Tax Crdit Help!!!!

galwaydude18

Does anyone know how to claim back tax credits???

seamus

galwaydude18 wrote:

Does anyone know how to claim back tax credits???

You don't claim back tax credits, your employer should autmatically offset them against your wages.

What's the problem?

galwaydude18

someone tole me you can claim money back from tax credits that have been built up?

seamus

Yes....but that depends on what you've been paying up until now.

If your employer has been paying tax normally, then you probably don't have any money you can claim back. If your employer hasn't been paying tax, then you'll have to give money to the Revenue. If you have a circumstance that gives you some tax relief (renting for example) and you haven't declared it, then you may be able to claim some tax back.

You're going to have to be more specific.

galwaydude18

well i was wondering can i claim the money back from the tax credits i have built up over the last four years. its just im giong to college in september and the money would be a great help to me!!!

galwaydude18

Seamus can you please advise me on this?

jo.king

Guys, go to www.taxback.com there great - a friend of mine got back over a grand and they do ALL the work!

seamus

OK.

Quick and dirty to tax credits.

At the start of the fiscal year (January), you are give a declaration of tax credits. This will detail your tax credit entitlement for the whole year, and also broken down into per month and per week.
How many tax credits you recieve you receive is based on your circumstances, such as age, marital status, living situation, and a whole pile of other criteria.

This year, you pay tax at the standard rate of 20%, for every euro you earn under €28,000 (?). So for example, if you earn €400 basic per week (€20,800) per year, then your payable tax on that €400 is 20% of that, or €80.

Now, let's say you're entitled to 2,600 tax credits per year (50 per week). You deduct your tax credits from your gross tax payable, and you have your net tax payable, so this week you will pay €30 euro tax, and tax home €370 in your hand.

Tax credits are based on the entire year, so you do carry tax credits from week to week. But you don't carry them from year to year.

So in our above example, you're liable for €4,160 in tax. Since you have 2,600 tax credits, you will only have to pay (4,160 - 2,600) = €1,560 in tax that year.

But let's say you're only working part time this year, and you only earn €10,500. You're liable for €2,100 tax, but you have 2,600 tax credits. So you take away the tax credits and discover that you don't have to pay any tax. What about the 500 left over? Well, nothing, you can't carry them from year to year. They're gone.

Answer your question?