Tax Credit mistake or did someone seriously **** up?

arleitiss

Hey, I tried reading online about taxation, but didn't understand quite,
basically I work in my college, I worked in my college from september until december 2012 and I am not sure if I will continue to work this year too.

I wasn't registered for P45 and I am still not because my college didn't sent me P60 (I think) yet.
I was charged like 50% of tax for this half year while working, my earning was only like 120 euro a month but I ended up getting only 60 euro as 50% was going to tax.

Now today I got a letter from tax office, and it's values really messed me and confused me.

It says:

For the year 1 January 2013 to 31 December 2013 and following years.

Tax Credits
Personal Tax Credit: 1,650.00
PAYE Tax Credit: 1,650.00
Gross Tax Credits: 3,300.00
Net Tax Credits: 3,300.00


Tax Rate Bands
Rate Band 1:
The amount of your income taxable at 20%: 32,800.00
All income over 32,800.00 is taxable at 41%: 32,800.00

Then there is USC Rate Bands with some 10,000 values and 5,000 values.

Then:

Allocation of your Tax Credits and Rate Bands (subj to Rounding)
Employer: Yearly| , Montly | Weekly | Rate Band
Emp.... 3,000.00 | 275.00 | 63.47 | 20%


Allocation of your USC Rate Bands (subj to rounding)
Employer: Yearly| Monthly | Weekly|
Income chargeable at 2% 10,036.00| 836.34| 193.00
Income chargeable at 4% 5,980.00| 498.34| 115.00


So like what the hell?
I wish I was earning the values specified, but I am not.
I work only 3 hours a week at 9.70 eur/ph

Did tax office mess something up?
Should I go and ask them what's going on?
So much terms I have no idea what's it about.

Citizenpain

First of all - The letter from Revenue

This is simply telling your employer how to tax you -- It would be the same whether you are earning 9.70 per hour or 970.00 / hour

Does the letter say that your your Tax Credits and Rate Bands are allocated to your employer? If not get their Tax number from them and ring revenue and ask them to assign them to that number.

Check yourself that you are claiming all the credits that you can -- look at revenue .ie or register for payeonline

For last years pay --- If you are still employed by the college you will not get a P45; just a P60 soon enough

When you get it, drop into revenue / or call them asking for a p21 Balancing Statement
They will issue any refund due to you pretty quickly

Kristopherus

Did you apply for a Certificate of Allowances when you started working?

arleitiss

Kristopherus wrote: »

Did you apply for a Certificate of Allowances when you started working?

No, I didn't apply for anything really.

Citizenpain

Dont worry -- You'll get back anything that is due back to you -- as long as you do it within 4 years .......

relax carry on

Just as a general guide to taxation, you may find the below helpful. If you did maths at any level in secondary school then you can understand basic taxation. It just takes a little bit of time. Reading and understanding your payslips should really be taught in schools.

http://www.revenue.ie/en/tax/it/leaflets/it11.html