Summer job - working out tax

jc2008

I have a job for the summer, which started two weeks ago - it is paid monthly and I'm expecting the first payment soon. I'm trying to work out how much I will pay on tax - I'm only 19 and this was my first 'taxed' job so I filled out the Form 12a and gave it to my employer (who I presume sends it to the revenue).

When working out my tax, do I work out what my effective salary would be in annual terms (i.e. ignoring the fact the job is for 16 weeks only), and find tax on that?

For example, if I earn 9 euro per hour, and work 35 hours a week, my total income for the year (I won't have any other employment apart from this in all of 2012) is 40*16*9 = 360*16 = €5760.

Note that if I calculate PAYE on this (at 20%) I get €1152, which is less than my tax credit of €3300 and thus I shouldn't pay any PAYE - on a similar vein, as my total income for the year is less than €10036, I am exempt from USC (I think however, I am liable for PRSI). This can't be right though?

If I work with my effective 'annual' salary, it would be 40*9*52 = €18720.
@20% = 3744
Minus tax credit of 3300 = 444
PRSI = (360-127)*4%*52 = 484.64
USC = (10036*2% + 5980*4% + (18720-10036-5980)*7%) = 629.20

Giving total tax for the year of 1557.84.
Weekly tax €25.96

Is this correct? I'm not convinced I should be paying some of those taxes, as my total income for the year will not go over a certain threshold - but the revenue obviously don't know this when I am working now, so is it the case that I will be charged tax as I have calculated above, and at the end of 2012 I will be eligible to claim some of it back?

Thanks

Citizenpain

google "tax calculator ireland"

against the charter to give personal advise

but it doesnt matter whether you are working 16 weeks or 52 - there is no need to annualise your income

jc2008

OK fair enough, thank you.

The Deloitte tax calculator agrees with my calculations above, but that's annualising my 'wages'.

So what you are saying is that, hypothetically, if someone was working only for a certain number of weeks, they should use their total income for 2012 as the figure to work with, not the income they would earn if working 52 weeks? So if in this hypothetical case a person's total income for the year was such that they were exempt from certain charges (e.g. USC) they could claim it back?

Thanks

Citizenpain

jc2008 wrote: »

OK fair enough, thank you.

The Deloitte tax calculator agrees with my calculations above, but that's annualising my 'wages'.

So what you are saying is that, hypothetically, if someone was working only for a certain number of weeks, they should use their total income for 2012 as the figure to work with, not the income they would earn if working 52 weeks? So if in this hypothetical case a person's total income for the year was such that they were exempt from certain charges (e.g. USC) they could claim it back?

Thanks

Correct