Tax credits ?

2qk4u

I started a job on Monday and I was self employed so Ive switched to PRSI and today I got a tax credit statement.
Can someone please explain in simple terms what this is about ?
Also how long will I be on emergency tax ?
Why are my wifes tax credits higher than mine ?
Anything else I should know ?

Thanks..

premier10

2qk4u wrote: »

I started a job on Monday and I was self employed so Ive switched to PRSI and today I got a tax credit statement.
Can someone please explain in simple terms what this is about ?
Also how long will I be on emergency tax ?
Why are my wifes tax credits higher than mine ?
Anything else I should know ?

Thanks..

PRSI - I assume you mean you have switched to PAYE!

The letter you received just informs you of your standard rate band in other words how much gross income you can earn in the year at 20% balance then at higher rate.

Your employer usually receives a copy at the same time as you, so you should'nt be on emerg tax for more than 1 week anyway( week gone by) if you have been paid yet.

You wife's credits are probably higher because it meant she was paying less tax on a weekly basis when you were self employed.

You can get that changed now if you are on a higher income than her or she is not using up all her standard rate band.

Best of luck with the job

2qk4u

premier10 wrote: »

PRSI - I assume you mean you have switched to PAYE!

The letter you received just informs you of your standard rate band in other words how much gross income you can earn in the year at 20% balance then at higher rate.

Your employer usually receives a copy at the same time as you, so you should'nt be on emerg tax for more than 1 week anyway( week gone by) if you have been paid yet.

You wife's credits are probably higher because it meant she was paying less tax on a weekly basis when you were self employed.

You can get that changed now if you are on a higher income than her or she is not using up all her standard rate band.

Best of luck with the job

Thanks for the info, will I just ring the tax office to balance out the levels as I will earn more than my wife ?

premier10

Yea, just give them a ring