Tax Credits?

shroomdoom

Hello!

Are tax credit cumulative? Say if my tax credits are 3000 for a year and for 6 months I don't work, are my tax credits applied as 250 per month or 500?

My tax credits seem to suggest it's applied at the "250" a month rate but my payslips don't make sense if that's correct.

Just looking for some clarity.

relax carry on

shroomdoom wrote: »

Hello!

Are tax credit cumulative? Say if my tax credits are 3000 for a year and for 6 months I don't work, are my tax credits applied as 250 per month or 500?

My tax credits seem to suggest it's applied at the "250" a month rate but my payslips don't make sense if that's correct.

Just looking for some clarity.

Tax credits and standard rate band are allocated normally on a cumulative basis. Your payslip should tell you if you are on a normal cumulative basis of taxation. Standard tax credits are 3300 per year or 275 a month. Depending on what time of the year you start your 6 months of work, you may have a build up of tax credits before you start your employment or after you cease. Over the 12 months of the year it all evens out anyway by you requesting a review from Revenue.

shroomdoom

relax carry on wrote: »

Tax credits and standard rate band are allocated normally on a cumulative basis. Your payslip should tell you if you are on a normal cumulative basis of taxation. Standard tax credits are 3300 per year or 275 a month. Depending on what time of the year you start your 6 months of work, you may have a build up of tax credits before you start your employment or after you cease. Over the 12 months of the year it all evens out anyway by you requesting a review from Revenue.

So, say if my tax credit cert says 3400 and I started work in September, would any tax I pay be available for me to claim back once I have a P60 issues? Also, correct me if I'm wrong, but can I claim back USC if I earn under 13000 between September 2016 and January 2017?

Pete123456

shroomdoom wrote: »

So, say if my tax credit cert says 3400 and I started work in September, would any tax I pay be available for me to claim back once I have a P60 issues? Also, correct me if I'm wrong, but can I claim back USC if I earn under 13000 between September 2016 and January 2017?

Yes to the tax and the USC. just a request a p21 balancing statement once you get your p60 and if you're due tax back revenue will post a cheque. Or if you sign up to myaccount which is online, it's quicker and the money will be lodged to an account you choose

shroomdoom

Pete123456 wrote: »

Yes just a request a p21 balancing statement once you get your p60 and if you're due tax back revenue will post a cheque. Or if you sign up to myaccount which is inline, it's quicker and the money will be lodged to an account you choose

Great, thanks guys.

exaisle

shroomdoom wrote: »

Hello!

Are tax credit cumulative? Say if my tax credits are 3000 for a year and for 6 months I don't work, are my tax credits applied as 250 per month or 500?

My tax credits seem to suggest it's applied at the "250" a month rate but my payslips don't make sense if that's correct.

Just looking for some clarity.

It's likely that you're being taxed on a week1/month1 basis which means that you're only getting the tax credits appropriate to your pay frequency...so if you're paid monthly, you'll only get 1/12th of your annual tax credits for that month. Check your payslip to see if it mentions W1/M1

If that's the case, then your credits are NOT being applied cumulatively....but you WILL get them when you apply for a P21 next year.

shroomdoom

exaisle wrote: »

It's likely that you're being taxed on a week1/month1 basis which means that you're only getting the tax credits appropriate to your pay frequency...so if you're paid monthly, you'll only get 1/12th of your annual tax credits for that month. Check your payslip to see if it mentions W1/M1

If that's the case, then your credits are NOT being applied cumulatively....but you WILL get them when you apply for a P21 next year.

Thanks for the information guys, I did try to get the answer from revenue but they initially said it was cumulative and then said it was a fixed amount per week. I can't find the code you mentioned on my payslip, it just says my Tax Code and PRSI band.

Oh well, atleast it's a type of unwarranted savings scheme

exaisle

shroomdoom wrote: »

Thanks for the information guys, I did try to get the answer from revenue but they initially said it was cumulative and then said it was a fixed amount per week. I can't find the code you mentioned on my payslip, it just says my Tax Code and PRSI band.

Oh well, atleast it's a type of unwarranted savings scheme

If it's a set amount per week then it's a week 1 basis. Request a P21 on PAYE Anytime as soon as your 2016 income and tax details appear there.

pilly

Don't forget any social welfare you received during the year is taxable so that would count as income also. Sometimes that's why the tax office would leave you on a week 1 basis.