New job, Am i being taxed to much??

col134

Hi there, i have recently secured full time work. I havnt worked in some years as i have been in education and unemployed so my P45 is exempt. I got onto the revenue office and they sent me out a tax credit cert. i will be earnin 390e before tax and according to my tax credit cert i will be taxed 63.50 weekly. Would anybody be able to shed some light on if this is to high or is the right amount for my income ?????

another question

Need a few more details...are you single/married? And are you working as an employed PAYE worker? And have you currently got a full medical card?

col134

Hi, Im single, i have a daughter, and have a full medical card. Im a barber

another question

col134 wrote: »

Hi, Im single, i have a daughter, and have a full medical card. Im a barber

Ok so because you are a full medical card holder your Universal Social Charge is capped at 4%. For most people if their earnings exceed a certain amount the excess is charged at 7% but this won't apply to you.

However, you still need to be clearer, you say you have a daughter, does she live with you full-time? This is important as you would then be entitled to an increased lower rate tax band @ 20% and an increased one - parent family tax credit.

Also, I still need clarification that you are working as an employee and not under any contractor/self - employed basis...to avail of the PAYE credit.

Bobby1984

Without seeing the tax credit cert, I would assume that the €63.50 is not what you will be tax but instead it is your weekly tax credit. Therefore the annual tax credits which you have total €3,300 (€63.50 x 52). This means you probably only have the basic tax credits of a single person and a PAYE worker.

The max rate at which you will pay USC is 4% due to holding a medical card.

I would estimate that if you get €390 per week, you will pay €14.53 PAYE, €10.52 PRSI and €11.74 USC giving you a net wage of €353.21. Your net wage should be higher if you are only starting your job now as you will have unused tax credits from earlier this year.

This is also dependant on you having no other taxable income.

col134

My daughter dosent live with me full time. I have just taken up emloymet with a company, i am not self employed or not a contractor.

Bobby1984

Cross post but either way the increased 20% rate wont affect the OP if the weekly pay is only €390.

I'm presuming that they are employee based on the tax credits she is receiving.

col134

Bobby you have cleared this up for me, I am no good at this stuff. thanks to both of you.

another question

Ok got ya now. Other poster is correct too. You are getting €1650 single credit and €1650 PAYE credit totaling €3300/52 weeks is €63.50, this is the amount they deduct from your TAX DUE to get your TAX PAYABLE.

Your earn €390 per week x 52 weeks = €20,280 * standard tax rate of 20% = €4056/52 weeks = €78 Income Tax per week (less tax credits of €63.50) = €14.50

Next PRSI = The first €127 is exempt, leaving €390-€127=€263*4% = €10.52

Next is USC = Again this is annualised like income tax because there are different rates so the first €10,036 is at 2% = €200.72, the remainder of your ANNUAL income is at 4% so €20,280-€10,036= €10,244*4%=€409.76

Add €200.72 + €409.76 = €610.48/52 weeks = €11.74

So, your NET/TAKE HOME PAY = €390 less (Income tax €14.50 + PRSI €10.52 + USC €11.74) = €353.24

Total TAX PAYABLE BY YOU PER WEEK = €36.76

namenotavailablE

It's probably worth pointing out that if this is your first time working this year that you'll only effectively pay the PRSI of €10.52 on your weekly earnings up to December. No income tax or USC will apply due to accumulated tax credits and bands.

Next year (if the exact same tax rates and credits etc apply) you'll pay €36.76 per week in tax and levies. Check out my tax calculation spreadsheet from the link in my signature or the 'About me' section of my profile