Tax on my work bonus... too much?

Bhoywunder

Hi,

When i have been paid my yearly bonus from work am I entitled to claim any tax back at the end of the year? My bonus is around 6,000 euro and the tax i pay that month on the bonus and my wages combined is far higher than normal.

Combined I earned just under 9,000 that moth and walked away with probably 60% or less after all the taxation, USC that month was very high.... normal??

I understand that that month the tax will come off as it is believed that is what i would earn each month, but over the course of the year when it becomes evident that one month was a one off and not a normal month where i receive only my wages, is there any grounds for me to claim back some of the tax paid?

Really at a loss, I'm not too good with the old tax rebates.

Cheers for any help.

nompere

PAYE works on the cumulative basis. It will sort itself out over the year. There's unlikely to be any refund unless you stop working for any reason.

USC works on a week 1 basis, and you will have paid 7% on your bonus. You will be entitled to get the excess back, but not until the end of the year. Revenue suggest in their FAQs that this will come from your employer in the last month of the year.

http://www.revenue.ie/en/tax/usc/index.html

2.22 What if I have overpaid the Universal Social Charge? How can I claim a refund?
The Universal Social Charge is calculated on a pay period by pay period basis. Where the Universal Social Charge has been applied for particular pay period(s) throughout the year but you are ultimately liable at either a lower rate or are exempt because you have not exceeded the thresholds at the end of the year, you will have overpaid the Universal Social Charge. In this situation you will be due a refund of some or all of any Universal Social Charge paid.
Where you have been in continuous employment with an employer/pension provider throughout the year in question (i.e., from 1 January to 31 December), your employer/pension provider may refund any overpayment of Universal Social Charge deducted at the end of the year. Where you have not been in continuous employment with an employer/pension provider throughout the year in question, Revenue, rather than the employer/pension provider, will deal with any refund of Universal Social Charge due at the end of the year

Otherwise you can make a claim to Revenue in January 2012:

2.24 I have overpaid the Universal Social Charge in 2011. How can I claim a refund?
If you have overpaid the Universal Social Charge you can apply to Revenue for a refund at the end of the year in one of two ways. You can either:
•
Complete a Universal Social Charge Refund Claim Form and send it to your local Revenue office. The form will be available to download from www.revenue.ie or from
Revenue’s Forms & Leaflets Service Telephone (24-Hour service) 1890 30 67 06
If calling from outside the Republic of Ireland please phone + 353 1 70 23 050
Email: custform@revenue.ie
Or
•
Submit your claim online using the online facility on the Universal Social Charge page on www.revenue.ie.

allthedoyles

Assuming the year is 2011 and you are single and you have now received the bonus , you will have been taxed correctly , as your annual salary is €36,000 and your standard rate cut-off is €32,800 @ 20%.

However , if the year in question is 2010 , and your salary is €36,000 and you received bonus in a month other than December , then your cumulative tax credits will come into play , and they would have levelled out before year end .( means you may have paid too much tax in month of bonus , but you would have received a refund through payroll the following month )

However , if the bonus was received in December 2010 , you may have paid too much at the high rate , ( depending on your cut-off point )

Either way , you need to request a P21 from tax office and claim all your tax credits and allowances that you are entitled to.