For a self-employed person whose total 2020 income was €13000 (€2000 gross profit and €11000 PUP) should they still have a tax liability?
I earned significantly more than this last year but had no income tax liability just PRSI.
This year there is no PRSI liability but a tax liability.
It seems this is because the Earned Income Credit available is €1650 or 20% of your qualifying earned income, which means the amount of this credit is limited to €400 (€2000 x 20%).
The PAYE tax credit is allowable against social welfare payments but the Earned Income Credit appears not to be.
This appears to be discriminatory against the self-employed.
Is this correct and is there any solution such as an unclaimed credit?
Thanks in advance.
UPDATE: The PAYE credit applies to the PUP so both the earned income and PAYE credits need to be claimed on Form 11
I earned significantly more than this last year but had no income tax liability just PRSI.
This year there is no PRSI liability but a tax liability.
It seems this is because the Earned Income Credit available is €1650 or 20% of your qualifying earned income, which means the amount of this credit is limited to €400 (€2000 x 20%).
The PAYE tax credit is allowable against social welfare payments but the Earned Income Credit appears not to be.
This appears to be discriminatory against the self-employed.
Is this correct and is there any solution such as an unclaimed credit?
Thanks in advance.
UPDATE: The PAYE credit applies to the PUP so both the earned income and PAYE credits need to be claimed on Form 11
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