (€1,650) and the person in receipt of the Single Person Child Carer tax credit is also entitled to the increased Standard Rate Cut Off Point (SRCOP) of €36,800.

Standard Rate Cut-Off Point (SRCOP) 2014

Single/Widowed Person or Surviving Civil Partner,                             First €32,800 @20% without dependent children                                                                              Balance @ 41%   Single/Widowed Person or Surviving Civil Partner,                             First €36,800 @20% Qualifying for the Single Person Child Carer tax credit                        Balance @ 41%   Married or in a Civil Partnership, one income                                          First €41,800 @20% Balance @ 41% Married or in a Civil Partnership, two incomes                                        First €41,800 with an increase up to €23,800 @ 20% Balance @ 41%

Personal Tax Credits for 2014

Single/Widowed Person or Surviving Civil Partner tax credit                            €1,650 Married or Civil Partnership Tax Credit                                                                        €3,300 Widowed Person or Surviving Civil Partner in year of bereavement               €3,300 Widowed Person or Surviving Civil Partner – Additional relief for Subsequent years after year of bereavement -          With no qualifying child                                                                                            €540 -          With a qualifying child 1st year after bereavement                                                                                                  €3,600 2nd year after bereavement                                                                                                €3,150 3rd year after bereavement                                                                                                €2,700 4th year after bereavement                                                                                                €2,250 5th year after bereavement                                                                                                €1,800 Single Person Child Carer Tax Credit                                                                            €1,650 PAYE Tax Credit                                                                                                                     €1,650 Home Carer Tax Credit                                                                                                         €810 Age Tax Credit – Single/Widowed Person or Surviving Civil Partner            €245 Age Tax Credit – Married couple or Civil Partnership                                           €490 Blind Tax Credit: -          Single Person, or one Spouse or Civil Partner blind                                    €1,650 -          Both Spouses or Civil Partners blind                                                                  €3,300 -          Allowance for guide dog                                                                                           €825 Incapacitated Child Tax Credit                                                                                        €3,300 Dependent Relative Tax Credit                                                                                        €70  

What questions do you have?

We are happy to help. Please post your comment below or call Louise Edwards on 01 677 9000. Alternatively, send her an email: ledwards@cooneycarey.ie

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