Revenue have released an important update (ebrief) details as per below….
Changes to personal tax credits and standard rate cut-off point
Tax and Duty Manuals Parts 15-01-07 (Employee (PAYE) Tax Credit) and 15-01-44 (Earned Income Tax Credit) have been updated to reflect changes made by section 6 of the Finance Act 2021.
Section 6 of the Finance Act 2021 increased a number of personal tax credits, along with the standard rate cut-off point, with effect from 1 January 2022 as follows:
- The value of the basic personal tax credit has increased by €50 per person. For married persons and civil partners jointly assessed to tax, the basic personal tax credit available for the 2022 year of assessment and subsequent years will therefore be €3,400, while in all other cases the value of the tax credit will be €1,700.
- The value of the Employee (PAYE) and Earned Income tax credits has also increased by €50 each. The value of each credit for the 2022 year of assessment and subsequent years will therefore be €1,700. The qualifying criteria for each credit remains unchanged.
- The standard rate cut-off point has also increased by €1,500 per person for the 2022 year of assessment and subsequent years.
(Source: Revenue)
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