Tax and a second job

brokenarms

Hi.

I currently have a full time job that is 35-37 hours a week on flexible hours.

It pays 13.50 an hour.

I have been offered part time night work on a casual basis . A night here and there through the month. 11 an hour. It is easy work and the extra cash would be handy for Christmas.
Both jobs are above board and fully taxed.

What way does taxation work when a second company is paying PAYE.

WOuld I get skinned by the tax man?

Pawwed Rig

A person gets taxed at 20% (plus PRSI and USC) on the first €32,800 they earn in the year. They also get credits reducing the tax by €3,300.
Should be worthwhile taking the job as even with the USC and PRSI you will come out with 70% or so of the extra income. Be careful that the new job does not give you credits and this could lead to underpayment of tax which will cause you alot of pain next year.
Also be aware if you go above the €32,800 threshold you will be taxed at the higher rate.

These figures are based on you being single and in PAYE employment.

brokenarms

Thanks Pawwed Rig.

Might just go for it..

wonski

Pawwed Rig wrote: »

A person gets taxed at 20% (plus PRSI and USC) on the first €32,800 they earn in the year. They also get credits reducing the tax by €3,300.
Should be worthwhile taking the job as even with the USC and PRSI you will come out with 70% or so of the extra income. Be careful that the new job does not give you credits and this could lead to underpayment of tax which will cause you alot of pain next year.
Also be aware if you go above the €32,800 threshold you will be taxed at the higher rate.

These figures are based on you being single and in PAYE employment.

Very unlikely to have tax credits applied to second job. But you can always check this when logging into paye online. Normally you would have credits applied to first employer (since you earn most there), and no credits for the second one.

Pawwed Rig

wonski wrote: »

and no credits for the second one.

Yeah I know. I am just advising him to make sure that the payroll dept in his new job does not apply tax credits in error. They shouldn't but would be best to keep an eye on it.

Mrs OBumble

wonski wrote: »

Very unlikely to have tax credits applied to second job. But you can always check this when logging into paye online. Normally you would have credits applied to first employer (since you earn most there), and no credits for the second one.

Not quite right: Revenue will allocate the credits appropriately. If almost all income comes from job 1 as in this case, then you're right. But if it's 50/50, then Revenue will happily split the credits accordingly.


Also, there's an error further up: the first 15,000 or so if virtually tax-free. Between 15k and 32k is PAYE taxed at 20%, but is PRSI and USC on top of that.

Pawwed Rig

Mrs OBumble wrote: »

Also, there's an error further up: the first 15,000 or so if virtually tax-free. Between 15k and 32k is PAYE taxed at 20%, but is PRSI and USC on top of that.

That is the tax credits of €3,300 which I mentioned.

wonski

Mrs OBumble wrote: »

Not quite right: Revenue will allocate the credits appropriately. If almost all income comes from job 1 as in this case, then you're right. But if it's 50/50, then Revenue will happily split the credits accordingly.


Also, there's an error further up: the first 15,000 or so if virtually tax-free. Between 15k and 32k is PAYE taxed at 20%, but is PRSI and USC on top of that.

Yep, I based it on OP being on full time job, which is above the threshold for tax free pay. So it will probably end up like this. Was in the same position some time ago, and tax credits were applied for full time job, and none for the second job. Surely if he was working 20 hours in each job, then 50/50 would work better.
Now OP has his answers, do you mind me asking if you can assign these tax credits, and change them during tax year using online PAYE system, like it was possible with couples moving tax credits between each other?

smcgiff

The OP has given enough information here to suggest they sould keep all their tax credits in their main job and only needs a maximum of 26k (approx) of tax bands in his current job. The balance of his tax bands should be transferred to his second job.

Mrs OBumble

wonski wrote: »

do you mind me asking if you can assign these tax credits, and change them during tax year using online PAYE system, like it was possible with couples moving tax credits between each other?

You can, provided you haven't had too many jobs in a year. The last time I did it, I had had 5 jobs, so needed to get Revenue staff to do it for me.