Maintenance - Tax Relief

[mc_arigead]

Can someone please confirm how relief for legally enforcable maintenance is claimed without waiting until year end?

If I pay maintenance of 12 x 1000 = 12K I know I can claim a deduction of the 12K and reduce the gross amount I pay tax on.

If I will be paying tax at 40% does that mean I get a credit of 12k * 40% = 4.8K or is relief at the standard rate so 12K * 20% = 2.4k

or do I have it all wrong a relief is calculated some other way?

 

[torblednam]

Read this:

Maintenance Payments Relief

This section explains what types of maintenance payments can be made and how they are taxed

www.revenue.ie

Fill in one of these:

https://www.revenue.ie/en/additional-incomes/documents/claim-for-relief-for-legally-enforceable-maintenance-payments.pdf

 

[mc_arigead]

Thanks, I read that but I'm still unsure how/when I get the relief. If I'm to start payment in say Jan 2020, can I get relief on my salary monthly from Jan? If so when the Revenue Payroll Notification is issued to my employer how is the relief applied. What will appear on my amended tax credit certificate?

 

[Ciru75]

Thanks, I read that but I'm still unsure how/when I get the relief. If I'm to start payment in say Jan 2020, can I get relief on my salary monthly from Jan? If so when the Revenue Payroll Notification is issued to my employer how is the relief applied. What will appear on my amended tax credit certificate?

You can get relief during the year.

If it works the same as it did pre-PAYE modernisation, you'll have an increased cut off point and increased credits which will give you relief at 40% if you're paying tax at 40%but you'll have to claim relief from USC and PRSI at the end of the year.