Simple calculation of tax married couple

whatthefurry

I am trying to do a check on our income tax by doing a simple calculation.

I know what we were paid gross, I know what we paid in tax as per our payslips.

My spouse is a civil servant and on the payslip there is a deduction for pension and pension levy. Do I deduct both of these when applying the tax band and rate?

One other question, I was on short time for part of the year, I understand that this is not taxable income, so do I ignore it or does it use up tax credits?

I'm sorry if these are silly questions, I had another thread previously- basically I was made redundant, was on the dole for about 6 weeks and then, tg, got another job but have paid a huge amount of tax since in the new job- and I want to check what is going on overall.

Avatar MIA

http://services.deloitte.ie/tc/

You can use the above. No idea what untaxable short time could be.

If it's income earned from employment it should be taxed.

whatthefurry

oh dear, sorry!

I mean I was put on short time and was able to claim partial dole but they told me that it wasnt taxable income. Then when I was made redundant I was on full dole for about 6 weeks.

I did the calculator and it looks like we have over paid tax by about 5k, but hard to see how this could happen, this is why i am questioning. Like when you do the calculator, do you put in both the levy and the pension as a 'deductable pension payment'. I honestly do not know how accountants do this stuff.

Avatar MIA

whatthefurry wrote: »

oh dear, sorry!

I mean I was put on short time and was able to claim partial dole but they told me that it wasnt taxable income. Then when I was made redundant I was on full dole for about 6 weeks.

I did the calculator and it looks like we have over paid tax by about 5k, but hard to see how this could happen, this is why i am questioning. Like when you do the calculator, do you put in both the levy and the pension as a 'deductable pension payment'. I honestly do not know how accountants do this stuff.

The pension is deductible, but not not the levy. You're correct re the Jobseekers benefit while on short time not being taxable.

The revenue might not do changes to Tax bands/credits at this late stage, but ask Revenue for a P21 statement once you have your P60 and they will recalculate your tax. Find out what was wrong and fix with your employer(s) as early as possible in 2016.

Geuze

Avatar MIA wrote: »

The pension is deductible, but not not the levy.

Note that both normal pension conts and the PRD are both deducted from your gross to arrive at taxable P60 pay.

whatthefurry

So basically if I do:

Gross pay spouse 1 + gross pay spouse 2 + full dole only( less 13 per week)= taxable pay

Less pension ( but not levy), that is the taxable amount.

Then if I tax 67600 of that at 20%, balance at 41%

Less 6600 ( married couple plus em'ee paye credit)

That should be the paye for the year?

Then I have checked my payslip showing cumulative tax and my p45, and my spouse's payslip showing cumulative tax and as far as I can see we paid almost 4k more than we should have in paye. usc and prsi seem correct. But on Paye anytime my current employment figures arent in yet so I suppose I have to wait until they do the year end to try to do a claim back.

also on paye anytime, I am shown as getting a higher figure in jobseekers than I actually got so I have to figure that out too. But I calculated the above based on the amount they 'think' I got, just to double check.

And I found a flat rate expense credit too that we are entitled to, so have claimed that too

whatthefurry

Geuze wrote: »

Note that both normal pension conts and the PRD are both deducted from your gross to arrive at taxable P60 pay.

Hi Geuze, what is 'PRD'?

Avatar MIA

whatthefurry wrote: »

Hi Geuze, what is 'PRD'?

Your spouse is a Civil servant and will probably have paid a pension levy. This is also deductible from Gross pay.

whatthefurry

Yes, that is correct but I am really focusing on the paye paid, not the net pay. So prd= pension levy. But that is not deductable for paye purposes.

Avatar MIA

whatthefurry wrote: »

Yes, that is correct but I am really focusing on the paye paid, not the net pay. So prd= pension levy. But that is not deductable for paye purposes.

The Civil Servant PRD levy is deductible, so you're probably entitled to an even greater rebate than you thought.

USC isn't deductible.

The amount of deductibles has reduced somewhat of late. A couple of the biggest left are medical expenses and educational spends (above the minimum).

whatthefurry

If the pension levy is deductible then the refund is nearly 4.5k, including the flat rate tax credit which I claimed for the last two years.

So to claim a refund it is the p21 statement? Do I need to fill up a form?

One final question, I am worried that this is going to go on into next year, I did ring up revenue and ask them to split the tax credits between us evenly but it doesnt look like they did, at least in December my pay was again way down, at least I got paid but nothing like I should have. Would you advise me to go to an accountant and get things dealt with professionally. I have used a really good accountant in the past and would go to him, just don't want to have to unless necessary due to the fees.

relax carry on

whatthefurry wrote: »

If the pension levy is deductible then the refund is nearly 4.5k, including the flat rate tax credit which I claimed for the last two years.

So to claim a refund it is the p21 statement? Do I need to fill up a form?

One final question, I am worried that this is going to go on into next year, I did ring up revenue and ask them to split the tax credits between us evenly but it doesnt look like they did, at least in December my pay was again way down, at least I got paid but nothing like I should have. Would you advise me to go to an accountant and get things dealt with professionally. I have used a really good accountant in the past and would go to him, just don't want to have to unless necessary due to the fees.

Look at your tax credit cert for 2016 in your PAYE Anytime account. That will tell you how things should stand for 2016.

You do not need an accountant for this. All you have done is encountered issues at a bad time of year. Revenue stopped issuing 2015 tax credit certs in mid December.

Before requesting a P21 in 2016, you will need your P60 figures. Also as you had DSP payments in 2015, use My Enquiries to request Revenue check and update the taxable element of it for 2015 before you request the P21.

Avatar MIA

Don't think you'll need an accountant.

You can order a P21 from PAYE Anytime.

You'll need your P60.

whatthefurry

relax carry on wrote: »

Look at your tax credit cert for 2016 in your PAYE Anytime account. That will tell you how things should stand for 2016.

Thanks for this, I checked and the credits are allocated equally between us so at least I can rest assured on that one.

Thanks to all who took the time to reply, this thread has been very helpful for us. It's a very bad time of year to be so much down in pay but at least I am on the way to sorting it out.

namenotavailablE

Also: my Excel spreadsheet @ http://taxcalc.eu/monthlyss might help. It handles public sector calculations including pension deductions.