Is there any reason why my tax bill would have risen this year?

flanagain · 12-09-2016 06:41PM #1

I've been filing self assessed returns since 2013. My partner (not married) and I moved down the country for his job so I just do a little freelance work to get by. I don't make very much at all but we're okay because his income is great.

Anyway, in 2014 I filed my return and the total tax I owed was something like €270 on €11855.00 in income. I'm filling in my form for 2015 on €12265.00 in income and it's saying I owe €1400 with tax credits of €1650.

Nothing's changed in my circumstances in the past year so I can't understand what the difference is. I was expecting to only have to pay €189 just for USC this year as Budget 2015 raised the level at which you start to pay tax.

Any ideas?

CIARAN_BOYLE · 12-09-2016 10:00PM

flanagain wrote: »

I've been filing self assessed returns since 2013. My partner (not married) and I moved down the country for his job so I just do a little freelance work to get by. I don't make very much at all but we're okay because his income is great.

Anyway, in 2014 I filed my return and the total tax I owed was something like €270 on €11855.00 in income. I'm filling in my form for 2015 on €12265.00 in income and it's saying I owe €1400 with tax credits of €1650.

Nothing's changed in my circumstances in the past year so I can't understand what the difference is. I was expecting to only have to pay €189 just for USC this year as Budget 2015 raised the level at which you start to pay tax.

Any ideas?

2014 is either wrong or possibly you paid preliminary tax in 2013 which made your 2014 liability lower.

Back of the envelope calculation of your 2015 calculation agrees.

Lockedout2 · 12-09-2016 10:35PM

Minimum PRSI is €500

Income tax is 12,000 x 20% = 2,400 - 1,650 = 750.

USC 12,000 x 1.5% = 180

flanagain · 13-09-2016 11:00AM

CIARAN_BOYLE wrote: »

2014 is either wrong or possibly you paid preliminary tax in 2013 which made your 2014 liability lower.

Back of the envelope calculation of your 2015 calculation agrees.

Yeah, it's seems that was the case. Not to worry. I just wanted to make sure. Thanks for your help.

flanagain · 13-09-2016 11:35AM

Lockedout2 wrote: »

Minimum PRSI is €500

Income tax is 12,000 x 20% = 2,400 - 1,650 = 750.

USC 12,000 x 1.5% = 180

Thanks. It seems that last year I received the PAYE tax credit for some reason. I wish I'd noticed it earlier though. Not a nice surprise right before christmas. You live and learn.

Is there any reason why my tax bill would have risen this year?

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