Question about taxes on the earning

bahamut88

Hello guys,
I hope you can help.

So, I've never worked in Ireland before. I've been hired on the 14 of April and I'm receiving my wage. So far so good, however I've never paid one single cent of PAYE in my payslip.

Is it normal? I've been to my payroll specialist withing the company and he says that everything is fine but I'm worried...

Thanks!

mozattack

Hi there, if you haven't had any income so far in Ireland you should have unused tax credits which is probably the reason why no PAYE has been deducted (same applies for USC but the entry point is lowe). PRSI may still apply as this is tax on a non-cumulative basis

bahamut88

I've never understood anything about taxes and I think I never will .

Thanks for your reply. But it's weird, I'm basically earning more than I should, when will I start paying taxes? Will I have to pay this earnings back?

mozattack

It depends on your level of income versus tax credits...

Assuming you have the "normal tax credits", e.g €3,300 per annum and assuming this is week 30 of the payroll year it won't be until your pay breaches €9,519 that income tax will be due. Another assumption here is that this is your only source of income.

USC will kick in a lot earlier, when earnings breach €5,790 at week 30 (more or less).

Obviously the more you earn the faster you reach these points and remember these points change week on week - see some numbers below, they are my estimated cumulative thresholds (the first amount is income tax, second amount is USC)

PRSI is on a week by week basis


Income Tax USC
WK 30 9,519.23 5,790.00
WK 31 9,836.54 5,983.00
WK 32 10,153.85 6,176.00
WK 33 10,471.15 6,369.00
WK 34 10,788.46 6,562.00
WK 35 11,105.77 6,755.00
WK 36 11,423.08 6,948.00
WK 37 11,740.38 7,141.00
WK 38 12,057.69 7,334.00
WK 39 12,375.00 7,527.00
WK 40 12,692.31 7,720.00
WK 41 13,009.62 7,913.00
WK 42 13,326.92 8,106.00
WK 43 13,644.23 8,299.00
WK 44 13,961.54 8,492.00
WK 45 14,278.85 8,685.00
WK 46 14,596.15 8,878.00
WK 47 14,913.46 9,071.00
WK 48 15,230.77 9,264.00
WK 49 15,548.08 9,457.00
WK 50 15,865.38 9,650.00
WK 51 16,182.69 9,843.00
WK 52 16,500.00 10,036.00

namenotavailablE

You can download my Excel tax calculator (see the download link in my signature when you are logged in or on the 'About me' tab of my profile) to check the expected pay period of when you'll start paying tax.
You'll need to set the correct start date of your employment and tax credits/ standard rate band for an accurate result but if you need a hand, PM me.

bahamut88

Thanks for your replies, really appreciated.

@namenotavailabl I can't seem to find this tax calculator on your profile even If I'm logged in!

namenotavailablE

When logged in (ie you entered a username and passwords on Boards.ie, not just a casual browser) you should see my signature underneath all of my posts.

On my profile, there is a tab titled "About me" which when clicked will also show the signature link to the calculator download page

bahamut88

Thanks for your message!

This tool looks very nice and helpful.