Question on part time vs full time taxation

TripleAce · 19-02-2011 7:34pm #1

Hi,

quick question around taxation.

Suppose somebody gets 50k on a full time job, paying 20% up to 32k and higher tax for the remaining.

Then this person wants to switch to part time employment for the same job and would get therefore 25k salary (half). Would this be charged 20% all the way or would the tax rate also half and therefore would be 20% up to 16k and higher rate for the remaining 9k?

Also do tax credits get halved too with part time employment?

Appreciate your help.

Alan Shore · 19-02-2011 7:47pm

A single person is entitled to the €32,800 at 20% and the tax credits whether your income is 25k or 50k.

TripleAce · 19-02-2011 8:51pm

Alan Shore wrote: »

A single person is entitled to the €32,800 at 20% and the tax credits whether your income is 25k or 50k.

Thank you! Would tax credits stay the same too?

barneystinson · 19-02-2011 8:54pm

TripleAce wrote: »

Thank you! Would tax credits stay the same too?

Yes

allthedoyles · 19-02-2011 9:56pm

If you are working part-time , just bear in mind what you are doing for the rest of the time .

Because if you claim benefits , they may be taxable .

Benefits could affect your tax credits .

barneystinson · 20-02-2011 3:00pm

allthedoyles wrote: »

If you are working part-time , just bear in mind what you are doing for the rest of the time .

Because if you claim benefits , they may be taxable .

Benefits could affect your tax credits .

All true, but the OP said they want to switch to part-time hours in the same job - so he/she shouldn't be entitled to any benefits...

Question on part time vs full time taxation

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