Basic income tax questions.Is it completely worthless working as many hours as I do?

harbtibes

I'm employed in a restaurant in the city. I've been working crazy hours since I started there about 2 months ago (55-70 per week) because it's an understaffed sub-par restaurant with bad management and the staff keep leaving. I earn 9.50/hour My coworker mentioned that beyond 39 hours per week, working just isn't as worthwhile because the taxation on the extra hours you do is much higher. I don't want to be getting the equivalent of €4/hour after tax for extra hours that I do. I just handed in my p45 from my last employment recently so I will cease being charged on emergency tax basis for my next paycheck (I have been charged ET up until now).

Can anybody explain this to me and break down the tax process for hours worked over 30? I am a single 25 y/o male.

Also, are my tax credits available to me before the end of the year or must I wait until the nd of the year to claim them?

Thanks

Geuze

The two standard tax credits are as follows:

Single tax credit = 1650 pa
PAYE tax credit = 1650 pa

So 3300 pa tax credits for you.

The tax rates are 20% and 41%.

The SRCOP, standard rate cut-off point is 32800.

What this means is up to 32800 you are taxed at 20%, after that 41%.

Geuze

Example:

20,000 wages

20% tax is 4000 gross tax due

less tax credits of 3300

means you pay 700 tax, so 3.5% tax paid on 20,000 wages.

But if you earn an extra euro, you will pay 20% extra tax on that.

That's know as the marginal tax rate.

Alan Shore

Ya plus 4% PRSI and 7% USC = 31% that's the marginal tax rate!