Revenue Job Assist

[ditchhurler]

My sister recently qualified for this scheme. Her Standard Rate Band of tax was increased by €3810 and her Tax Credits were increased by €762 (20% of 3810).

Page 5 of Explanatory Leaflet IT58 on revenue.ie states of additional tax allowances that
"These allowances are marginally rated which means they are allowed at the individual’s highest rate of tax and appear as an increase to your tax credits and Standard Rate Cut Off Point on the Tax Credit Certificate."

She pays tax at 41% and will continue to do so, despite the increase in her standard rate. Does this mean that her credits should have increased by €1562.10 i.e. 41% of €3810 instead of €762?

 

[Graham_07]

My sister recently qualified for this scheme. Her Standard Rate Band of tax was increased by €3810 and her Tax Credits were increased by €762 (20% of 3810).

Page 5 of Explanatory Leaflet IT58 on revenue.ie states of additional tax allowances that
"These allowances are marginally rated which means they are allowed at the individual’s highest rate of tax and appear as an increase to your tax credits and Standard Rate Cut Off Point on the Tax Credit Certificate."

She pays tax at 41% and will continue to do so, despite the increase in her standard rate. Does this mean that her credits should have increased by €1562.10 i.e. 41% of €3810 instead of €762?

The increase in the Standard Rate Cut-off Point allows the extra to be earned at the higher rate before paying tax.

 

[ditchhurler]

Oh ok, that make sense, thanks.