Tax Credits - Weekly

15MrC

I'm an agency worker, and get paid varying amounts each week depending on how much work I get.

However, I won't be earning over the 33,800 euro this year, so I should be tax free.
My employer divides my €3,025 tax credit weekly, so it works out at 58 euro tax credit a week, which I would normally be under, so I pay no tax.

This week, as an exception, my income was higher, and I ended up being taxed, at the difference between the 20% tax, and my weekly tax credit.

I'm just clarifying that this will be refunded at the end of the year when I request a P21, as my total yearly income will still be under 33,800? As in, I won't be penalised because my employer divides the credits weekly?

Thanks in advance.

relax carry on

15MrC wrote: »

I'm an agency worker, and get paid varying amounts each week depending on how much work I get.

However, I won't be earning over the 33,800 euro this year, so I should be tax free.
My employer divides my €3,025 tax credit weekly, so it works out at 58 euro tax credit a week, which I would normally be under, so I pay no tax.

This week, as an exception, my income was higher, and I ended up being taxed, at the difference between the 20% tax, and my weekly tax credit.

I'm just clarifying that this will be refunded at the end of the year when I request a P21, as my total yearly income will still be under 33,800? As in, I won't be penalised because my employer divides the credits weekly?

Thanks in advance.

33800 isnt a tax free threshold. There's no such thing. That's your standard rate band, is what you can earn taxed at the 20% rate. Your tax credits are the second part of the system. They are deducted from the tax you should pay to give you the tax you end up paying. In effect the normal yearly tax credits of 3300 mean you can earn 16500 without paying PAYE. USC and PRSI will be different.
Are you on a week one basis on your payslip or the normal cumulative basis?

15MrC

relax carry on wrote: »

33800 isnt a tax free threshold. There's no such thing. That's your standard rate band, is what you can earn taxed at the 20% rate. Your tax credits are the second part of the system. They are deducted from the tax you should pay to give you the tax you end up paying. In effect the normal yearly tax credits of 3300 mean you can earn 16500 without paying PAYE. USC and PRSI will be different.
Are you on a week one basis on your payslip or the normal cumulative basis?

Yes apologies, I had that mixed up when I typed it. I'll still be well under 16,500 euro also.

Yes sorry I seem to have missed that, I am on a Week One basis. Will the PAYE still be refunded once the year is up?

relax carry on

15MrC wrote: »

Yes apologies, I had that mixed up when I typed it. I'll still be well under 16,500 euro also.

Yes sorry I seem to have missed that, I am on a Week One basis. Will the PAYE still be refunded once the year is up?

You will have to claim it. It's not automatic. However why not just get yourself into the normal cumulative basis where you will get it refunded in your wages.

15MrC

relax carry on wrote: »

You will have to claim it. It's not automatic. However why not just get yourself into the normal cumulative basis where you will get it refunded in your wages.

Yep I'm aware of that wrt P21 etc. I was just checking I was not losing that tax I am paying. Thank you.

I'm currently between two temporary employments, at different parts of the year, so I can't provide Revenue with a P45/what I've earned this year so far, as I haven't earned anything with the other company yet.

I'll try Revenue, but for now, Week 1 basis is fine.

Thanks for your help

CiniO

relax carry on wrote: »

You will have to claim it. It's not automatic. However why not just get yourself into the normal cumulative basis where you will get it refunded in your wages.

How do you do it?
Can you just ask revenue to switch you to cumulative basis, or is decision up to them to keep week one basis?

relax carry on

CiniO wrote: »

How do you do it?
Can you just ask revenue to switch you to cumulative basis, or is decision up to them to keep week one basis?

You ask Revenue. They put you on a week one because they are either missing some information or because it is protecting you from an underpayment being collected all in one go.