Commission Tax

kitty171184

Wondering if anyone can help me. I have a friend who gets paid a low weekly wage but once a month gets paid comission and pays alot of tax that week.
He has a weekly cut off point that he doesn't go near all the other weeks. Should this not come into effect or is there another way he could get paid so that he's not taxed like this.

Alan Shore

Income tax should work on a cumulative basis, so that in a week of higher income its the cumulative figure that counts.

Your friend will need to check that their employer has been issued with a cumulative cert of tax credit and standard rate cut off. In some cases the Revenue issue a week 1 cert which means that each week is treated seperately. It can happen where someone changes jobs are has more then 1 job and Revenue are trying to ensure that the taxpayer pays the correct amount of tax.

Your friend should have received a copy of cert of tax credit and standard rate cut off so can check it themselves.

kitty171184

Back in relation to this. If someone is getting basic pay of 300 per week and then once a month get commission. Would they not work out paying less tax if they got their commission weekly. The standard cut of point is 630 per week, so if they were to get 1000 at the end of the month, they will pay more tax than if they were to get the 250 per week? I'm not sure and looking for advice on this.

Citizenpain

As long as they have a cumulative cert of tax ( which most do) it doesnt matter one way or the other