Is new job worth it becuase of tax?

lifeandtimes

Hi Guys,

Maybe someone with experience can shed some light on this for me?

Im currently in the process of getting a new job,onto to final interview stage(not counting my chickens before they are hatched) but they have told me the job pays 35k before tax.

Now i know the standard cut off rate for 42%(or something similar) is 2800 a month or above and with a quick calculation that would mean i would be coming out with a pay of just under 2000 a month.

Would that be right? My current job pays about that as im on the lower tax band and if it is it may not be worth it as we are struggling financially as it is.

Any advice is appreciated.

Thanks

eezipc

I don't think that is correct.
You pay 20% tax on your salary up to €33,800
Then you are taxed 42% on anything over that amount. So you will be taxed 42% on €1,200 euro.

barneystinson

lifeandtimes wrote: »

Hi Guys,

Maybe someone with experience can shed some light on this for me?

Im currently in the process of getting a new job,onto to final interview stage(not counting my chickens before they are hatched) but they have told me the job pays 35k before tax.

Now i know the standard cut off rate for 42%(or something similar) is 2800 a month or above and with a quick calculation that would mean i would be coming out with a pay of just under 2000 a month.

Would that be right? My current job pays about that as im on the lower tax band and if it is it may not be worth it as we are struggling financially as it is.

Any advice is appreciated.

Thanks

Awwwww Jebus.....

Look, tax is only ever a PERCENTAGE of your salary.

If your salary goes up, your take home pay goes up too, all other things being equal.

Yes, the PERCENTAGE you pay in taxes hits 50% at a point, after which every extra Euro in additional pay only equates to an extra 50c in your take home pay, but it's still more money in your take home pay.

I can't believe the amount of people who don't get this.

elle.en

If you search "tax calculator" in Google, a few calculators will come up - You can enter your gross pay and any deductions such as pension contributions and it will give you your net take home pay.

elle.en

If you search "tax calculator" in Google, a few calculators will come up - You can enter your gross pay and any deductions such as pension contributions and it will give you your net take home pay.

€35k with no other deductions gives a net take home pay of €2,339 p.m.

lifeandtimes

thanks for everyones input...the tax calculator gave me a good insight, appreciate it everyone :-)

nc19

barneystinson wrote:

I can't believe the amount of people who don't get this.

Condescending post is condescending

Geuze

eezipc wrote: »

I don't think that is correct.
You pay 20% tax on your salary up to €33,800
Then you are taxed 42% on anything over that amount. So you will be taxed 42% on €1,200 euro.

The top tax rate is 40% in 2015.

eezipc

Geuze wrote: »

The top tax rate is 40% in 2015.

You are correct, thanks.
So.....
You pay 20% tax on your salary up to €33,800
Then you are taxed 40% on anything over that amount. So you will be taxed 40% on €1,200 euro.

edward2222

elle.en wrote: »

If you search "tax calculator" in Google, a few calculators will come up - You can enter your gross pay and any deductions such as pension contributions and it will give you your net take home pay.

I tried to type tax calculator,
but there are different kinds of calculator here.
how should I know that this is the real tax calculator.

edward2222

elle.en wrote: »

If you search "tax calculator" in Google, a few calculators will come up - You can enter your gross pay and any deductions such as pension contributions and it will give you your net take home pay.

I tried to type tax calculator,
but there are different kinds of calculator here.
how should I know that this is the real tax calculator.?

Mellor

nc19 wrote: »

Condescending post is condescending

Maybe, but he has a point. There's a huge number of people that think if salary goes over the threshold, that their take home could be less. Which is quite baffling. (talking specifically about income tax, I appreciate that other thresholds could impact take home)

edward2222

eezipc wrote: »

I don't think that is correct.
You pay 20% tax on your salary up to €33,800
Then you are taxed 42% on anything over that amount. So you will be taxed 42% on €1,200 euro.

I agree.

elle.en

edward2222 wrote: »

I tried to type tax calculator,
but there are different kinds of calculator here.
how should I know that this is the real tax calculator.

The first 2 results that come up are from Deloitte & PwC - Both calculators give the same net figures. I don't understand what you mean by "real" tax calculator?

Captain Chaos

eezipc wrote: »

You are correct, thanks.
So.....
You pay 20% tax on your salary up to €33,800
Then you are taxed 40% on anything over that amount. So you will be taxed 40% on €1,200 euro.

With USC the effective tax bands are 30% and 50%. I lump USC in with standard income tax as it will never be removed in our lifetime.

Because of the tax bands I refuse extra hours once I hit my higher rate cut off as it's not worth my while for the small increase in take home pay for working unsocial hours. I have it calculated on what overtime I will do and then refuse the rest. So do most of the other staff in the company I might add. Only trainees and entry level wages work all the overtime as they won't hit the higher bracket.

The 50% rate starting at 34k is crazy imo, and there should be another tax band or increase the 50% start point up to around 42k at least.

relax carry on

A lot of people look at or see the marginal rate and somehow that automatically applies to all their earnings. Try digging out last year's p60 to figure out what your effective tax rate was for the year. (Total tax deducted as a percentage of Gross income for the year). When tax credits and any other reliefs are taken into account you may discover that overall you aren't crippled by taxes.

Geuze

relax carry on wrote: »

A lot of people look at or see the marginal rate and somehow that automatically applies to all their earnings. Try digging out last year's p60 to figure out what your effective tax rate was for the year. (Total tax deducted as a percentage of Gross income for the year). When tax credits and any other reliefs are taken into account you may discover that overall you aren't crippled by taxes.

Yes, they confuse the MTR with the ATR.

Marginal tax rate

Average tax rate

My father pays 24% MTR, but his effective rate on 49k is under 10%.

My MTR is 51%, but my effective rate is 26-30%.

Geuze

Captain Chaos wrote: »

With USC the effective tax bands are 30% and 50%. I lump USC in with standard income tax as it will never be removed in our lifetime.

The 50% rate starting at 34k is crazy imo, and there should be another tax band or increase the 50% start point up to around 42k at least.

20 tax + 7 USC + 4 PRSI = 31% marginal rate

40 tax + 7 USC + 4 PRSI = 51% marginal rate

Yes, a third rate is needed, or even four rates. And scrap the USC.

I suggest: 20%-30% 40% 50%