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Holiday pay

  • 26-06-2017 11:05am
    #1
    barry181091
    Registered Users, Registered Users 2 Posts: 1,628 ✭✭✭


    Hey guys,

    I just have a quick question about being paid for holidays when you leave a job. If I get paid for X amount of days at the end of a job, it will be taxed at the high rate. Obviously if I just take the holidays as holidays, I will have more spread out pay cheques. Is it all the same thing at the end of the year when a tax return is done? Just confusing that if I get paid for the holidays alone I will lose money. Something tells me it all works out at the same at the end of the year.


Comments

  • #2
    allthedoyles
    Registered Users, Registered Users 2 Posts: 6,893 ✭✭✭allthedoyles


    Each week you are entitled to a weekly tax credit .
    So if you finish work this Friday 30th and paid 2 weeks holidays , then payroll should allow you two extra tax credits to cover the holidays .
    But your date of leaving on P45 should appear as 14th July then .


  • #3
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 26,294 ✭✭✭✭Mrs OBumble


    allthedoyles wrote: »
    Each week you are entitled to a weekly tax credit .
    So if you finish work this Friday 30th and paid 2 weeks holidays , then payroll should allow you two extra tax credits to cover the holidays .
    But your date of leaving on P45 should appear as 14th July then .

    Smart payroll typically don't do that, because you would accrue more annual leave during the final two weeks. They want your employment to end ASAP.

    OP, if you get another job this financial year, then it will all even out once you get tax credits applied so that job. If you don't, then you will have to wait until next February and ask Revenue for a balancing statement. (Thinking ..the did have a scheme to repay you the overpaid tax sooner than that, I'm not sure if it's still operating.)


  • #4
    barry181091
    Registered Users, Registered Users 2 Posts: 1,628 ✭✭✭barry181091


    Thanks guys! I thought it would all even out eventually alright.


  • #5
    scheister
    Registered Users, Registered Users 2 Posts: 1,310 ✭✭✭scheister


    allthedoyles wrote: »
    Each week you are entitled to a weekly tax credit .
    So if you finish work this Friday 30th and paid 2 weeks holidays , then payroll should allow you two extra tax credits to cover the holidays .
    But your date of leaving on P45 should appear as 14th July then .

    One issue with this idea is what if i start a new job on July 3rd. unless the credits are sorted out by payroll time. Emergency tax will assume I have credits for first two weeks in July and will be clawed back from you.


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