Tax Credit when returning to Ireland mid year

Fake Tales

I returned to Ireland late June 2017, this makes me a tax resident in Ireland... just. My understanding is that I will receive my full tax credits for the year and so I should get a nice return.

For example if I am earning 50k a year but only work 6 months I'll pay the same PAYE as someone earning 25k. Is this understanding correct?

Currently I am being taxed as if I had been here since January. Is there a way of adjusting this?

I am earning a small amount in Canada in interest and mutual funds in pension schemes and tax free accounts. Do I need to pay tax on that?

Are there any tax benefits for PRSI and USC?

Fake Tales

Can anyone advise?

Tow

You will get a years worth of Income Tax and USC allowances. But PRSI is calculated on a Weekly/Monthly basis. This is a feature of our tax system Revenue want to remove/reduce, but there are no pains yet.

Currently I am being taxed as if I had been here since January. Is there a way of adjusting this

Ring Revenue an request to be put on 'Normal Basis', assuming you are on Week1.

I am earning a small amount in Canada in interest and mutual funds in pension schemes and tax free accounts. Do I need to pay tax on that?

It all should to be declared to Revenue... The tax, if any, depends on many factors.

exaisle

Fake Tales wrote: »

I returned to Ireland late June 2017, this makes me a tax resident in Ireland... just. My understanding is that I will receive my full tax credits for the year and so I should get a nice return.

For example if I am earning 50k a year but only work 6 months I'll pay the same PAYE as someone earning 25k. Is this understanding correct?

Currently I am being taxed as if I had been here since January. Is there a way of adjusting this?

I am earning a small amount in Canada in interest and mutual funds in pension schemes and tax free accounts. Do I need to pay tax on that?

Are there any tax benefits for PRSI and USC?

If you're earning 50k a year but only work for 6 months you'll earn 25k so you'll pay the same as someone earning 25k. (I'm hoping you're not in a mathematics related job....)

Why do you want to adjust your credits?

You'll need to declare the interest etc on your Irish tax return, but you'll get credit for tax paid in Canada.

What do you mean by "Are there any tax benefits for PRSI and USC?" I'm not sure what you mean by "tax benefits"? There's no benefit for USC, but paying PRSI as an A1 contributor entitles you to unemployment benefit, should you become unemployed. Check out the Welfare website here:
http://www.welfare.ie/en/Pages/What-social-welfare-benefits-does-my-PRSI-payment-cover.aspx

Mrs OBumble

exaisle wrote: »

Why do you want to adjust your credits?

Presumably s/he has been put on a Week 1 basis, so is being taxed as though earning here since January. This would likely have been done if Revenue didn't know what you were doing earlier in the year.

The way to get the refund is to apply for a balancing statement next February, after you've received your P60 for the year. However as stated you do need to declare overseas earnings and tax ... I'm not sure what the mechanism for doing this is now.

jaffusmax

You can claim split year coming if you were non resident previously to now being tax resident this year e.g. being in the state for at least 183 days. This would mean you are in receipt of a full years worth of credits on a cumulative basis. Best way to check if you are cumulative or week 1 is to just ring up revenue.

Fake Tales

Thanks for replies.

Yes I am on Week 1 tax. It seems to make sense to apply for Split Year Treatment but I had someone advised me not to become a tax resident (over 183 days). I'm very close so a few days away would keep me under. Any idea why?

Good to know about USC too.

Would foreign pensions be treated differently that foreign investments?

CIARAN_BOYLE

If you are Irish resident and domiciled Ireland can tax you on your world wide earnings during the year. Do you hve significant earnings from the part of the year youbwere in Canada? If so refer to the relevant double taxation agreement.