Is it normal to be taxed more than 41% on my earnings in Ireland?

armabelle

Hi there. I have just moved to Ireland as I got a job offer here from a multinational company. I have just discovered that I will be taxed over 41% of my income because I don't have a pps number and was just wondering if this has happened to somebody else. I have started the application to obtain the number but it may be a while before I receive it and feel somewhat duped by my company for not telling me about this before starting the job. I practically arrived and began work right away and with my much needed pay date approaching I will be forced to lose half my income or even more to tax. Dublin is such an expensive city that this tax burden is not something I can bare and will not be able to cover my expenses. Is a company not supposed to inform you about this coming in from another country? Has anybody else been burnt this way?

thanks for any feedback in advance

brightspark

Sounds like you are paying what is commonly known here as emergency or week one tax.

When you get the paperwork sorted out you will be refunded.

Some info here

http://www.revenue.ie/en/tax/it/who-pays.html

A calculator here

http://www.pwc.ie/campaigns/budget/irish-budget-2015-2016/2016-calculator.html

relax carry on

armabelle wrote: »

Hi there. I have just moved to Ireland as I got a job offer here from a multinational company. I have just discovered that I will be taxed over 41% of my income because I don't have a pps number and was just wondering if this has happened to somebody else. I have started the application to obtain the number but it may be a while before I receive it and feel somewhat duped by my company for not telling me about this before starting the job. I practically arrived and began work right away and with my much needed pay date approaching I will be forced to lose half my income or even more to tax. Dublin is such an expensive city that this tax burden is not something I can bare and will not be able to cover my expenses. Is a company not supposed to inform you about this coming in from another country? Has anybody else been burnt this way?

thanks for any feedback in advance

You are being emergency taxed. It's part of the taxation system here that makes employees contact Revenue to regularise their taxation position. Once it's sorted and you are being taxed correctly, any overpayment in tax will be refunded through your wages. Since you are new to the system, you may wish to read up a bit.

http://www.revenue.ie/en/personal/faqs/tax-credits-emergency-tax.html


http://www.revenue.ie/en/personal/faqs/starting-work-tax.html

Avatar MIA

I'll be kind and simply say it's up to every person to ensure their tax affairs are maintained.

Your employer will operate the PAYE tax system on your behalf.

When registering you they should have asked for your PPS number - I'd be hugely surprised if this wasn't part of a multinational's set up procedure.

spuddy

Avatar MIA wrote: »

....When registering you they should have asked for your PPS number - I'd be hugely surprised if this wasn't part of a multinational's set up procedure.

I think the point here is that the OP hasn't got a PPS yet. Having worked in other countries, I can sympathise here, and understand that this person may not have expected an emergency tax situation.

To the OP, as others have said, this tax is fully refundable. Get your PPS and inform your employer. Best of luck with the new job and new life here.

Avatar MIA

spuddy wrote: »

I think the point here is that the OP hasn't got a PPS yet.

You're right, but they have not been duped by the company. The education system perhaps, but not the company.

cromelex

I would say that the company should have been kind enough to advise you, through their HR.
I know mine did (I moved just 2 weeks ago).

armabelle

Thanks for all the replies here. I am so glad to read that the "emergency tax" will be refunded. This is a great weight off my shoulders. I still feel disappointed that I was not informed about it in some way by my company. This is obviously an Irish thing because I have worked for the same company in two other countries and this has never happened to me.

armabelle

cromelex wrote: »

I would say that the company should have been kind enough to advise you, through their HR.
I know mine did (I moved just 2 weeks ago).

Hey thanks. They did advise me but only half way through my second week working. I then set up an appointment for it but it will likely be weeks or even a month before I get it so that means this month I will be taxed at this high rate. You are lucky to have been informed beforehand. So how did you go about it? Did you arrive here first, get the number then begin working? Or could you apply before coming?

cromelex

armabelle wrote: »

Hey thanks. They did advise me but only half way through my second week working. I then set up an appointment for it but it will likely be weeks or even a month before I get it so that means this month I will be taxed at this high rate. You are lucky to have been informed beforehand. So how did you go about it? Did you arrive here first, get the number then begin working? Or could you apply before coming?

You need to have a proof of address, ie to live in Ireland before applying.

I've moved, started working on my second week here, and only had the appointment on the end of that second week (that's last Friday).

I'm currently waiting to receive the PPS number (which is sent by letter).