First time worker having tax problems

TheStook

Hello, so I just started working for a recruitment agency and its my first job officially so im getting emergency taxed. However, I don't know which tax from my payslips are the emergency tax which I know im due back.

Theres a part of my payslip called "Cum tax" which im sure is short for something. The year total thus far for that tax is almost 25% of my gross pay total so im assuming its that?

I filled out the 12A form a few weeks ago and sent it off but im still being heavily taxed.

Any help would be much appreciated

Stheno

TheStook wrote: »

Hello, so I just started working for a recruitment agency and its my first job officially so im getting emergency taxed. However, I don't know which tax from my payslips are the emergency tax which I know im due back.

Theres a part of my payslip called "Cum tax" which im sure is short for something. The year total thus far for that tax is almost 25% of my gross pay total so im assuming its that?

I filled out the 12A form a few weeks ago and sent it off but im still being heavily taxed.

Any help would be much appreciated

Cumulative tax is tax year to date I think.

Do you know if the company you work for use Revenue On line?

readytosnap

it would be cumulative tax (total tax so far),
if you are paying emergency tax then the Cumulative tax is what you have paid, you should get all of that tax back when you get your tax credit certificate.

Nino Brown

TheStook wrote: »

Theres a part of my payslip called "Cum tax" which im sure is short for something.

I can live with the property tax, I can live with water charges, but this is crossing the line!

readytosnap

Nino Brown wrote: »

I can live with the property tax, I can live with water charges, but this is crossing the line!

yeah. it's below the belt alright.

relax carry on

TheStook wrote: »

Hello, so I just started working for a recruitment agency and its my first job officially so im getting emergency taxed. However, I don't know which tax from my payslips are the emergency tax which I know im due back.

Theres a part of my payslip called "Cum tax" which im sure is short for something. The year total thus far for that tax is almost 25% of my gross pay total so im assuming its that?

I filled out the 12A form a few weeks ago and sent it off but im still being heavily taxed.

Any help would be much appreciated

Since it's your first employment, filling in the 12a was the correct step. Depending on what office you sent it to, it can take a number of weeks to process it due to staff numbers. Once processed, a tax credit cert is issued to your employer, to allow them to tax you correctly.
If you have overpaid tax your employer will refund you in your wages once they operate off the new tax credit cert.

TheStook

relax carry on wrote: »

Since it's your first employment, filling in the 12a was the correct step. Depending on what office you sent it to, it can take a number of weeks to process it due to staff numbers. Once processed, a tax credit cert is issued to your employer, to allow them to tax you correctly.
If you have overpaid tax your employer will refund you in your wages once they operate off the new tax credit cert.

Yeah Ive been told that Im getting the tax back this coming Thursday, Im just confused about how much Im getting back.

My gross pay thus far is €1035, the "Cum tax" total is €250, PRSI ER(?) is €88.

Every week a ridiculous amount of PAYE is taken from my gross pay and added to the "Cum tax" total but I was told today that the "cum tax" is not the emergency tax that Im due back, which I was convinced it was.

Surely I cant be paying over 30% of my gross pay (inc USC) in tax? Or is that right? If so, as a newcomer to this tax game, **** THAT ****.

Thanks in advance.

Stheno

TheStook wrote: »

Yeah Ive been told that Im getting the tax back this coming Thursday, Im just confused about how much Im getting back.

My gross pay thus far is €1035, the "Cum tax" total is €250, PRSI ER(?) is €88.

Every week a ridiculous amount of PAYE is taken from my gross pay and added to the "Cum tax" total but I was told today that the "cum tax" is not the emergency tax that Im due back, which I was convinced it was.

Surely I cant be paying over 30% of my gross pay (inc USC) in tax? Or is that right? If so, as a newcomer to this tax game, **** THAT ****.

Thanks in advance.

You have to pay a certain amount of tax.

You have no tax credits, so your entire income is being taxed.
Now you are getting credits which are about 63 euro a week.

So you will get that 63 euro back for each week that you have been working, and possibly more as if you have only started working in the past month you have built up that credit since January

You will not get back any USC or PRSI

PRSI (ER) is employer PRSI which is not paid by you

TheStook

Stheno wrote: »

You have to pay a certain amount of tax.

You have no tax credits, so your entire income is being taxed.
Now you are getting credits which are about 63 euro a week.

So you will get that 63 euro back for each week that you have been working, and possibly more as if you have only started working in the past month you have built up that credit since January

You will not get back any USC or PRSI

PRSI (ER) is employer PRSI which is not paid by you

Thanks for the reply!
I know I wont get back USC and PRSI, but am I able to tell from my payslip how much tax Im due back then?

Yeah twice I got a tax credit of 32 quid. This is all very confusing haha.

Stheno

TheStook wrote: »

Thanks for the reply!
I know I wont get back USC and PRSI, but am I able to tell from my payslip how much tax Im due back then?

Yeah twice I got a tax credit of 32 quid. This is all very confusing haha.

yeah that tax credit of 32 quid is applied in the initial weeks of emergency tax and then reduces which is why you pay more and more.

how long are you working there (how many weeks) and have you worked anywhere else at all this year

Mrs OBumble

TheStook wrote: »

am I able to tell from my payslip how much tax Im due back then?

No, not for certain.

We can help you estimate, but it depends on a whole lot of factors including wheher you're married, have children, a sole parent, received any social welfare, are in a job that has a flat-rate allowance etc etc.

Just be patient, and see what your payslip says.




In general, in Ireland:

You don't pay anything except PRSI and USC on the first 15,000 you earn each year, ie hardly any tax on that.

You pay 20% + PRSI and USC on the amount between 15,000 and 33,000, ie a moderate amount.

You pay 41% + PRSI and USC on everything above 33,000. This works out ot be 52$% on this part of your income, and can be a lot.

Each week, fortnight or month when you get paid, your employer looks at your tax-credits certificate, and estimates how much tax you should have paid assuming you are going to earn the same weekly amount for the rest of the year. And they adjust the amount of tax based on that. This is how you will get your overpaid tax back once your employer gets your tax-credits certificate from Revenue.


Now, this is a big simplification, and I've rounded of a few of the numbers to help you get the general idea.

To see the exact numbers, read here: http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/how_your_tax_is_calculated.html

I know it sounds horribly complicated - but really, Revenue's tax system is one of the best organised government systems in Ireland as far as I can see!



Welcome to the workforce, and to paying tax. None of us want to do it. But we all want the things it pays for (hospitals, schools, roads, social welfare, clean water, etc)

Clive

OP, you will get USC back. If you''ve been on the emergency basis your USC will have been calculated at 7%, once your cutoff points are applied any overpayment will come back to you.

USC is calculated in a cumulative basis now, just like tax.

mickwasere12

Hi, i have just started work too, on my payslip it says i am paying over 100 a week PAYE do i get all of this back?

relax carry on

mickwasere12 wrote: »

Hi, i have just started work too, on my payslip it says i am paying over 100 a week PAYE do i get all of this back?

If it's your first job ever then you need to wait to have your form 12a processed by Revenue as they would have no record of you at all.
Once the form is processed, a tax credit cert issues to your new employer to allow them to tax you correctly. If you have overpaid tax, your employer will refund this in your wages once they start acting on the new cert.
If it's not your first job then a phone call is all it should take as Revenue have a record for you.