Tax credits divided between 2 jobs...

Roonbox

Hi lads ...

My girlfriend is working 2 jobs, 4 days a week in one and 1 day a week in the other.. Every week it seems she is being screwed with tax - The tax office claim her tax credits are set up with 80% going to the 4 day week and 20% on the other. She isnt earning a foirtune and should really not be paying much tax at all...

Has anyone eny experience on the best way toset up your tax credits with two jobs to benefit the most?

I appreciate any responce...

Im also not getting much joy out of www.citizensinformation.ie...


Cheers.....

Snowdrop

I presume she is not paying tax in one of the jobs? The best way to apportion the tax credits depends on her total taxable income in each job.

The simplest way may be to calculate 20% of the total annual taxable income from the lowest paid job and transfer that amount of tax credits to that employer. Likewise, allocate an amount of cutoff equal to the annual taxable earnings of the lower paid job.

Allocate the balances of tax credits and cutoff to the other job.
.
For example:

Job A-€100 per week. €5200 per year @ 20% tax=€1040 of tax credits required. €5200 cutoff required.


Hope this helps. Feel free to PM if you have any other questions.

Snowdrop

If your girlfriends income fluctuates each week, make a best estimate of yearly earnings. it can always be reviewed it at any time.

If you feel too much tax was paid last year or in previous years, ask revenue to do a balancing statement and a refund will be issued if applicable.

At any stage in the tax year, you can re-apportion the tax credits and this can often result in the tax refund being made through payroll rather than having to wait until after the end of the year.

Roonbox

Thank you snowdrop.Appreciate the reply