Taxback 2019 - Worked only part of the year, what am I entitled to?

Maniacle

Hi Everyone,
Looking for some advice. I have taken a six month leave of absence from work this year. Used the time to go and travel. I'll be back in work in November. My question is - obviously because I took off half the year to travel, my income has been slashed in half, however at the start of the year when I was working I was taxed as per usual, and I'm assuming it'll be the same for my November and December pay checks. Am I right in thinking that I'll be due a good amount of tax back? 
Let's say that my usual annual gross (non taxed) is about 50k. From the months of Jan to April, I would have been paying 20% plus the 40% on the additional income. At the end of this year my earnings will be in and around 25k ish. Am I right in thinking that I will be refunded half of the earnings that I paid 40% tax on? An oversimplification I know, but if anyone could steer me in the right direction, I'd be so thankful!

scott.robs123

I have the exact same situation now, and can't find the answer anywhere. Don't suppose you got to the bottom of it?

StringerBell

Simplest thing to do in those kind of situations is to give revenue a ring for advice tbh.

Request a balancing statement anyway at the year end and they will calculate for you if you are due a refund.

sonyvision

USC and TAX are calculated on a cumulative basis. At the start of the year (assuming your paid monthly) your tax credits would be 3300/12 months entitlement in month one. If your pay is unchanged your your tax and USC is correcrly deducted all year.

In this scenario when you stop working for 6 months your lets say in May... but return to work in November and receive a salary.

They take your total income YTD which is 6 months pay in total (because you travelled for June, July, August, September, October). Your credits applied is €3300/12months*11months. And a tax refund will be generate as the payroll system will calculated your have over paid taxes up compared to credits.

My advice to people travelling if they have worked is to leave Ireland in June and return to Ireland in Jan or Feb. If you are outside of Ireland for a total of 6months and 1 day in the financial calander year you can claim a full tax refund of anything paid!!

In your scenario you will get unused credits. Approc €1650, approx €500 from dropping %40 to %20. And maybe €50 more from dropping in USC rates aswell.

Be sure to registers with revenue your nor employer. Easy stuff

jimmy456

you get a full refund on all your tax paid if outside for 6 months? I always thought Irish sourced income will always be taxed in Ireland?

sonyvision

jimmy456 wrote: »

you get a full refund on all your tax paid if outside for 6 months? I always thought Irish sourced income will always be taxed in Ireland?

If you are outside of Ireland for 6 months in the financial year you can claim "not a tax residend" and request a refund. You need proof for this flights, travel times etc.

jimmy456

non resident doesn't mean tax exempt. Also you'd still be resident on the 280 day rule? you won't lose your residency if you leave for 6 months come back after 6 months and continue that cycle.

jimmy456

There is different rules for people who perform employment duties outside of Ireland. maybe this is what you are referring to?

Buck2London

As said above the worst case scenario is you request a balancing statement after year end and it gets sorted then.

What might be quicker is that if you're rejoining the same employer, there's a chance they would have kept you registered as an employee for the intervening period, you can check that by seeing if they've entered a leave date for your last payroll submission on my account. Your RPN (the info Revenue send your employer about you) would need to be done on the 'cumulative basis', this might not be the case if you were receiving a welfare payment or somthing.
Anyway, if you're still down as their employee and have a cumulative RPN, you could ask your employer to process you as a zero wage on the next payroll run, this would generate your tax refund. They're not obliged to do this so you'd have to ask them, but it shouldn't be a problem if the above 2 conditions are met.
Also, if your going to be making less than 13k this year you'll won't have to pay USC but your RPN probably will have a USC charge on it, it's a matter of ringing up Revenue and asking them to make your RPN USC exempt for this year if that's the case. That could be the difference between getting all your USC back or just a portion of it.
In any case a balancing statement after year end would sort all that out if you can wait until then.

ton ee

I am Portuguese citizen and worked in Ireland for 11 months last year.. will I get a full refund? Because I don't go back to Ireland anymore.

Any ideas?? Thank you