New Job- Low Tax

paddythere

I am quite ignorant to the tax system in this country and have never payed much attention to it so I am a little confused with my current situation. I was on Jobseekers allowance until March this year when I found full time work. I earn around 700 euro a week before tax. I am only being taxed about 35-40 quid a week. I was asking friends about this and some said it was probably a grace period that would last a month but it is nearly 3 months now and it hasn't changed. The other guys who started in the job at the same time as me had been on PUP and are getting hammered on the tax each week. We all gave our employer our pps no. upon starting so all revenue issues were taken care of by them.

My question is: why am I paying so little tax and if there is some kind of mistake here will I have to pay money back?

Thanks

barneystinson

paddythere wrote: »

I am quite ignorant to the tax system in this country and have never payed much attention to it so I am a little confused with my current situation. I was on Jobseekers allowance until March this year when I found full time work. I earn around 700 euro a week before tax. I am only being taxed about 35-40 quid a week. I was asking friends about this and some said it was probably a grace period that would last a month but it is nearly 3 months now and it hasn't changed. The other guys who started in the job at the same time as me had been on PUP and are getting hammered on the tax each week. We all gave our employer our pps no. upon starting so all revenue issues were taken care of by them.

My question is: why am I paying so little tax and if there is some kind of mistake here will I have to pay money back?

Thanks

If you were on allowance (means tested and not based on your PRSI contributions) rather than Benefit (not means tested, based on PRSI contributions), then that's probably right.

Jobseekers allowance is not taxable, so you hadn't used up any of your tax credits for the year when you started the job. The PUP is taxable, so the others may have had their credits reduced to take account of this.

Geuze

Check your tax credits on your payslip.

Check your SRCOP on your payslip.

namenotavailablE

My spreadsheet shows the following for a 'normal' week where you earn €700. It's possible that if you weren't working for an earlier part of the year that there are some unused tax credits and cutoff-point which help lower your deductions :



Spreadsheet link (only works in Excel as it uses macros): http://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm

Yeh I think this will keep going until you use up all tax credits. You are probably only getting taxed with PRSI.