Please help me with emergency tax! I haven't a clue!!

noeld932

Hey guys!
Well, I started my new job on Monday.
I get paid monthly but I get a weeks wages this Friday as it's the end of the month.
I got my payslip today and it says that I'm on emergency tax. I got taxed €40.20!!! :eek: My employer had me fill out a form last week in relation to tax credits etc.
But I'm just wondering, what's the craic with tax credits?
Is emergency tax a lot more than normal tax? Will I get the money back?
This is my first job and I don't have a clue about tax. I have went on www.revenue.ie but I need it explained in layman's terms.

So my questions are:

Is emergency tax higher than normal tax?
Will I get any money back?

40 quid out of one weeks wages is a lot for me, especially since I'm 19 and it's my first job. If someone could explain this and help me out I'd greatly appreciate it!!

Thanks folks!

Princess Consuela Bananahammock

noeld932 wrote: »

Is emergency tax higher than normal tax?
Will I get any money back?

!

Yes and yes. It's just because they don;t have any taxrecords for you yet. May take a month or two.

Agent_99

Phone the revenue PAYE section with your PRSI number, staff number if you have one it should appear on your payslip and your employers Number ask your boss what it is. Tell them you have started a new job they will ask for all of the above and send you and your employer a tax cert this should speed things up in time for next months wages. Any over payment will be refunded in your next wage. And in January request a P21 balancing statement to make sure that you are up to date.

Thoie

Everything you need to know about everything (and then a little bit extra )

http://www.citizensinformation.ie/en/employment/starting_work_and_changing_job/starting_work/tax_and_starting_work.html

relax carry on

Phoning Revenue will not work when its a case of your very first employment ever as no tax record exists for you. You have most likely completed a form 12a to get yourself and your employment registered. This is the only time you ever need to fill in a form 12a.

Depending on how busy your local PAYE area is, you could be waiting for a number of weeks to be registered. Once registered a tax credit cert issues to your employer which allows them to tax you correctly. A paper copy of this cert will issue to you also for your records.

If you have been overtaxed, your employer will then refund you any overpayment in your wages.

http://www.revenue.ie/en/personal/faqs/starting-work-tax.html

tbh

In simple terms, revenue calculate your tax based on your wages and give you some allowances. You don't pay tax on everything you earn , just the taxable bit. As you've just started work, and congratulations on that young man, btw, revenue don't know what allowances you should get. Emergency tax means that they tax you without giving you any allowances until they get a chance to figure out what you should be paying. Once they do that, they take what you should have paid and take it away from what you have paid, and automatically refund you the difference.

TimeToShine

If I am starting my first job where I am paid officially am I subject to tax credits? I have worked before and my employers are aware of it but I have always been paid in cash/cheque and not through bank accounts. Will my prospective employer expect me to have filled out all of these forms already or should I notify them in advance?

Princess Consuela Bananahammock

TimeToShine wrote: »

If I am starting my first job where I am paid officially am I subject to tax credits? I have worked before and my employers are aware of it but I have always been paid in cash/cheque and not through bank accounts. Will my prospective employer expect me to have filled out all of these forms already or should I notify them in advance?

As long as your previous employment was official, you should have received a P45 form upon leaving. If not, you may be subject to emergecy tax. Did you get wage slips or a PPS number?

TheUsual

I have to say Revenue are brilliant to deal with. Best Government agency by a long shot.

If you are short of cash, for the next 8 weeks just go to the Bank/Credit Union with your proof of employment (payslip or letter will do).
Bank of Ireland wouldn't help me, but AIB did give me a loan to live on and buy work clothes.

TimeToShine

Princess Consuela Bananahammock wrote: »

As long as your previous employment was official, you should have received a P45 form upon leaving. If not, you may be subject to emergecy tax. Did you get wage slips or a PPS number?

No that's the problem. In the interviews and my CV I'm fairly sure it comes across as if they have been official but they haven't. I worked a few summers in retail and just got paid cash weekly "off the books" so to speak. How much does emergency tax charge?

Princess Consuela Bananahammock

TimeToShine wrote: »

No that's the problem. In the interviews and my CV I'm fairly sure it comes across as if they have been official but they haven't. I worked a few summers in retail and just got paid cash weekly "off the books" so to speak. How much does emergency tax charge?

Then they wont have records and, as far as the revneu is concnerned, this is your first employment. You may still have a PPS number - have you ever signed on?

I think emergenxy tax is about 40%.

TimeToShine

Princess Consuela Bananahammock wrote: »

Then they wont have records and, as far as the revneu is concnerned, this is your first employment. You may still have a PPS number - have you ever signed on?

I think emergenxy tax is about 40%.

I do have a PPS no. but I have never signed on...I was told I'd be paid a certain amount each month directly into my bank account, I presume i'll lose 40% of it if I am subject to emergency tax. Is there any way of getting around it? The wage isn't great as it is and 40% is a huge hit to take in my opinion.

Mrs OBumble

TimeToShine wrote: »

I do have a PPS no. but I have never signed on...I was told I'd be paid a certain amount each month directly into my bank account, I presume i'll lose 40% of it if I am subject to emergency tax. Is there any way of getting around it? The wage isn't great as it is and 40% is a huge hit to take in my opinion.

The advice earlier in the thread is good.

Have you filled in a Form 12a? You NEED to do this for your first job.

And since we're on boards.ie, our advice needs to be that you should tell the truth about your cash jobs earlier in the year while you're filling it in. But if the earlier jobs really were cash jobs with no record, or cheques that you didn't deposit into your bank account, I don't think there is any way that Revenue will know if you don't tell the truth. If you get my drift.

Emergency tax is on a sliding scale for the first 9 weeks: starts at 20%, rises to I think 42% by week nine. It's 20% for the first 3-ish weeks, I think, to give time You get it back once you've filled in the Form 12a and once Revenue have processed it and issued your tax-credits cert.