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Tax in first year of employment?

  • 25-08-2005 11:20am
    #1
    homerjk
    Registered Users, Registered Users 2 Posts: 271 ✭✭


    Hi,

    I recently finished college in may and started work in june. I dont know where i heard it but I always thought that for your first job if you started around the middle of the year you wouldnt start paying tax until the start of the following year which would be january 06 for me?

    I checked out the sites in the sticky post above but i could see no reference to it..

    have I been imagining this all along? :( I ve seriously budgeted bad if i have...

    Thanks
    J


Comments

  • #2
    petes
    Registered Users, Registered Users 2 Posts: 8,382 ✭✭✭petes


    You've been imagining it. If its your first job you will be on emergency tax for the first wee bit until you get your credits and allowances sorted out. When these are sorted any tax you have overpaid while on emergency tax will be refunded(and not too promptly either).

    Link :http://www.revenue.ie/services/ind_work1.htm
    http://www.revenue.ie/services/ind_work2.htm
    http://www.revenue.ie/wnew/emer_t.htm

    Hope that helps.


  • #3
    Crumbs
    Registered Users, Registered Users 2 Posts: 1,080 ✭✭✭Crumbs


    Even though you will have been working for just 7 months of this year, you are still allocated a cut-off point and tax credits for a full calender year, which effectively means that you'll have nearly two months tax credits to cover each month of pay. This might be enough to mean you won't pay any PAYE. Familiarise yourself with the "cumulative basis" of PAYE if you need to understand this more.

    However, PRSI doesn't quite work that way, so you'll probably be taxed for that.

    Things also depend on how good your payroll department are. They should be taking into account that you have unused credits for the first five months but if they aren't, you can ask them about it, ask your Revenue district about it or just wait until 2005 is finished and claim back any tax owed.


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