EU farm pension- PAYE credit?

[funcrusher]

Should someone receiving the EU Farm Early Retirement Scheme get the PAYE tax credit? My wife is a retired farmer and has this pension which is taxed under the PAYE system. She also currently has a very small self-employed income, plus rent from the farmland and a small amount of interest. In her first year of retirement she was not given the PAYE tax credit in her annual tax assessment. (we have separate tax assessments) But in her second year she was given the PAYE tax credit.

Thanks in advance to anyone who can tell us the rules.

 

[allthedoyles]

This is what PAYE stands for : Source - www.revenue.ie

PAYE stands for Pay As You Earn. The PAYE system is a method of tax deduction under which a person's employer calculates the tax due and deducts it each time a payment of wages, salary, etc. is made to an employee, and a method of collecting PRSI (Pay-Related Social Insurance).

 

[T McGibney]

This is what PAYE stands for : Source - www.revenue.ie

PAYE stands for Pay As You Earn. The PAYE system is a method of tax deduction under which a person's employer calculates the tax due and deducts it each time a payment of wages, salary, etc. is made to an employee, and a method of collecting PRSI (Pay-Related Social Insurance).

Sorry, I don't understand your point, nor your apparent emphasis of the word 'employer'? PAYE applies in some situations where there is no employment contract or situation, for example pension annuity payments by pension funds.

 

[Leaky1]

Funcrusher,

the Paye Tax Credit is due for someone who is in receipt of the Early Farm Retirement Pension. The pension is taxed under the Paye system and a P60 is issued at the end of the year. The pension itself should be included on the Form 11 at pg 9, line 224 under the section Irish Pensions Received - this is assuming you're completing the 2009 Form11 of course.

I'm not sure why the other poster is emphasizing the word 'employer'.
The Paye credit is due for employments, pensions and also for taxable Social Welfare payments.

 

[funcrusher]

Thanks Leaky1. Yes, my wife completes a form 11 every year (being previously a farmer). She obviously needs to activate a retrospective claim for 2008. Incidentally, I receive an occupational pension from the UK from a spell there 30 years ago. That is PAYE taxed in the UK, but no UK tax is actually deducted because it doesn't exceed the UK personal tax threshold. It is then added to my Irish income here in Form 11 and taxed in ireland. Should I get an Irish PAYE tax credit for that ?? I imagine I should under EU rules of cross-border equality.

 

[Leaky1]

Incidentally, I receive an occupational pension from the UK from a spell there 30 years ago. That is PAYE taxed in the UK, but no UK tax is actually deducted because it doesn't exceed the UK personal tax threshold. It is then added to my Irish income here in Form 11 and taxed in ireland. Should I get an Irish PAYE tax credit for that ?? I imagine I should under EU rules of cross-border equality.

If the pension is taxed under a similar system then you will be entitled to claim the Paye Tax Credit for it. As you said, it is taxed under the UK Paye system.