Financial advice for teachers

Geuze

Teach30 wrote: »

Ok so on my payslip it says on one line
Tax credit 126.92 and cut off point is 1357.69 and on the built underneath it’s
Tax credit 1650 and cut off point is 17650.00

Tax return is foreign to me..

Please note that thousands of teachers do tax returns each year.

126.92 * 26 = 3300

The tax credits are correct, except you are missing the third one, the flat-rate expenses tax relief.

Teach30

Geuze wrote: »

Please note that thousands of teachers do tax returns each year.

126.92 * 26 = 3300

The tax credits are correct, except you are missing the third one, the flat-rate expenses tax relief.

Ok so when revenue post me my log in details I’ll go do that. Can’t say I’ve heard teachers talk about doing tax returns I thought that as for self employed people.
Once I log in will it be straightforward? Also where did u get the x 26?
Sorry for all the questions.

rainbowtrout

Teach30 wrote: »

Ok so when revenue post me my log in details I’ll go do that. Can’t say I’ve heard teachers talk about doing tax returns I thought that as for self employed people.
Once I log in will it be straightforward? Also where did u get the x 26?
Sorry for all the questions.

You get paid 26 times per year. Your total tax credit is divided by 26 to show what your fortnightly tax credit is.

Some teachers would have work on the side so would do a tax return. Also the revenue pick people at random and get them to complete a tax return, even if they are PAYE all the way. It often happens if you are in receipt of some sort of tax break. I live in the north west and got Section 23 relief when I bought my house and for years after that got the form to do the tax return each year when I had it.

I also do a bit of work that is classed as self employed, so I have an accountant to do that end of things for me each year.

Millem

You should request a balancing statement if you have any medical expenses. You get 20% back.

am_zarathustra

Teach30 wrote: »

Hi thanks yes I’m full time.
Total earnings is 2310.19 and yes paid fortnightly.
Net pay is 1472.47

So your gross pay is 2310.19 x 26 as you are paid every 2 weeks. This means your total gross pay is 60,064.94

Then take away allowances, I assume degree and teaching diploma so 1236 and 4918 for a total of 6154.

60,064.94 - 6154 = 53, 910.94

so increments you are closest to are

13 €52,720
14 €54,584

Do you do S and S? You are definitely one of these anyway, either 13 or 14.

Geuze

Teach30 wrote: »

Ok so when revenue post me my log in details I’ll go do that. Can’t say I’ve heard teachers talk about doing tax returns I thought that as for self employed people.
Once I log in will it be straightforward? Also where did u get the x 26?
Sorry for all the questions.

I think teachers are paid fortnightly? I'm sure they are.

Therefore x 26 to get annual figures.



I have helped many teachers do tax returns.

I do tax returns for a relation who is a teacher each year.

People don't tend to talk about it.



Anybody who has medical expenses must do a tax return to get tax relief.

am_zarathustra

Teach30 wrote: »

Ok so when revenue post me my log in details I’ll go do that. Can’t say I’ve heard teachers talk about doing tax returns I thought that as for self employed people.
Once I log in will it be straightforward? Also where did u get the x 26?
Sorry for all the questions.

I've gone through tax and payslips with loads of teachers in the school, Ive looked through their taxes and explained parts to them. It's completely normal. I know a shocking amount about some of the staff finances.

It's grand to ask, not asking at the start just means you put it off and it's always important to know where you stand.

Tax and pay are down to you. I've seen people paid 10 grand over what they should have been and they've had to pay it back.

Teach30

am_zarathustra wrote: »

So your gross pay is 2310.19 x 26 as you are paid every 2 weeks. This means your total gross pay is 60,064.94

Then take away allowances, I assume degree and teaching diploma so 1236 and 4918 for a total of 6154.

60,064.94 - 6154 = 53, 910.94

so increments you are closest to are

13 €52,720
14 €54,584

Do you do S and S? You are definitely one of these anyway, either 13 or 14.

Thanks for that, I’ve sent the financial section an email and can only but wait and see what they say to me.
At least everything else is correct. I’ll do the expenses thing too.

I asked my family and the accountant does all this for them they’ve never used into revenue online themselves.

I might look at getting an accountant down the line but will do it myself for now.

Would be great to go from point 12 on scale to 14 if it’s wrong.

rainbowtrout

am_zarathustra wrote: »

So your gross pay is 2310.19 x 26 as you are paid every 2 weeks. This means your total gross pay is 60,064.94

Then take away allowances, I assume degree and teaching diploma so 1236 and 4918 for a total of 6154.

60,064.94 - 6154 = 53, 910.94

so increments you are closest to are

13 €52,720
14 €54,584

Do you do S and S? You are definitely one of these anyway, either 13 or 14.

It looks like Hons Degree, Pass Dip and Point 14.

4198 + 591 + 54584 = 60093

Allowing for rounding at different times of the year that comes within €30

Millem

Multiply by 26.09 not 26.

Teach30

Millem wrote: »

You should request a balancing statement if you have any medical expenses. You get 20% back.

I thankfully dont have medical expenses but will add this to my list of things to remember.

Found 3 cheques for travel expenses from inservices today too that are well out of date by now, I’m So bad at all this..!

rainbowtrout

Teach30 wrote: »

I thankfully dont have medical expenses but will add this to my list of things to remember.

Found 3 cheques for travel expenses from inservices today too that are well out of date by now, I’m So bad at all this..!

Even going to the doctor for a check up and paying €50 is eligible. It’s only a tenner back but it all adds up.

Geuze

Teach30 wrote: »

I might look at getting an accountant down the line but will do it myself for now.

100% no need for this.

Cost way too much.


I do my own tax return in 30 mins.

Would you pay several hundred for 30 mins work?


I do tax returns for teachers with five or six incomes in maybe an hour tops.

(pension + wages + grinds income + ARF, plus medical expenses, etc.)

Teach30

Geuze wrote: »

100% no need for this.

Cost way too much.


I do my own tax return in 30 mins.

Would you pay several hundred for 30 mins work?


I do tax returns for teachers with five or six incomes in maybe an hour tops.

(pension + wages + grinds income + ARF, plus medical expenses, etc.)

When your as unsure as I am about all of this yes I probably would pay. My fiancé suggested an accountant too he has never used revenue online either for taxes etc. He was no help when I asked!

Would be handy to have a friend like you who would do it for me I can see why people ask you as you find it so easy!

On the getting money back from doctor dentist etc.. last time I was in the dentist he asked me for PPS number and it ended up only costing €20. Is this something to do with claiming it? Thanks never though to ask the secretary. He just used the number.

rainbowtrout

Teach30 wrote: »

When your as unsure as I am about all of this yes I probably would pay. My fiancé suggested an accountant too he has never used revenue online either for taxes etc. He was no help when I asked!

Would be handy to have a friend like you who would do it for me I can see why people ask you as you find it so easy!

On the getting money back from doctor dentist etc.. last time I was in the dentist he asked me for PPS number and it ended up only costing €20. Is this something to do with claiming it? Thanks never though to ask the secretary. He just used the number.

Your PRSI entitles to you to certain free treatments, say once a year. I think with the dentist it is a clean and polish, so he submits a claim to revenue and they reimburse him against your PRSI number, and you just paid him the balance for whatever else was done. Because that claim has been made you can't go back and get the same treatment within the timeframe allowed.

You are also entitled to a free eye test and an allowance towards glasses every two years. I got my eyes tested as I needed glasses for the first time two years ago and had a check up only about two weeks ago for free, again paid for by PRSI.

https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/disability_and_illness/treatment_benefit_scheme.html

mirrorwall14

Can I jump in and check my understanding?

I’m ETB though did some DES work. Does this affect pension?

I’m teaching since sept 2011 in ETB. Before that was a mix of mostly private with some DES hours for two years. It will not count as a year pension I’m sure.

I will be 66 in Sept 2051 for forty years of service. I know I can’t retire early. However I think I go at 65? And I think I can buy back that year to have full pension at 65? Who deals with ETB pensions?

And I don’t understand the pension age changes. If I have 40 years done (using buy back and Actual service) at 65 do I get a pension until I’m 68? Or how do I survive?

Thanks

rainbowtrout

mirrorwall14 wrote: »

Can I jump in and check my understanding?

I’m ETB though did some DES work. Does this affect pension?

I’m teaching since sept 2011 in ETB. Before that was a mix of mostly private with some DES hours for two years. It will not count as a year pension I’m sure.

I will be 66 in Sept 2051 for forty years of service. I know I can’t retire early. However I think I go at 65? And I think I can buy back that year to have full pension at 65? Who deals with ETB pensions?

And I don’t understand the pension age changes. If I have 40 years done (using buy back and Actual service) at 65 do I get a pension until I’m 68? Or how do I survive?

Thanks

I would say first of all check if your hours in DES prior to 2011 have been included in your years of service. ETB should be able to tell you that. If they haven't contact DES for a statement of service which you can give to your ETB.

Assuming for the moment that it's not included and you have 39 years of service at 65, you would be entitled to buy back one year. You would contact payroll in your ETB if you want to do that. You might also find the cost of buying back a year is not worth the value of what it would add to the pension. Worth sitting down and doing a few calculations.

You will be eligible for your teaching pension at 65. Technically you are only entitled to the teaching part of it not the state part of it at that point, so for the example I've done above if your final pension was 30k, you would be entitled to 18k at 65 and state part at 68. However teachers can apply for what is known as the supplementary pension to bridge that gap until they are eligible for state pension. So it kind of works out the same. You would also be eligible for your lump sum.

https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/Teaching-Staff/Supplementary-Pensions/FAQs.html

StackSteevens

Teach30 wrote: »

Thanks for that, I’ve sent the financial section an email and can only but wait and see what they say to me.

At least everything else is correct. I’ll do the expenses thing too.

I asked my family and the accountant does all this for them they’ve never used into revenue online themselves.

I might look at getting an accountant down the line but will do it myself for now.

Would be great to go from point 12 on scale to 14 if it’s wrong.

Try to be positive about it! And bear in mind that since you had the brains to get a degree and a H Dip then you definitely have the brains to manage your own salary and tax affairs! It's a cliché, but it really isn't rocket science.

Furthermore, if you master the topic before your fiancé does, then after you're married, you can transfer some of his tax credits over to you and he won't even know!!!

amacca

amacca wrote: »

I had no idea it was cheaper the earlier you do it......is there a formula or something available

Not hijacking but still curious about my own question from earlier in the thread, i think a poster suggested it was cheaper to buy back notional service the earlier you do it.....is this the case, to me it would be something you would consider if it made sense coming to the end and you would be in a better position to weigh up proscand cons then depending on your individual situation......but is it actually cheaper if buy back early

am_zarathustra

amacca wrote: »

Not hijacking but still curious about my own question from earlier in the thread, i think a poster suggested it was cheaper to buy back notional service the earlier you do it.....is this the case, to me it would be something you would consider if it made sense coming to the end and you would be in a better position to weigh up proscand cons then depending on your individual situation......but is it actually cheaper if buy back early

Standard pension practice means he closer you are to retirement, the less time your contribution has to accrue interest therefore the less value it has. The maths is amortization I assume, so 200 euros in your pension pot when your 25 is worth a nice amount by the time you are 65/68 but if you put 200eu in when you are 60 it won't be worth as much.

https://www.pensionsauthority.ie/en/employers/checklists_and_guides/purchase_of_notional_service_and_avcs.pdf


The calculations are very specific to individuals but the department will cost it for you. You can pay in a lump sum or in smaller amounts over time

StackSteevens

amacca wrote: »

.but is it actually cheaper if buy back early

It certainly seems cheaper - because the earlier you start, the smaller the periodic deductions from salary will be!


Note: If you are in the Single Pension Scheme ( employed after 1st Jan 2013) you cannot purchase notional service.

And see this page for more info relating to teachers.

https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/Teaching-Staff/Notional-Service-Scheme/

am_zarathustra

https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/notional-service-purchase-scheme-for-teachers-general-information-nsq10-.pdf

It's worth having a look at this. The tables they mention are here http://www.cspensions.gov.ie/

Basically buying a year is dependent on your age and the number of years you want to apply for. The actuarial tables are used for this. You can ask the department too do this any time for free and they will send you the estimate. I'll have to buy a couple of years back at some point and plan on doing it as soon as I can (hoping to buy a house in the next few months.....so after that)