The changeover to the new tax credit system, which was covered in last week's Family Money, has prompted several reader queries. The Revenue Commissioners assisted with the responses to the following readers' questions.

Mr JS writes: "I have still not received the new income tax notice. I got a letter from the Revenue Commissioners last week but it was for the previous tax year not the new one and was in the old format.

I rang them and they said that just because I hadn't received anything yet didn't mean that it wasn't on the way. But what if I don't get the notice by April 6th?"

If it happens that you actually don't get the notice mentioned, you should phone your tax office again at the number shown on the earlier letter and ask for a notice of tax credits for the short tax year from April 6th to December 31st, 2001.

Ms AD was previously receiving lone parent allowance, but now her income and circumstances have changed. "I am now living with my partner and I have informed the tax office of this change. However, I still have a child dependant so am I entitled to receive a tax credit for this? The fact that I am neither married nor a lone parent seems to place me in some kind of limbo. Am I mistaken?"

The Revenue is clear on this one, the one-parent family tax credit is not available in the case of a married couple or in the case of any couple who are living together "as man and wife".

"The one-parent family credit is a credit which you may claim if you are a single parent (whether widowed, single, deserted or separated) and you have a child who is dependent on you."

To claim the credit, complete a form OP1 or TFA1, which are available at any tax office.

Mr MH wants to know how superannuation is allowed for?

"I hope I am right in thinking that you subtract your superannuation percentage before you make any other calculations, so that your gross pay is actually the figure after the superannuation has been deducted. Please tell me I'm correct!"

Yes, Mr MH is right. Your employer deducts the superannuation (pension) contributions from gross pay and in this way you automatically get tax relief on the full contributions.

Mr RT is retiring soon and has asked for help in working out how the new system affects him.

"Can you let me know how dividend income is treated? It seems to have been deducted from my standard rate allowance - given that I would have already paid tax at the standard rate how could this be? Also in your example you had Mr Red's standard rate cut off point at £1,644.45 per month. If the standard rate band is £20,000 per annum, should this not be £1666.66?

The gross amount of the dividend is liable to income tax at Mr RT's highest rate of tax. He is entitled to credit for the dividend witholding tax deducted at standard rate.

Under the tax credits system, the standard rate cut off point is reduced by the amount of the gross dividends received in order to collect tax due on the difference between the standard rate of 20 per cent and the higher rate of 42 per cent. For example, an individual is in receipt of gross dividends of £1,000 from which DWT of £200 has been deducted. The income tax liability arising is £1,000 at 42 per cent or £420. Take away the £200 credit for DWT and the net tax due is £220.

The standard rate cut off point is reduced by £1,000. Mr Red's cut-off point has been reduced due to benefit-in-kind.