Why my tax rate keeps changing?

masterboy123

Hello everyone,

I don't understand why my netpay is lower this time, given the fact I actually worked more hours this time. Can anyone please advice? Here are the payslip details:
27 February Payslip:-

Basic Pay (78 hours) - 1488.70/-
Accomodation allowance - 267.54/-

PAYE - 64.36/-
PRSI - 70.25/-
USC - 85.23/-
Pension Levy - 103.51/-
Pension - 64.52/-

Total Deductions - 387.87/-
Net Pay - 1368.32/-


13 March Payslip:-
Basic Pay (85.50 hours) - 1637.57/-
Accomodation allowance - 110.16/-

PAYE - 187.26/-
PRSI - 69.91/-
USC - 96.14/-
Pension Levy - 102.66/-
Pension - 74.20/-

Total Deductions - 570.17/-
Net Pay - 1217.56/-

I noticed in March payslip, the PAYE is significantly higher, what can be the reason?
And also, the accomodation allowance is lower in March.

Anyone have idea why I end up paying more tax this time? How can i avoid such high tax rate? I am married with no child.
I get paid fortnightly.

Annual tax credit 3300/-
Annual cut off point 41800/-

Thanks everyone!

CIARAN_BOYLE

What is accommodation allowance?

How do you get 41800 as a cut off point without being married, 32800 is normal.

I would assume that in your earlier payslip you have the benefit of unused credit and cutoff from earlier in the year

masterboy123

ok,
i have written in the end of my thread that I am married.

CIARAN_BOYLE wrote: »

What is accommodation allowance?

How do you get 41800 as a cut off point without being married, 32800 is normal.

I would assume that in your earlier payslip you have the benefit of unused credit and cutoff from earlier in the year

Legend100

need to see your year to date (cumulative) figures to give you an answer - not just the individual month

namenotavailablE

You could try running your figures through a tax calculator to see if they tally with your payslip- see my signature for a spreadsheet link.

Mongarra

Unless your spouse is using half of the married tax credit your tax credit should be €4,950 (Married credit €3,300 plus PAYE credit €1,650). Also, your pay was below your cut-off point in February but over it in March so you would probably have paid 41% tax on some of the March pay (depending on cumulative pay figures for earlier in the year, as Legend100 pointed out.

As regards the accommodation allowance, I would not know enough about this to comment, but I presume it varies depending on the number of overnights involved.

masterboy123

Yes my wife is using the tax credits also but i am the assessible spouse.

This is my first job in Ireland which stared from 13 January 2014. I have not crossed the annual cut off point which is 41800 @ 20% tax.

Waiting for my next salary to see if i end up paying the same extra PAYE charges...

CIARAN_BOYLE

masterboy123 wrote: »

Yes my wife is using the tax credits also but i am the assessible spouse.

This is my first job in Ireland which stared from 13 January 2014. I have not crossed the annual cut off point which is 41800 @ 20% tax.

Waiting for my next salary to see if i end up paying the same extra PAYE charges...

The 41800 is cumulative

There hqs been 11 weeks so far this year. If you have earned 8800 so far this year the excess will be taxed at 41%

masterboy123

Gross pay to date: 5584
Taxable Pay to date: 5065
Accomodation allowance:110.16
Tax to date:251.62
Annual tax credit: 3300
Annual cut off point 41800
PRSI Weeks to Date: 7
Employee PRSI to date: 223.
Annual pay:38839.

I am married and my wife is working also at minimum wage, we are jointly assessed for tax.
Is there any way I can reduce my taxes?

CIARAN_BOYLE wrote: »

The 41800 is cumulative

There hqs been 11 weeks so far this year. If you have earned 8800 so far this year the excess will be taxed at 41%

CIARAN_BOYLE

masterboy123 wrote: »

Gross pay to date: 5584
Taxable Pay to date: 5065
Accomodation allowance:110.16
Tax to date:251.62
Annual tax credit: 3300
Annual cut off point 41800
PRSI Weeks to Date: 7
Employee PRSI to date: 223.
Annual pay:38839.

I am married and my wife is working also at minimum wage, we are jointly assessed for tax.
Is there any way I can reduce my taxes?

Given the pay quoted above your paye is too low.

masterboy123

ok so i shouldn't be questioning about my taxes.

CIARAN_BOYLE wrote: »

Given the pay quoted above your paye is too low.