Tax Calculation Thread

CIARAN_BOYLE

vanman99 wrote: »

Can you explain what that means?

http://www.revenue.ie/en/tax/it/week-1-basis.html

vanman99

That doesn't really explain it though, 2 and a half months into the year they remove the credit, the credit is worth €810 for the year, i'm not getting it, how have they determined i would have a lot to repay?

Plus shouldn't my tax band change have outweighed anything owing? I'm just not getting how they worked this out that I get no benefit from a lower tax band.

Zebrano

How many tax credits are a married couple entitled to between them

relax carry on

Zebrano wrote: »

How many tax credits are a married couple entitled to between them

The same as two single people added together. They may, depending on what basis of assessment they opt for and incomes, be able to transfer some unused credits and rate band between themselves. They may also in limited circumstances be entitled to additional reliefs or credits.

Zebrano

relax carry on wrote: »

The same as two single people added together. They may, depending on what basis of assessment they opt for and incomes, be able to transfer some unused credits and rate band between themselves. They may also in limited circumstances be entitled to additional reliefs or credits.

So 3300 each

relax carry on

Zebrano wrote: »

So 3300 each

Yes so long as both are entitled to the paye credit as well as the personal tax credit.

gavmcg92

Hi All,
Have a quick question.

I started my first full time position a couple of months ago but I still have a part time job on going. As such, I have had to split my tax credits. I was taking a look into my wages the other day just to check and see how things are going with them and it seems like I gave a little too much coverage over to my part time job.

My initial aim was to have my credits match my tax so I was essentially not paying any tax for the part time work. Now it seems like there's 40/50 euro in credits a month that aren't being used. My question is, will this money be given back to me at the end of the year by revenue or do I need to make sure that my credits are distributed correctly?

Cheers guys!

gambit83

Just wondering if anyone is in a similar position or was and what is the course of action.

I was self-employed in 2012 and 2013 and did my Income Tax Return for these years, I was PAYE in 2014 but returned to being self-employed in 2015.

I logged onto my ROS account and it says that a 2014 Form 11 is due at the end of October 2015. Within the Form 11 their is a PAYE section with Gross Income, USC, PAYE tax deducted, etc. I filled in what I think are the relevant boxes and when it calculates it says that I have a tax liability. Can this be right? Can I have a tax liability for the year even though all my income was earned as PAYE and I was already taxed on it?

Any advice would be great

Gard1

Technically there shouldnt be but thats not always the case.
First step is check your PAYE anytime to see what tax credits you had during 2014 ie Medical insurance relief or flat rate expenses which increase your tax credits and if they are omitted from the form 11 it will leave a balance outstanding according to the form.

Synchronicity

Hi folks,

I'm self employed/a stay at home dad and I earn between €20,000-€23000 before expenses (usually about €17500-€20000 net). My wife (we just got married) earns €50000 as a public servant.

Is there any advantage for us in being jointly assessed?

Any advice greatly received, thanks.

Citizenpain

Synchronicity wrote: »

Hi folks,

I'm self employed/a stay at home dad and I earn between €20,000-€23000 before expenses (usually about €17500-€20000 net). My wife (we just got married) earns €50000 as a public servant.

Is there any advantage for us in being jointly assessed?

Any advice greatly received, thanks.

Congratulations - Yes there is a benefit but you can still opt for separate assessment and claim any unused bands /credits at the end of the year

Take a read of this
http://www.revenue.ie/en/tax/it/leaflets/it2.html

Roxee

Hi there, hoping someone might be able to help.

I'm full time PAYE but file each year for some additional self employed income. I understand the idea of both incomes going in so that USC can be recalculated for full amount. And I understand the 2014 USC bands.

However, the amount being assessed for USC is too high, its X (PAYE income) plus Y (taxable SE income) plus Y again. I can't see what I've done to make it think my income is actually X + Y + Y! Driven demented. It's such a simple return I never hire an accountant, not worth it.

Does this mean anything to anyone I wonder? Ideas welcome. Thanks so much!

deathtocaptcha

anyone know how a self employed person could go about writing off a new iPhone (sim free, paid for in a lump sum)?

am i right in thinking it's classed as an asset and depreciated over 8 years @ 12.5%? (seems rather silly given the fact it'll only be used for a year or two)

mickdw

deathtocaptcha wrote: »

anyone know how a self employed person could go about writing off a new iPhone (sim free, paid for in a lump sum)?

am i right in thinking it's classed as an asset and depreciated over 8 years @ 12.5%? (seems rather silly given the fact it'll only be used for a year or two)

I think all equipment goes in for 8 year depreciation.
I suppose you could dispose of it end of year 2 for example to any business who would give you a receipt for it. If it sold for 100 euro, full adjustment could be carried out.
Maybe there is a simpler rule considering it's only a phone.
Would it not be much easier to have a business phone on a monthly bill?

deathtocaptcha

mickdw wrote: »

I think all equipment goes in for 8 year depreciation.
I suppose you could dispose of it end of year 2 for example to any business who would give you a receipt for it. If it sold for 100 euro, full adjustment could be carried out.
Maybe there is a simpler rule considering it's only a phone.
Would it not be much easier to have a business phone on a monthly bill?

well I guess selling it anywhere online via ebay or something would create a paper trail and make it easy to document...

the reality is it's cheaper in the long run to buy the phone outright and pay for a 30 day plan, particularly if you upgrade regularly... plus there's the benefit of being able to buy directly from apple and get the phone unlocked (important if you travel a bit and use various sim cards)...

sweetpea10

Hi there,

I'm self-employed and just filed Form 11 - a net loss for the year.

I received a refund (€2,050) under the Professional Services Witholding Tax during the year and I have been assessed for the amount of the refund by Revenue.

I put in 0.00 instead of the revenue assessment of (€2,050) in the Income tax calculation section but my notice of assessment looks for the refunded amount.

How do i change this so there is no tax liability? (There shouldn't be any due to net loss for the period).

Thanks.

Little CuChulainn

Is there a maximum amount of health expenses you can claim for a year?

relax carry on

Little CuChulainn wrote: »

Is there a maximum amount of health expenses you can claim for a year?

No max but if it's large, you would probably be asked for proof of the claim.

Little CuChulainn

To work out my tax liability manually is it (Gross Pay - Health Expenses) before calculating the standard and higher rate tax then subtracting credits from the combined tax figure.

CIARAN_BOYLE

Little CuChulainn wrote: »

To work out my tax liability manually is it (Gross Pay - Health Expenses) before calculating the standard and higher rate tax then subtracting credits from the combined tax figure.

No work out your pay and tax normally then subtract health expenses x20%

absolute_ zero_ 2117

I'm currently earning €356.85/week on a 6 month contract. How much USC should I be paying? By my calculations I owe roughly €316 every year, but according to my payslip I'm paying €28.55 this week. Is there something I may be missing?

CIARAN_BOYLE

absolute_ zero_ 2117 wrote: »

I'm currently earning €356.85/week on a 6 month contract. How much USC should I be paying? By my calculations I owe roughly €316 every year, but according to my payslip I'm paying €28.55 this week. Is there something I may be missing?

Thats 8% I believe. which means your usc may not be allocated with your employment.

absolute_ zero_ 2117

CIARAN_BOYLE wrote: »

Thats 8% I believe. which means your usc may not be allocated with your employment.

This is my second week on the job and I'm on emergency tax as I'm still waiting on my tax certificate form Revenue, would that be the cause?

CIARAN_BOYLE

absolute_ zero_ 2117 wrote: »

This is my second week on the job and I'm on emergency tax as I'm still waiting on my tax certificate form Revenue, would that be the cause?

yes exactly 8% USC is the emergency tax rate of usc. USC is on a cumulative basis so you will get credit for taxes paid when your next payslip comes in.

absolute_ zero_ 2117

CIARAN_BOYLE wrote: »

yes exactly 8% USC is the emergency tax rate of usc. USC is on a cumulative basis so you will get credit for taxes paid when your next payslip comes in.

So I can expect this to all even out after the tax certificate arrives?

CIARAN_BOYLE

absolute_ zero_ 2117 wrote: »

So I can expect this to all even out after the tax certificate arrives?

yes that is how it should work

wally79

Hi,

This has probably been answered previously.

Is there a calculator to work out the benefits of joint assessment for a married couple.

Also, could someone point me to a guide on how to register for joint assessment.

Thanks in advance

CIARAN_BOYLE

wally79 wrote: »

Hi,

This has probably been answered previously.

Is there a calculator to work out the benefits of joint assessment for a married couple.

Also, could someone point me to a guide on how to register for joint assessment.

Thanks in advance

If one party earns more than 33800 and one party earns less there is benefits.

Same if one party earns more than 16,500 and the other earns less.

The process is outlined in this thread on page 1

http://www.boards.ie/vbulletin/showthread.php?t=2057575698

Blitz17

Just a quick question, Was looking at my payslip earlier and noticed my SRCOP was 637.52 instead of 650.

With a little digging I found my tax credit and tax band have been decreased due to Jobseeker Benefit.

I finished a job in January, claimed for 3 weeks and signed off as I picked up another job then.

Anyone be able to give some info on this? Does it stay like that for the year or what?

Thanks

relax carry on

Blitz17 wrote: »

Just a quick question, Was looking at my payslip earlier and noticed my SRCOP was 637.52 instead of 650.

With a little digging I found my tax credit and tax band have been decreased due to Jobseeker Benefit.

I finished a job in January, claimed for 3 weeks and signed off as I picked up another job then.

Anyone be able to give some info on this? Does it stay like that for the year or what?

Thanks

Yes, as the missing portion has been used by your jobseekers benefit which is a taxable source of income.