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Client Centre

Tax Credits - are you claiming all of yours?


Now that the dust has settled from Budget 2015 we bring you a list of the tax credits etc that will apply from 1st January 2016.

In many cases, people do not claim everything they should be claiming for or, more often, the “split” of credits and / or low-rate cut-off between spouses and / or civil partners is not being done in the most tax-beneficial way. Contact us if you have any queries in this regard.

So, do you want to see if can you save some money on your tax bill?. Here is a list of some tax credits for 2016...are you claiming for everything you're entitled to?..with the year end approaching, it's a good time to review what you have paid and whether there is something you've missed. Don't forget your medical expenses too!!!...................


Income Tax 2016

Tax Credits

Single Person €1,650
Married €3,300
Widowed (no dependant children) €2,190
Additional Credit for one Parent Family Widowed & Other €1,650
PAYE €1,650
Blind Allowance €1,650
Dependant Relative €70
Household Water charges credit €100
Age Allowance 65 & over €245
Home Carer’s Allowance €810
Limit for Medical Expenses per adult €1,000

Exemption Limits

Single/Widowed Married
Aged 65 + €18,000 (€36,000)


“Low-rate cut-off” (Standard Rate Bands)

Single / Widowed     – No dependent children          €33,800

                                  – With depenedent children     €37,800

Married                     – One income                           €42,800

                                  – Two incomes                        €42,800

                                         (Plus) *                   Up to €24,800

( * If second income is less than €24,800 then this increase is limited to amount of 2nd income.)


A worked example..

Where we come across issues with an incorrect division of the Standard Rate bands would be if one spouse earns a lower amount than the Standard Rate Band allocated to him or her.

For example, a couple earn €80 between them. The wife earns €50k with the husband earning the remaining €30k.

For the sake of  perceived “fairness” they have split their “joint” Standard Rate Band right down the middle, giving them €33,800 each. What this means, in simple terms, is that they are both entitled to earn €33,800 before paying tax at the higher rate of 40%.

Clearly the husband in this case has unused Standard Rate Band of €3,800 which, if it were transferred to his wife, would save them a whopping €760 each year. Better in their pocket than the tax-man’s!

The saving would be even greater if the husband’s income was say, €25k, in which case they could have been overpaying their income tax to the tune of €1,760 each year!

So, isn’t it worth checking your tax credit certificate etc just to make sure..?

Contact us if you want help with this..


Steadfast Financial
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