Week 1 Tax

sitstill

I am starting a new job at the beginning of September and have been told by Revenue that I will be on 'Week 1 Tax basis" because I did not get a P45 from a job that I only had for a week earlier this year.

I looked online but I don't understand this Week 1 thing. Can anyone tell me in simple terms - does it mean that I will pay more tax?

Steviemoyne

Note that my explanation is only how I understand it, and I've tried to go into as little detail as possible. If it helps you then all well and good, but I probably am not as well read up as others here.

You get charged a default rate every week as if it was your first until the tax office get the proper information about your new business or/and your situation. If you were to stay on this rate you would be paying a lot more than what you would be paying if you were on the proper rate.

Example: You pay tax for week 1, in week 2 normally it would take into account what tax you already paid so far and you would pay a little less that week and so on rinse and repeat. But with a "Week 1 basis" every week is "Week 1" so you don't get a reduction in tax at all.

More detailed information here: http://www.revenue.ie/en/tax/it/week-1-basis.html

This link might also interest you: http://www.revenue.ie/en/tax/it/leaflets/it11.html

ibarelycare

If there's been a gap in your employment between your last job and your next one, then you would probably be entitled to some tax back on your first pay cheque, or at least be paying no tax/lower than usual. This is because your tax credits accumulate from 1st January for the whole year. However as the previous poster said, if you're on a Week 1/Month 1 basis, only your tax credits from that period are used, and you won't be entitled to the accumulation of credits. This can be changed if your P45 is filed with Revenue. Can you ask your previous employer for a copy? They should have filed this with Revenue, but obviously they haven't. If they are refusing to give you a copy, then there is a section of Revenue that you can speak to about this, but I'm not sure what the number is, your best bet would be to phone the section you spoke to last time and ask them. Unless Revenue has details of your previous income for the year, they will not place you on a cumulative basis.

Paddy001

sitstill wrote: »

I am starting a new job at the beginning of September and have been told by Revenue that I will be on 'Week 1 Tax basis" because I did not get a P45 from a job that I only had for a week earlier this year.

I looked online but I don't understand this Week 1 thing. Can anyone tell me in simple terms - does it mean that I will pay more tax?

A week one basis basically means you will only get credits and cut-off for that period only, so one months credit for one months pay. If you were on cumulative, you would be entitled to use all your annual credits and cut off for the remaining months. There is nothing you can do about this unless you can obtain a P45 from your previous employer. If you wait until February 2014, you should be able to order a balancing statement and receive a refund as your details from the previous job should be returned when they submit their P35.

padma

I'm going to hijack this thread with my situation. I was last self employed in August 2011 and haven't worked since until I started a new job in April, I've been on this tax basis W since. How long generally do I stay on this basis? does anyone know? I've popped down to the tax office here in my local city and currently they send all requests "upstairs" as they don't have computers at the front desk anymore. They have sent me out my tax credits form 2 and a half months ago, but still nothing from them.

ibarelycare

padma wrote: »

I'm going to hijack this thread with my situation. I was last self employed in August 2011 and haven't worked since until I started a new job in April, I've been on this tax basis W since. How long generally do I stay on this basis? does anyone know? I've popped down to the tax office here in my local city and currently they send all requests "upstairs" as they don't have computers at the front desk anymore. They have sent me out my tax credits form 2 and a half months ago, but still nothing from them.

Your best bet is to ring them.

padma

Best advice I've had all along, all sorted, the hold up was not knowing whether I was on JA or JB. So face to face hadn't worked with me in the tax office, but Phone call had.