Help re paye

murraymar

Hi, my apologies if I'm posting on the incorrect forum but I need some advice.

I'm currently working two low paid jobs. One is for 30 hours a week where I make €25k a year and the other is a call centre where I work 20 hours a week for €10,000 a year. Since I started the two jobs at the same time (back in November) my deductions on pay have always been incorrect. I'm single and this month I paid €900 in paye/USC. When I got on to the tax office they said my credits have gone to the €25k a year job. Ideally I'd like to keep the two jobs but I feel like I'm currently working for free for call centre. Any idea how to get the most from the two jobs without being crippled by tax?

Scortho

murraymar wrote: »

Hi, my apologies if I'm posting on the incorrect forum but I need some advice.

I'm currently working two low paid jobs. One is for 30 hours a week where I make €25k a year and the other is a call centre where I work 20 hours a week for €10,000 a year. Since I started the two jobs at the same time (back in November) my deductions on pay have always been incorrect. I'm single and this month I paid €900 in paye/USC. When I got on to the tax office they said my credits have gone to the €25k a year job. Ideally I'd like to keep the two jobs but I feel like I'm currently working for free for call centre. Any idea how to get the most from the two jobs without being crippled by tax?

you should be able to split your tax credits between the 2

murraymar

Thanks for the reply. What is best way to split them to get maximum cash

Scortho

Well at the moment your tax is at the higher rate on the second job. so of your 10000 on the second job 4200 of this is going in tax. However your standard cut off rate is 32,800 so you should only pay tax at the higher rate on the remaining 2200.

Im not exactly sure your best way to split them, or if revenue split them equally between both jobs, as I've never been in the position of having 2 jobs at the one time. If revenue split them equally, it will mean that more of your income will be taxable at the higher rate on the first job than the second as you have a lower tax credit here, but

Your weekly tax credit is 63.45 and standard cut off rate is 630.77.
At the moment your weekly wage from job a is 480.77 a week and from job b is 192.3 a week.
Total wage is 673.07.
Currently youre total tax credit of 63.45 and standard cut off point is going towards job a.
your weekly tax liability on job a is 96.15 so you currently pay 32.7 euro in tax on job A(excluding usc and prsi)
your weekly tax liability on job B is 78.84, of which you pay 78,84 as it is at 41% and you have no credit here.
However you should only be paying tax at the higher rate on the last 42.3 euro of your 192.3 a week (150 at 20% and 42.3 at 41%) meaning that your tax liability would be 47.34 on the second job (excluding usc and prsi).

At the end of the year you could also get a balancing statement from revenue, where if they owe you money, they will refund you.

Head The Wall

You are not in a low paid job, you are getting nearly twice the minimum wage rate for your first job and getting nearly 20% above it for the second job.

You are in breach of the WTD though.

Scortho

Head The Wall wrote: »

You are not in a low paid job, you are getting nearly twice the minimum wage rate for your first job and getting nearly 20% above it for the second job.

You are in breach of the WTD though.

Can you not be in breach of it if its your own choice? Last summer I did 148 hours over a 2 week period. Well over the WTD however it was my own choice as I ended up coming out with the guts of 2k for it. Not bad for a student.
Also would his not be a different case as he's working for 2 different company anyway?

2ndcoming

Unless you have unusually high tax credits (i.e over 5000 pa) there's no benefit to splitting your tax credits or USC rate bands as they will all be fully used by the 25k job.

If you are single with ordinary credits/ bands you should be able to transfer 7,800 of your cut off point to the 10k job.

See the Taxation forum under the Biz dropdown for any other questions like this.

nesf

Moved from Irish Economy.