Tax credit

[Shelby219]

If an adult child is employed full time in my business (sole trader) should they be entitled to the same credits as my other employees?

 

[RedOnion]

Yes. So long as they are an employee and not a business partner (which also changes their PRSI status).

Edit: incorrect. See post below.

 

[Mary55555]

Hello,

I stand to be corrected but I don’t think they can claim the paye tax credit .. I have attached a link..

https://www.revenue.ie/en/personal-...and-employment/employee-tax-credit/index.aspx

 

[RedOnion]

Apologies, @Mary55555 looks correct. I mistakenly thought the restriction was just a spouse.

 

[Shelby219]

She is my daughter but is in her twenties and it will be her full time and only employment, surely she is being discriminated against if not being treated the same as the other employees?

 

[jpd]

My reading of the link implies she is entitled to the employee tax credit

 

[RedOnion]

I'm not actually sure any more.

There's a longer version explanation from Revenue, and it seems there is an exemption for children of self employed people, so long as conditions are met (essentially that it's legitimate, insurable employment).

https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-15/15-01-07.pdf

 

[Mary55555]

Hi .. thanks red onion ..

I think you have got it!! So I think based on the link you have shared that provided the employee satisfied the criteria they should get it .... talk about refresher course!!

 

[RedOnion]

Hi Mary,

The bit that threw me was my personal experience is with the family farm. Farmers children can't normally get the credit for working on the farm - but the reason is if they live at home they don't have to pay PRSI. And paying PRSI is one of the conditions for the exception. Or something like that.

 

[Shelby219]

Thanks for your help