All pay taken in tax

whatthefurry · 29-11-2015 09:57PM #1

Hoping for some help.

I was made redundant a few months ago, was advised to ring up the tax office and transfer tax credits to my spouse, which I did. They took into account the jobseekers I was being paid though. Also, I only got statutory redundancy so no issue there with tax.

Luckily, got another job and in my first month they worked off my p45, so got paid. However in the second month a new tax credit cert issued from the tax office ( don't know why) and I got no tax credits at all. I got no pay, all my pay was taken in tax. I rang up the tax office and they said they would do nothing until next year. I rang again and another lady said she would issue a new cert but it hasnt come out yet. My spouse got a little extra but not that much in their paycheque.

I can't understand how I could have NO pay at all, surely at the most I should be paying around 60% tax?

CIARAN_BOYLE · 29-11-2015 11:15PM

whatthefurry wrote: »

Hoping for some help.

I was made redundant a few months ago, was advised to ring up the tax office and transfer tax credits to my spouse, which I did. They took into account the jobseekers I was being paid though. Also, I only got statutory redundancy so no issue there with tax.

Luckily, got another job and in my first month they worked off my p45, so got paid. However in the second month a new tax credit cert issued from the tax office ( don't know why) and I got no tax credits at all. I got no pay, all my pay was taken in tax. I rang up the tax office and they said they would do nothing until next year. I rang again and another lady said she would issue a new cert but it hasnt come out yet. My spouse got a little extra but not that much in their paycheque.

I can't understand how I could have NO pay at all, surely at the most I should be paying around 60% tax?

tax is on a cumulative basis, one of the following could apply

1. when you transferred credits to your wife someone messed up and you transferred credits and srcop that you had already used, therefore when new job looked at your cert you had less credits than you used in previous job and deducted this from you
2. your previous employer made a mistake and under taxed you, your new employer has to fix this.
3. your new employer is making a mistake

whatthefurry · 29-11-2015 11:29PM

The thing is though, like lots of people, I check those online tax calculators and we were only getting jointly what we should have been getting. So I find it hard to understand how I could have underpaid tax previously.

Is there a dummy guide to checking myself, I find the revenue very helpful mostly when I ring up but they don't answer specific questions like this.

whatthefurry · 29-11-2015 11:32PM

The thing is though, like lots of people, I check those online tax calculators and we were only getting jointly what we should have been getting. So I find it hard to understand how I could have underpaid tax previously.

Is there a dummy guide to checking myself, I find the revenue very helpful mostly when I ring up but they don't answer specific questions like this.

For eg if I get my p45 and the last two payslips ( one showing pay and tax and the other all tax) and then my spouse's payslips and add up all the tax paid, can I check if we have under/overpaid. I am not sure I will do it right, this is not something I am v comfortable with.

whatthefurry · 29-11-2015 11:34PM

The thing is though, like lots of people, I check those online tax calculators and we were only getting jointly what we should have been getting. So I find it hard to understand how I could have underpaid tax previously.

Is there a dummy guide to checking myself, I find the revenue very helpful mostly when I ring up but they don't answer specific questions like this.

For eg if I get my p45 and the last two payslips ( one showing pay and tax and the other all tax) and then my spouse's payslips and add up all the tax paid, can I check if we have under/overpaid. I am not sure I will do it right, this is not something I am v comfortable with.

Luckily for me I was only out of work for about 6 weeks, so it's not as though a massive mistake could have been made in that amount of time either? I hope.

Stheno · 29-11-2015 11:42PM

Ok, so you transferred the 1650 credits you could to your wife, which then left you with 1650 per year, or 137.5 per month or 31.73 per week which means you were able to earn five times that or 158.65 per week without incurring a tax liability.

If you were on full rate JSB of €188 per week, you "earned" more than that so currently have a tax liability and no credits, and all of your income will be subject to tax, as you need to get back level with your creidts again.

Does that make sense?

whatthefurry · 30-11-2015 08:15AM

Thanks, Stheno, but they took into account my jobseekers- actually they told me in the tax office that they couldnt transfer all my credits because I had to keep enough to cover the jobseekers.

But even say that is the reason, if all my income were subject to tax and I have no credits left, then why would I get nothing? Sorry if I am being thick but I get paid monthly, 3333 per month, if all of that is subject to tax, wouldnt it be taxed at the two bands, USC and PRSI and then I should get the 'leftovers'?

toadfly · 30-11-2015 09:30AM

You need to take the full year into account though, not just this month unless you are on a month 1 basis?

Is it possible that your old employer included your redundancy as normal gross pay on your P45 and thats why it looks like you underpaid tax and so arent getting anything now as you are effectively paying tax on gross pay incorrectly?

relax carry on · 30-11-2015 09:32AM

whatthefurry wrote: »

Thanks, Stheno, but they took into account my jobseekers- actually they told me in the tax office that they couldnt transfer all my credits because I had to keep enough to cover the jobseekers.

But even say that is the reason, if all my income were subject to tax and I have no credits left, then why would I get nothing? Sorry if I am being thick but I get paid monthly, 3333 per month, if all of that is subject to tax, wouldnt it be taxed at the two bands, USC and PRSI and then I should get the 'leftovers'?

I think the problem is you provided your P45 to your new employer at the start. The information regarding rate band and credits on it was no longer valid as you had claimed taxable jobseekers benefit and transferred tax credits to your spouse. Your new employer used the details from the P45 to calculate your tax until the new cert came out from Revenue. The new cert issued on a cumulative basis meaning any underpayment of tax due to using the old P45 was collected straight away.

whatthefurry · 30-11-2015 10:37AM

relax carry on wrote: »

I think the problem is you provided your P45 to your new employer at the start. The information regarding rate band and credits on it was no longer valid as you had claimed taxable jobseekers benefit and transferred tax credits to your spouse. Your new employer used the details from the P45 to calculate your tax until the new cert came out from Revenue. The new cert issued on a cumulative basis meaning any underpayment of tax due to using the old P45 was collected straight away.

Oh I see, that makes sense. How can I check what I may have underpaid/ to see if I will be paid this month?

I am registered for PAYE online ( I registered when I was being made redundant and I was going to try to transfer tax credits myself but then I thought better of it as I wasn't sure what I was doing so I rang the tax office instead), can I check the year overall there or what can I do to check this.

relax carry on · 30-11-2015 10:49AM

whatthefurry wrote: »

Oh I see, that makes sense. How can I check what I may have underpaid/ to see if I will be paid this month?

I am registered for PAYE online ( I registered when I was being made redundant and I was going to try to transfer tax credits myself but then I thought better of it as I wasn't sure what I was doing so I rang the tax office instead), can I check the year overall there or what can I do to check this.

The only people who can tell you about this month's pay is your payroll section. You can use your PAYE anytime account to check your overall situation next year by requesting a P21 when you and your spouse have received your P60's

whatthefurry · 30-11-2015 03:19PM

Thanks for that, I have put in a request to payroll and someone there will hopefully get back to me.

I was only on jobseekers for 6 weeks or so, would it affect me that badly?

All pay taken in tax

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