trying to work out taxes I will have to pay!

moretothegirl

Hi everyone,

I've just sent my pay and file income tax form off and since its in before august, they should work out the amount of tax I have to pay for me thankfully!

However I'm trying to get my head around how much I think it might be so I can be prepared and was hoping someone might be able to give me a rough idea here.

Basically I earned €10915 through self employment for 2011. No other earnings and no expenses either. I'm 24, single etc. so not many tax credits either!

I'm trying to look up what taxes etc. will apply to me but I'm finding it pretty hard to navigate through all the info available to be honest!


This is what I figure I will have to pay but I'd love if someone could tell me whether I am missing something major here!

USC: €235.88
PRSI at S class: €436.60
Total: €672.48

But then I think I should have a single person's tax credit of €1650
So am I right in saying that all I pay is the USC. Does my tax credit just cancel out the PRSI, Or does this tax credit apply to me at all since I'm self employed? And if it does apply have I used it correctly?

Also have I missed out on any other taxes I would be liable to pay??

Many thanks to anyone who can help!

srsly78

Download the spreadsheet from here: taxcalc.eu

Put your figures in and see what it says.

moretothegirl

Thanks for that! I'm actually using my phone at the moment though and it wont work on this for some reason so I'll have to check that out later on my computer!

namenotavailablE

Your USC and PRSI values tally with mine but I think you've forgotten the PAYE :-(

You'll pay 20% PAYE on the €10915 [=€2183] and then this is reduced by the €1650 single person't credit, leaving a PAYE liability of €533 in addition to the other levies already calculated.

moretothegirl

Thanks for that, I didnt realise I had to pay PAYE too!

Just looking into that now and I can't really seem to find any info about this. I thought PAYE was the tax that employees pay, rather than self employed. Do you happen to have a link for this by any chance?

Thanks a million :-)

relax carry on

moretothegirl wrote: »

Thanks for that, I didnt realise I had to pay PAYE too!

Just looking into that now and I can't really seem to find any info about this. I thought PAYE was the tax that employees pay, rather than self employed. Do you happen to have a link for this by any chance?

Thanks a million :-)

You are not paying paye. Paye is not a tax, its a system of collecting income tax. PAYE employees pay Income tax under the PAYE system and self employed pay income tax through filing returns. It's all income tax at the end of the day.

The main difference between self employed and paye for tax purposes is the self employed person uses expenses incurred in their business to reduce their tax bill but can't use the paye credit. The paye person can't claim their expenses for their employment (in the main) but can claim the paye credit. There is also differences in PRSI rates to consider.

http://www.revenue.ie/en/tax/it/leaflets/it10.html