Paid Double PAYE & PRSI from last month

.ak

Ugh, taxes completely do my head in. I just don't understand them. In my payslip this month I seem to have paid a huge amount of tax, more than double than I did last month. I have earned more this month than last, but I certainly didn't earn double. Is this to do with the cut off rate?

I've looked through the Revenue website but unless you have an understanding for the terminology used I find it difficult to get my head around. What should I be looking for? Have I earned 'too much' and been taxed double because of it? If so how do I find out how much I can earn without being hit for double the amount again?

Citizenpain

The stickies have good info on understanding tax

but for now cust compare your tax credits from December's Payslip to January --
is there a big reduction? - Multiply it by 12 and tell us what it is

or go into Payanytime on revenue.ie and compare your credits vs last year - are you missing something?

are you paying LPT through payroll?

.ak

Citizenpain wrote: »

The stickies have good info on understanding tax

but for now cust compare your tax credits from December's Payslip to January --
is there a big reduction? - Multiply it by 12 and tell us what it is

or go into Payanytime on revenue.ie and compare your credits vs last year - are you missing something?

are you paying LPT through payroll?

Tax creds the same, €293.

Not sure what LPT is?

Citizenpain

LPT is local property tax

you must have hit the 41% Tax band for a fair chunk of income

or else your band is wrong - unlikely thoght if your credits are right

you only have one employer?

assuming you are single and based on the info you have given

your first 1465 will have Zero PAYE
1466 to 2733 will be at 20%
2734+ at 40%

any overs/unders in a month level out as the year goes on

.ak

Ah. That's what it probably is. I was well over my hours this month so I probably got hit with with the 40%.

Thanks for that, seems simple now.

One last question, how you mean it will level out?

Citizenpain

Say next month you earn 2500 --
there is 233 of the lower band (2733 - 2500) that would have been charged at 20% in the month if it was earned.
this unused band will be taken back to the previous month that you were taxed at 41 % on ( so you will get a credit of about €49

In my efforts to simplify this I'm probably overly complicating it sorry !!! but what i'm trying to say is that if in some months your pay moves significantly over or under the 41% band it all comes together by the end of the year to be

your first 1465 X 12 will have Zero PAYE
(1466 to 2733) X 12 will be at 20%
2734 X 12+ at 40%

.ak

Gotcha, thanks!