How much will I be taxed??

Galwaymother

Hello all good business-head people!
I have just been offered a position, where I would be get 1250€ gross per month.
At the moment I earn about 600€ per month (for ten months) after tax for just a few hours. I am taxed very little. I do not claim for any benefits or allowance (except Child Benefit).
My husband earns about 4500€ per month gross, and gets 3350 post tax.
We have two children, and I would work 30 hours a week (I don't know if it's relevant). There would be no Child care changes...
His Monthly tax credit is about 400€. Mine is 440€.
Can you help me to see if my wages make the position worthwhile once the deductions come in? I am going to ring the Tax Office, but I feel I should have a little idea before hand.
Thanks a mil!

MagicRon

See here

ResearchWill

Soon good calculators here

http://www.hookhead.com/Tools/tax2012.jsp

And here

http://www.deloitte.ie/tc/

From the hookhead.com you would assuming you have kept your allowance only pay €399.28 USC for the year

Galwaymother

Thanks! A little too complicated for me, seeing that I'm sharing (giving) all my credits to my husband. We're assessed together.

Galwaymother

Are the Deloitte figures to be posted per month or year?

Galwaymother

And are they asking Gross or Net for the spouse income? It's not very clear....

Citizenpain

Gross Annual Income

If you tell us what your credits and band are per the statement of credits and cutoff point issued be revenue its straigtforward to work out

Galwaymother

Ok so

Me: Tax Credit 438
Cut off 6240
PRSI Class A0
Band: ?

Spouse: Tax Credit 396
Cut-off 3468
PRSI Class A1
Band: ?

And I thought I was giving him my credits!
THANKS A LOT!!!

Citizenpain

Tax credis seem v high -- might be worth checking that they are correct
yours work out at (438+396) X12 approx 10K
the basic credits are personal & PAYE (1650 X 4) = 6600 -




but given that you as a coupel come into the higher tax bracket you would be paying approx 50 % of the salary increase in tax & USC

Galwaymother

Right, I rang the tax office, and I still don't get it.
She told me that I would be taxed about 50€ a month, excluding USC...
That doesn't seem to be right!
She told me how to calculate it, but I am seriously inept at maths, so can't do it:
If I earn 1000€ per month, I have to multiply that by 20% then take off my Credits of 146€ per month... (which doesn't tally with the credits on my Payslip!), then I get....what again?
I feel so useless!

Oh sorry the Tax Credits I gave for me earlier were cumulative...so 146€ is actually right...

Citizenpain

Galwaymother wrote: »

Ok so

Me: Tax Credit 438
Cut off 6240
PRSI Class A0
Band: ?

Spouse: Tax Credit 396
Cut-off 3468
PRSI Class A1
Band: ?

And I thought I was giving him my credits!
THANKS A LOT!!!

Are these numbers from Payslips or from the statement revenue would have sent you?

just saw your edit on your previous post

What is yours and your husbands monthly credit & cutoff?

Galwaymother

Yes, from Payslips! Is that not right?
Spouse Monthly Cut-off: 3468
Mine : 2080
Spouse Monthly Credit: 396
Mine: 146

Citizenpain

Do you have a copy of the statement revenue would have issued ? very difficult to extrapulate it from payslips

Based on what you have taken from the payslips your monthly pay would be
Gross 1250
Tax at 20% 250
Tax Credit -146
104
Net before USC 1146


My earlier figure was out because you were not fully utilising your paye tax credit

namenotavailablE

There's an Excel tax calculator linked in my signature below which you'll see when logged in (it's also accessible from my profile) that might help you with this. It should be OK to use but feel free to send me a PM if you need a hand with it.

A general point for everyone- strictly, the moderator doesn't allow such calculators to be linked within the body of a message as he neither tests nor trusts them. They can only be linked by way of a signature link.

Galwaymother

I found a recent Tax Credit certificate...

Me:
No personal Tax Credit
PAYE Tax Credit: 1650
Flat Rate Expenses: 103
Monthly Tax Credits: 146
Monthly Tax Rate Band (at 20%?): 2080

Spouse:
Personal Tax Credit: 3300
PAYE Tax Credit: 1650
Flat Rate Expenses: 93
Monthly Tax Credits: 396
Monthly Tax Rate Band: 3468

Then there is a weird thing about PAYE Underpayment (285€ for my spouse)
Rate Band 1, 65600
increased by Flat Rate Expenses of 984
Taxable income at 20%: 66584
Above taxable at 41%

Does that make sense to you?
It reads like Chinese to me...I should have done Business in school!

Citizenpain

Thats fine -- the figures I gave above are good so

Are you paying USC at the moment ? If your Gross income is less then 10,036 in 2012 you are exempt and can claim it back -- going to 1250 a month for the rest of the year might bring you into the net though

The USC is calculated at
2% on the first 10036 and 4% there after

assuming you earned 650 a month Jan to June and 1250 July to December this would mean usc of 228 (11400 X 2%) but if you are less then 10036 you can get it back

Galwaymother

Ooh nice!
I would be exempt then since I haven't been/ won't be working in June/ July/ August, have not earned 650€ every month at all, and am only starting the new wages in September hopefully!
And I have been paying it...and I will be paying it in September, that was mentioned by my Employer.
So I suppose I'll claim for the USC back at the end of the year?

Galwaymother

Thanks a lot Citizenpain and others for your great and fast help!
I'd say it's worth it for me to take the position then, even if the work hours are multiplied by 6 and the wages not really doubled!
I wouldn't be happy coming out with only 1000€ though for 15 hours teaching and 15 hrs admin!
We shall see....

Shane732

Just to note that not all tax calculators are accurate, use them at your own peril.