Tax Credit Certificate (TCC)

Revenue issues a Tax Credit Certificate to every employee who makes a claim for tax credits. The certificate sets out in detail the amount of tax credits and standard rate cut-off point (SRCOP) that Revenue has determined to be due to the employee. Revenue issues a Tax Credit Certificate to the employee in the following circumstances:

• upon the employees first application for tax credits
• annually for each new tax year
• amended Tax Credit Certificate issued due to a change in individuals personal circumstances
• individual commences new/additional employment

Revenue will also issue a Tax Credit Certificate to an individuals employer, either on paper or electronically by means of a RPN file (2018- called P2C). CollSoft offers functionality to facilitate the import of the RPN file (2018- called P2C) to update the Revenue details of employees automatically within the software.

Information regarding the personal circumstances of the employee is NOT disclosed on the Tax Credit Certificate issued to the employer.
It only shows the total amount of the tax credits and SRCOP to which the employee is entitled and the tax basis to be used in applying the details of the Tax Credit Certificate against the earnings of the employee in that employment.


EMPLOYERS USING THE EMPLOYEES PAY, TAX AND USC DETAILS INCLUDED ON THE TAX CREDIT CERTIFICATE (P2C)

In most cases, the employer will use the pay, tax and USC figures from the RPN file (2018- called P2C). These pay, tax and USC figures should not be different from figures obtained from (say) the most recent cumulative P45 as the source of the figures will, in most cases, be the same.

The employee's previous pay, tax and USC details are included on the RPN file (2018- called P2C) to assist the employer in calculating the correct PAYE due. The pay, tax and USC figures are the most up-to-date figures available to Revenue. If the pay, tax and USC figures are not available, the RPN file (2018- called P2C) will be on a Week 1/Month 1 basis.

If the employer is aware that the pay, tax and USC figures on the RPN file (2018- called P2C) are incorrect, this should be brought to the attention of the relevant Revenue District as soon as possible.


Tax Credit Certificate: Example of Paper Tax Credit Certificate


The basis of deduction is stated at the top of the paper RPN file (2018- called P2C). Where deductions are to be made using the cumulative basis, the P2C will state that the certificate is effective from 1 January YYYY.
Where deductions are to be made using the week 1/month 1 basis, the RPN file (2018- called P2C) will state that the certificate is effective from 1 July YYYY… ‘on a Week 1/Month 1 Basis’.
The basis of deduction stated on the RPN file (2018- called P2C) applies to both PAYE and USC. Where an employee is on cumulative basis for PAYE, they will be on cumulative basis for USC, and vice versa. Where an employee is on a Week 1 basis for PAYE, they will also be on a Week 1 basis for USC, and vice versa.