Question about tax

JP2000 · 22-05-2020 12:51am #1

Hi, I hope someone can help me with this.
Having heard some colleagues speaking about their take home pay recently I’ve been wondering if I might be paying too much tax.
I intend to look into this properly but I was just wondering if there’s anybody on the same point as me on the salary scale that wouldn’t mind telling me if their take home pay is similar to mine?
I am on point 8 of the pre 2011 scale and my take home is €1314 per fortnight.
Thanks in advance

spurious · 22-05-2020 2:11am

It is difficult to compare as we don't know your status as regards tax credits etc.

Make an account on revenue.ie and review your tax for last year, claim allowances you are due etc.

jimmycrackcorm · 22-05-2020 2:27am

Everyone (PAYE) should be doing their tax on revenues MyAccount online at the start of the year. Also use the revenue app to capture youre expenses such as medical and prescription receipts.
You need to check your credits are correct also.

r93kaey5p2izun · 22-05-2020 2:43am

It's very close (<€20 more) to what I took home on point 8 six years ago. Just checked there out of interest. Obviously some deductions have changed since then, and you don't state what allowances you have so I can't compare directly. But it seems about right to me.

Geuze · 22-05-2020 10:53am

JP2000 wrote: »

Hi, I hope someone can help me with this.
Having heard some colleagues speaking about their take home pay recently I’ve been wondering if I might be paying too much tax.
I intend to look into this properly but I was just wondering if there’s anybody on the same point as me on the salary scale that wouldn’t mind telling me if their take home pay is similar to mine?
I am on point 8 of the pre 2011 scale and my take home is €1314 per fortnight.
Thanks in advance

First, check your tax credits and your SRCOP.

Then, calculate your net pay yourself.

Then compare that to your payslip.

Treppen · 22-05-2020 11:49am

Geuze wrote: »

First, check your tax credits and your SRCOP.

Then, calculate your net pay yourself.

Then compare that to your payslip.

Hey Geuze you're usually good on this tax thing.

What's the deal on working from home, any credits or rebates for that?

JP2000 · 22-05-2020 12:23pm

Thanks all for the replies. Much appreciated.

rainbowtrout · 22-05-2020 4:03pm

Treppen wrote: »

Hey Geuze you're usually good on this tax thing.

What's the deal on working from home, any credits or rebates for that?

There's a bit here towards the end of the page on working from home expenses

https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/health_and_safety/working_at_home.html

Treppen · 22-05-2020 4:29pm

rainbowtrout wrote: »

There's a bit here towards the end of the page on working from home expenses

https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/health_and_safety/working_at_home.html

Wonder do they take the regular teaching allowance into consideration.

Geuze · 22-05-2020 4:32pm

Treppen wrote: »

Hey Geuze you're usually good on this tax thing.

What's the deal on working from home, any credits or rebates for that?

https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/health_and_safety/working_at_home.html

E-working and tax relief
If you are working from home, you may be eligible for tax relief on expenses like light, heat, telephone and internet usage.

If your employer pays you an allowance towards these expenses, you can get up to €3.20 per day without paying any tax, PRSI or USC on it. If your employer pays more than €3.20 per day to cover expenses, you pay tax, PRSI and USC as normal on the amount above €3.20.

If your employer does not pay you an allowance for your expenses, you can make a claim for tax relief at the end of the year. You will get money back from the taxes you paid.

How much can I claim?
Your refund of tax is based on

How many days you worked from home
The cost of the expenses
Revenue’s agreed rate for calculating the cost of running a home office

Revenue’s rate for the cost of running a home office is 10% of the total cost. This means that you can claim 10% of the total amount of allowable utility bills against your taxes. This is only available for the days that you work from home. This does not include times you may have brought work home to do outside your normal working hours.

If your employer pays you an allowance towards your expenses, the amount paid is deducted from the amount you can claim back from Revenue.

Example
Mary works from home for 6 months while her office is closed due to the COVID-19 emergency. During that 6 months her household bills for heating, electricity and broadband come to €1000. At the end of the year she can claim tax back on expenses of €100 (10% of €1000).

The amount she gets back depends on her rate of tax. If she pays tax at the higher tax rate of 40% she will get €40 back from her taxes (40% of €100). If she pays tax at the lower rate of 20%, she will receive €20 back (20% of €100).

Should I pay tax on equipment from my employer?
If your employer gives you equipment that you need to do your work, like a computer or printer, and you mainly use it for work, it is not considered a benefit in kind. This means that you do not have to pay any tax for receiving the equipment from your employer.

Capital Gains Tax
If you use only part of your home for e-working, your home remains your Principal Private Residence and you are not liable for CGT when you sell it.

You can get more information from Revenue.

Treppen · 22-05-2020 4:35pm

Geuze wrote: »

https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/health_and_safety/working_at_home.html

E-working and tax relief
If you are working from home, you may be eligible for tax relief on expenses like light, heat, telephone and internet usage.

If your employer pays you an allowance towards these expenses, you can get up to €3.20 per day without paying any tax, PRSI or USC on it. If your employer pays more than €3.20 per day to cover expenses, you pay tax, PRSI and USC as normal on the amount above €3.20.

If your employer does not pay you an allowance for your expenses, you can make a claim for tax relief at the end of the year. You will get money back from the taxes you paid.

How much can I claim?
Your refund of tax is based on

How many days you worked from home
The cost of the expenses
Revenue’s agreed rate for calculating the cost of running a home office

Revenue’s rate for the cost of running a home office is 10% of the total cost. This means that you can claim 10% of the total amount of allowable utility bills against your taxes. This is only available for the days that you work from home. This does not include times you may have brought work home to do outside your normal working hours.

If your employer pays you an allowance towards your expenses, the amount paid is deducted from the amount you can claim back from Revenue.

Example
Mary works from home for 6 months while her office is closed due to the COVID-19 emergency. During that 6 months her household bills for heating, electricity and broadband come to €1000. At the end of the year she can claim tax back on expenses of €100 (10% of €1000).

The amount she gets back depends on her rate of tax. If she pays tax at the higher tax rate of 40% she will get €40 back from her taxes (40% of €100). If she pays tax at the lower rate of 20%, she will receive €20 back (20% of €100).

Should I pay tax on equipment from my employer?
If your employer gives you equipment that you need to do your work, like a computer or printer, and you mainly use it for work, it is not considered a benefit in kind. This means that you do not have to pay any tax for receiving the equipment from your employer.

Capital Gains Tax
If you use only part of your home for e-working, your home remains your Principal Private Residence and you are not liable for CGT when you sell it.

You can get more information from Revenue.

So what about the teachers allowance. Do you think that has anything to do with working from home or is it seperate?

"If your employer pays you an allowance towards your expenses, the amount paid is deducted from the amount you can claim back from Revenue."

rainbowtrout · 22-05-2020 5:13pm

Treppen wrote: »

So what about the teachers allowance. Do you think that has anything to do with working from home or is it seperate?

"If your employer pays you an allowance towards your expenses, the amount paid is deducted from the amount you can claim back from Revenue."

No I don't think so. Working from home covers heat and light, phone bills etc, things you wouldn't incur if you were working at your place of employment.

Question about tax

Comments