tax credit cert and paye underpayment question

newme2006

hi all,

my partner has recently started a new job after being out of the job market for almost two years :eek: he was a qualified block layer previously and after doing a few fas courses last year that werent of any real benefit hes finally secured employment.

anyway, this will be his 4th week, and today his tax credit certificate came in. when he started work i advised him to ring social welfare office to ask if there was anything they could give him as obviously he has no p45 but he rang new employer instead and told them situation and they said they would arrange it all. in the meantime he received no pay slips, yet appears to have been placed on emerg tax as is normal.

anyway today the tax credit cert lands on the mat and says that the cert has been issued on a week 1, month 1 basis from 18th august (? he actually started 3rd august) til the end of the year.

why is this? and should he just go to tax office to see what can be done?

and my second query relates to his tax credits on the cert, it has detailed a Paye underpayment of €288 on it which his tax credits have been reduced by.

I remember a few years ago he claimed tax back for the previous years and got a sum back, then the next year he applied again and they told him that there was a mistake made the first time and that he would have to pay this back over time at a rate of €10 per week, am i right in assuming that this is this overpayment from back then? i assumed that this would be taken from his dole up to now, of course its better that it hadnt.

advice much appreciated.. thank you.

Mrs OBumble

He needs to ring Revenue himself, and tell that that he wasn't working earlier in the year, but was on Welfare.

They (Revenue) put people on week-1 if they don't know what's been happening earlier in the year. Explain it to them, and most probably he'll be allowed to use up his tax credits from earlier in the year too.


(Be aware that his tax may appear to rise next January though, when he won't be using up "spare credits" any more.)

angelfire9

From Revenue.ie:

the employee's previous pay and tax details are included on the tax credit certificate to assist the employer in calculating the correct PAYE due. The pay and tax figures are the most up-to-date figures available to Revenue. If the pay and tax figures are not available, the tax credit certificate will be on a week1/month1 basis.

Jobseekers Benefit (formerly known as Unemployment Benefit) is a taxable source of income. However the child dependant element and the first €13 per week of benefit are exempt from tax.

Jobseekers Allowance is not a taxable source of income.
When you resume employment advise your local Revenue Office of the name and address of your new employer. Revenue will then notify your new employer of your earnings and net tax deducted up to the date you resume employment. Your tax credits and standard rate cut-off point will be reduced by the amount of your taxable Jobseekers Benefit. Both yourself and your employer will be notified of your reduced tax credits and standard rate cut-off point.

Where the tax due on your Jobseekers Benefit is less than your tax credits, a cumulative certificate of tax credits will be issued.

Where the tax due on your Jobseekers Benefit is greater than your tax credits, a non-cumulative basis certificate of tax credits will be issued.

Presuming your partner was on JSA not JSB then you shouldn't have a problem getting the tax credit cert re-issued on a "Normal" Basis rather than week1/month1