Emergency Tax

Backstreet Moyes

Can anybody advise on what happened with my payslip this week. I have been working their 4 weeks. It's part time so on x and o's so it's minimum wage for 20 hours so €173. The first week i paid PAYE of 55 so went down to the tax office and filed for tax credits.

I didn't get the money back yet but for the next two weeks it was sorted out. This morning i checked my bank and no money went in. I looked at my payslip it said paid €173, paid PAYE of 950 and USC of 180 and total payment is -957. I just have no idea what this means or what to do.

Dinisdos

Hi I work for Thesaurus , it looks like a P2C file has gone to your new employer with previous earnings for this year or that they have left out the tax credit/cut off point or usc bands off the cert. In effect it looks like you owe tax and usc as the cert has been issued on a cumulative basis . The best thing you can do is to contact your payroll department and try to get a payslip and you should be able to see if extra earnings year to date have been added or if your tax credits and USC bands are at 0 and then you would need to contact the tax office on 1890333425 (employees helpline) and they should be able to send a correct cert to your new employer.

Backstreet Moyes

Dinisdos wrote: »

Hi I work for Thesaurus , it looks like a P2C file has gone to your new employer with previous earnings for this year or that they have left out the tax credit/cut off point or usc bands off the cert. In effect it looks like you owe tax and usc as the cert has been issued on a cumulative basis . The best thing you can do is to contact your payroll department and try to get a payslip and you should be able to see if extra earnings year to date have been added or if your tax credits and USC bands are at 0 and then you would need to contact the tax office on 1890333425 (employees helpline) and they should be able to send a correct cert to your new employer.

For this year i worked 9 weeks for a TUS job. Where i got 188 dole plus 20 top up which is not taxable. Then i went back on to the dole until i got this part time job last month. I don't owe tax for this year the tax office can't understand how they are getting 1100 owed tax. They said their must be a mistake and they sent out my tax credits slip to the new employer last week. I just have no idea unless the new employer has made some mix up but even if they thought i owed tax on 208 for 9 weeks i don't know how they are arriving at 1100 owed tax.

Dinisdos

Hi , the only way I could come up with any kind of figure like that is if the tax office are taking your 9 weeks at €208 = €1872 plus roughly
3 weeks pay (3 X 173 = 519) so total pay would be 2393 and if they have issued a cert with no cut off points and no tax credits that would all be taxable at 41% which equals 981 roughly. Just say that this is the figures they are using they have not allocated you any tax credits or cut off points which would normally be around 630 cut off point per week and 63 tax credit per week . This is week 40 in the tax year so if you had 40 weeks X 630 = 25200 so all the earnings would be at 20% . So the full 2393 X 205 = 478.60 tax due and then you should have credits of 63 X 40 = 2520 so their would be no tax due on your earnings to date. I think you need to contact the tax office and ask them if they have allocated you tax credits and cut off points and if not this would seem to be the issue.

Backstreet Moyes

Dinisdos wrote: »

Hi , the only way I could come up with any kind of figure like that is if the tax office are taking your 9 weeks at €208 = €1872 plus roughly
3 weeks pay (3 X 173 = 519) so total pay would be 2393 and if they have issued a cert with no cut off points and no tax credits that would all be taxable at 41% which equals 981 roughly. Just say that this is the figures they are using they have not allocated you any tax credits or cut off points which would normally be around 630 cut off point per week and 63 tax credit per week . This is week 40 in the tax year so if you had 40 weeks X 630 = 25200 so all the earnings would be at 20% . So the full 2393 X 205 = 478.60 tax due and then you should have credits of 63 X 40 = 2520 so their would be no tax due on your earnings to date. I think you need to contact the tax office and ask them if they have allocated you tax credits and cut off points and if not this would seem to be the issue.

I am meant to meet with my boss later. Do you think i should be better off taking it up with the tax office tomorrow instead. The tax office said they sent out my tax credits to my new employer last week. Is their anyway their accountant made a mistake or do you think it's a tax office mistake.

Dinisdos

Well if you meet your boss later ask him what has come in on the tax cert for you , he should be able to see from the payroll system , it could be a mistake from the accountant or from the Revenue but I would get your boss to check with the accountant to see what he/she has received and if they have 0 figures you will need to contact the revenue again or if they have just be inputted incorrectly , your employer should be able to make the changes on the payroll next week and once the cert is on a cumulative basis you should get a tax refund.

Backstreet Moyes

Thanks Dinsidos i just met with him. He said it was my p45 that caused the problem. He said my former employer TUS had my tax credits as 0 while working their. So he said that's where all the tax came from. He said if i go to the tax office tomorrow they should sort it but was surprised the tax office didn't realise the mistake by TUS.

Dinisdos

Your very Welcome, you would have thought somebody in revenue would have seen that as a mistake or checked to see why there was no credits or cut off points but at least you know what the issue is now and the tax office should be able to issue a new cert immediately.

ibarelycare

Revenue take no responsibility for something like that unfortunately. They will go by what is on the P45 and they won't question anything, it is up to the individual to sort something like that out themselves. If you phone Revenue and ask them to transfer all your credits and cut-off to your new employment, they will be able to do it immediately.

2ndcoming

Your employers made the mistake on this one. Whoever made up the P45 from the TUS job didn't bother to include your credits on it (not that uncommon as they very rarely charge any employees tax given the nature of it) and then your new employer took that P45 as gospel instead of downloading the new tax cert from ROS for you. You had already contacted Revenue and they told you your cert had issued the previous week.

Employers using P45's and presuming those figures are correct is the main cause of people ending up with underpayments of tax, as you could have had another job in between which would not be included, or you could have had taxable social welfare in between which wouldn't be included either.

ibarelycare

2ndcoming wrote: »

Your employers made the mistake on this one. Whoever made up the P45 from the TUS job didn't bother to include your credits on it (not that uncommon as they very rarely charge any employees tax given the nature of it) and then your new employer took that P45 as gospel instead of downloading the new tax cert from ROS for you. You had already contacted Revenue and they told you your cert had issued the previous week.

Employers using P45's and presuming those figures are correct is the main cause of people ending up with underpayments of tax, as you could have had another job in between which would not be included, or you could have had taxable social welfare in between which wouldn't be included either.

I don't think it is the new employer's fault. Revenue would have received the P45 from the previous employer and issued a new tax cert with NIL credits, as that's what the P45 showed. So the fault lies with the previous employer for not filling out the P45 correctly.

Backstreet Moyes

Thanks lads hopefully get it sorted today when go down to tax office. Going to have no wages this week over it hopefully will be sorted for next week. I will let you know what the tax office says.

2ndcoming

ibarelycare wrote: »

I don't think it is the new employer's fault. Revenue would have received the P45 from the previous employer and issued a new tax cert with NIL credits, as that's what the P45 showed. So the fault lies with the previous employer for not filling out the P45 correctly.

No, if it's his only employment the credits automatically transfer there. As the TUS was his only previous employment the credits were automatically assigned there too, they were just left off the P45 by the employer. A P45 won't override Revenue's record though re credits, it's only used to get the pay & tax figure.

I'd be willing to bet a large sum the cert that issued the previous week had the standard single credits (personal & paye) on it, but the employer didn't bother to download it and just went off the P45.

ibarelycare

2ndcoming wrote: »

No, if it's his only employment the credits automatically transfer there. As the TUS was his only previous employment the credits were automatically assigned there too, they were just left off the P45 by the employer. A P45 won't override Revenue's record though re credits, it's only used to get the pay & tax figure.

I'd be willing to bet a large sum the cert that issued the previous week had the standard single credits (personal & paye) on it, but the employer didn't bother to download it and just went off the P45.

Sorry yeah you're probably right, I misread!