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Tax / tax credits /week 1 status on Maternity Leave

  • 20-02-2018 12:57pm
    #1
    Registered Users Posts: 120 ✭✭


    I went on maternity leave in mid December last '17.

    Last week I notified Revenue I was on maternity leave as I could see from my pay slips (Dept of Education) that they were deducting the maternity benefit (as I received that by cheque directly fro Dept of Social Protection) . This dedication of maternity benefit reduced my gross wage for tax purposes. I could see my gross wage for tax purposes had fallen.
    Im of the opinion maternity benefit is taxable.

    From what I gather, to compensate for the fact that maternity leave is taxable for PAYE purposes but not USC or PRSI, they reduce your tax cretits and tax bands.

    I received a new Tax credits certificate (TCC) on Monday, showing a reduction in tax credits of 12,220.
    They also have at the top of the TCC that it is from 1 Jan 2018- 31 Dec 2018 and is on a week 1 / month 1 basis)

    My question is does this mean, Ill be paying too much tax for the entire year ( as credits have been reduced)?
    My maternity leave ends in June.

    I had heard of people losing the first few pay slips to tax as they'd underpaid which is an awful shock to the system but at the same time....I dont want to be overpaying tax and then waiting for 2018s P60 before I can claim tax back.
    I just want to pay the right amount of tax in stages.

    TIA


Comments

  • Registered Users Posts: 889 ✭✭✭Ciaran


    acb wrote: »
    I went on maternity leave in mid December last '17.

    Last week I notified Revenue I was on maternity leave as I could see from my pay slips (Dept of Education) that they were deducting the maternity benefit (as I received that by cheque directly fro Dept of Social Protection) . This dedication of maternity benefit reduced my gross wage for tax purposes. I could see my gross wage for tax purposes had fallen.
    Im of the opinion maternity benefit is taxable.

    From what I gather, to compensate for the fact that maternity leave is taxable for PAYE purposes but not USC or PRSI, they reduce your tax cretits and tax bands.

    I received a new Tax credits certificate (TCC) on Monday, showing a reduction in tax credits of 12,220.
    They also have at the top of the TCC that it is from 1 Jan 2018- 31 Dec 2018 and is on a week 1 / month 1 basis)

    My question is does this mean, Ill be paying too much tax for the entire year ( as credits have been reduced)?
    My maternity leave ends in June.

    I had heard of people losing the first few pay slips to tax as they'd underpaid which is an awful shock to the system but at the same time....I dont want to be overpaying tax and then waiting for 2018s P60 before I can claim tax back.
    I just want to pay the right amount of tax in stages.

    TIA
    Once the maternity benefit finishes, you'll get a new tax credit cert with no reduction in tax credits, on a week 1 basis and be taxed as normal on your wages. Example 3 here seems to match your situation and shows how it works in detail.

    There's often a mismatch of a couple of weeks in synchronising the information between Social Welfare, Revenue and employers so your tax paid at the end of the year could be off by up to a couple of hundred euros. That will be dealt with at the end of the year.


  • Registered Users Posts: 2 iorgu


    good evening, my name is Iorgu Ciprian, please give me an answer too, on January 14th, I made a loan and I didn't receive any answer, please tell me something



  • Registered Users Posts: 2 iorgu


    good evening, my name is Iorgu Ciprian, please give me an answer too, on January 14th, I made a loan and I didn't receive any answer, please tell me something



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