Your tax credits impact your pay for the whole year, which makes January an important time to carry out a check of the tax credits which Revenue has granted you for 2021.
It is beneficial to check-up on what tax credits Revenue is planning to give you for 2021. Often their information may be out of date for your current circumstances as it can affect your taxes.
For example, if there have been any changes to your personal or family circumstances or your work life, you may be entitled to extra tax credits. Or in other cases, there may be some tax credits carried over from 2020 that you are no longer entitled to.
If you do not carry out a quick check of your tax credits or do not notify Revenue about any changes, on the one hand you could end up paying more tax than you should, which of course nobody wants to do! Additionally, it is good to ensure you are not paying less tax than you should be; this is to avoid getting an unexpected tax bill for the difference in the future, which again nobody wants!
How can you check your Tax Credits?
It’s quick and easy to review and check your tax credits; the first step is to log into your Revenue My Account.
From here, click on ‘Manage your Tax Credits Service’. Now you can quickly and easily review and update Revenue about any changes to your tax credits.
What changes to your circumstances could affect your Tax Credits?
Some of the changes to your circumstances which may affect your tax credits and which you should notify Revenue about include if you:
- Get married or form a civil partnership
- Formally separate or divorce
- Start or stop caring for a child as a single parent, or if someone that you were claiming for starts or stops receiving a disability benefit
- Become widowed
Another scenario to be aware of for those who are married or in a civil partnership, and are jointly assessed. If your partner is a PAYE worker and is unemployed, you may be able to transfer their unused tax credits to yourself.
Transferring unused tax credits will increase your tax credits and reduce the amount of tax you will pay, but this only applies if your partner pays taxes under Pay as You Earn (PAYE), not if they are self-employed.
Don’t forget that you may wish to transfer their portion of tax credits back to them again when your partner or spouse is back to work.
What Tax Credits are Available?
After Revenue has processed any changes to your tax credits, it will be updated on your account and applied to your next payroll by your employer.
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