Haven't paid tax in 3 months since starting new job

Ally Dick

Hi. I am confused. I mentioned this question before but I am lost now. I didn't work in 2016 till June 28th. I am 12 weeks into a new job. I get paid fortnightly but I haven't yet paid any tax.
Has anyone any idea why I still am not paying tax ? I would have thought that my tax credits would have run out by now !

My fortnightly pay is €2115.40. My fortnightly tax credit is €176.39. My STD cut off is €1576.12.

By my reckoning, I was 26 weeks without work. That should be a total tax credit of €176.39 x 13 = €2,289.56.

I have now received total pay of roughly €12k and paid a small amount of USC and PRSI, but no tax !!!!

Can this be correct ?

barneystinson

Ally Dick wrote: »

Hi. I am confused. I mentioned this question before but I am lost now. I didn't work in 2016 till June 28th. I am 12 weeks into a new job. I get paid fortnightly but I haven't yet paid any tax.
Has anyone any idea why I still am not paying tax ? I would have thought that my tax credits would have run out by now !

My fortnightly pay is €2115.40. My fortnightly tax credit is €176.39. My STD cut off is €1576.12.

By my reckoning, I was 26 weeks without work. That should be a total tax credit of €176.39 x 13 = €2,289.56.

I have now received total pay of roughly €12k and paid a small amount of USC and PRSI, but no tax !!!!

Can this be correct ?

Not trying to be smart but if you have access to a payslip you should be able to see what the story is from it.

If your taxable gross @ 20% is more than your tax credit YTD then you need to ask whoever is doing the payroll.

Ally Dick

I worked out I should pay tax of roughly €500 a fortnight and I have been in work for 12 weeks so that's around 3k. Meanwhile my accumulated tax credits are around 2k...so I should have used them up a couple of weeks ago by my reckoning...or am I wrong

L'prof

Ally Dick wrote: »

I worked out I should pay tax of roughly €500 a fortnight and I have been in work for 12 weeks so that's around 3k. Meanwhile my accumulated tax credits are around 2k...so I should have used them up a couple of weeks ago by my reckoning...or am I wrong

There's your answer so. If you reckon your total taxable for the year is €3k and your tax credits year to date add up to €2k then you should have paid €1k in tax. I'd contact someone in payroll or/and the tax office. This error will have to be rectified, they could even try to take it all at from one pay term which would be a nasty surprise. Maybe see if you could spread it over a month or 2?

barneystinson

Ally Dick wrote: »

I worked out I should pay tax of roughly €500 a fortnight and I have been in work for 12 weeks so that's around 3k. Meanwhile my accumulated tax credits are around 2k...so I should have used them up a couple of weeks ago by my reckoning...or am I wrong

Your tax credits are 88pw and we're now about 37 weeks through the year, so that's slightly over 3k - I think you're only taking your accumulated credits up to June into consideration in your 2k figure - so you should probably start paying tax in the next few weeks, yaaaaaaaay!

nhunter100

Any reason why you didn't contact Revenue to make sure all is correct?

barneystinson

nhunter100 wrote: »

Any reason why you didn't contact Revenue to make sure all is correct?

Because it's a payroll issue, it's up to the employer to correctly operate the PAYE system. He doesn't have an issue with his tax credits etc, he just doesn't understand why he hasn't started paying tax yet.

nhunter100

barneystinson wrote:

Because it's a payroll issue, it's up to the employer to correctly operate the PAYE system. He doesn't have an issue with his tax credits etc, he just doesn't understand why he hasn't started paying tax yet.

Maybe a payroll issue but if the correct amount of tax has not been deducted the op still has to pay it. Revenue is but a phone call away and fairly user friendly.

L'prof

barneystinson wrote: »

Your tax credits are 88pw and we're now about 37 weeks through the year, so that's slightly over 3k - I think you're only taking your accumulated credits up to June into consideration in your 2k figure - so you should probably start paying tax in the next few weeks, yaaaaaaaay!

I wish my tax credits were that high!!!

barneystinson

nhunter100 wrote: »

Maybe a payroll issue but if the correct amount of tax has not been deducted the op still has to pay it. Revenue is but a phone call away and fairly user friendly.

That's not what they are there for - what help do you think the poor unfortunate on the other end of the phone can give him, they only have the same information that he does...

goldenhoarde

Sounds about right as you started late in the year so you have built up tax credits which keep you from paying tax

Based on the data you will be on roughly 27500 for the 6 months which will keep you under SRCOP for this year so you will pay tax @20%

You have a tax credit of 3300 for the year and @20% you should pay 2200 in tax for this 6 months (27500*20% - 3300 = 2200)

Until the accumulated tax credits are less than the tax due you won't pay tax so bear this in mind

Get your payslip and look for the cumulative details section and you should see this.


Also get onto Payroll and flag it with them, they should be the first port of call as they have all your details and should be able to explain it to you

Basically you should start paying some tax soon.

nhunter100

barneystinson wrote:

That's not what they are there for - what help do you think the poor unfortunate on the other end of the phone can give him, they only have the same information that he does...

Revenue can tell the OP if the correct amount of tax has been deducted in respect of his employment. I have dealt with Revenue on numerous occasions and found them very helpful and knowledgeable, more so than random opinions on the Internet, buts that'd just me.

relax carry on

nhunter100 wrote: »

Revenue can tell the OP if the correct amount of tax has been deducted in respect of his employment. I have dealt with Revenue on numerous occasions and found them very helpful and knowledgeable, more so than random opinions on the Internet, buts that'd just me.

Revenue can't tell you live information on your tax paid in an active employment in an active tax year. Only the company's payroll has that information. Revenue finds out about your tax paid in employment when the employer files their P35 the following year.

Ally Dick

relax carry on wrote: »

Revenue can't tell you live information on your tax paid in an active employment in an active tax year. Only the company's payroll has that information. Revenue finds out about your tax paid in employment when the employer files their P35 the following year.

I was unemployed for 1.5 years. I assume the Revenue had to tell the employer on which tax week to start me on? I rang Revenue and they say I am still under the threshold. Thanks for all the help

Ally Dick

nhunter100 wrote: »

Any reason why you didn't contact Revenue to make sure all is correct?

Amateur sleuthing to be honest! Trying to figure it out myself. I got paid yesterday and I was surprised to see that I still wasn't paying tax I thought that this would be when I would have hit the tax credits YTD figure...but as another poster has said, I had forgotten about the 12 weeks since where I also had €88 per week tax credits to include. I got onto Revenue earlier and they were very helpful. I am paid through an agency and they were friendly too. As I say, my first instinct was to get out the calculator first, and then to query it with the fine people of Boards ! Was reluctant to ask the agency in case they thought I was accusing them of incompetence !