I'm waiting for a call back from Revenue.
Last year I received tax credit of €35. But this was due to fact that I did not return to employment till July. Tax was not deducted until last few weeks in December as my cumulative pay kept me under the threshold.
I am registered for income tax as I claim owner occupier relief. When I come to do my 2010 tax return I will include income from welfare (only source of income Jan-Jun), income from employment (Jul - Dec) and also a reduced rate of income from welfare (Jul - Dec). All of this is taxable. If my weekly tax credit was €35 for 2010 I will be taxed a hell of alot more than a single person. I thought I would have a higher tax credit as I am a single mother of 2.
Right now I just cannot see what incentive there is for me to work. Paying tax is not the issue, paying an unfair amount is!