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Tax Credits with 2 jobs!

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  • 30-07-2020 5:15pm
    #1
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭


    Hello everyone,

    We are a married couple with a newborn baby :)
    My wife is currently on maternity leave and getting weekly maternity benefit (she used to work full time). Her employer doesn't cover her maternity leave.

    In order to boost our take home income, I have decided to work part time in addition to my 40-hours a week job.

    This part time job is carried over weekends and few evenings on weekdays (as needed basis). I have received my first pay from this part time job and noticed €0.00 as my Tax Credits. It says Class A1/weeks 2.
    Overall, I have received only 44% of the Gross Pay from this new part time job.

    What would be the best way to change the taxes in order to get the maximum take home money for our family?

    Thank you all.


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    #2
    Calahonda52
    Registered Users Posts: 12,223 ✭✭✭✭Calahonda52


    how are you currently assessed?
    in passing, don't fall foul of the ORGANISATION OF WORKING TIME ACT, 1997 law re the 40 per week with your main employer

    https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/hours_of_work/working_week.html

    “I can’t pay my staff or mortgage with instagram likes”.



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    #3
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    We are jointly assessed at present. Tax credits has reduced for spouse due to being on maternity leave.

    Annual salary for my 40-hours a week is €65,000.

    Annual salary for my part time job is €230,000. Will be doing approximately 8-16 hours a month from this part time job (as required only and most months will be zero hours).

    Average will be definitely under 48 hours, but thank you for highlighting this.

    Thank you
    Calahonda52 wrote: »
    how are you currently assessed?
    in passing, don't fall foul of the ORGANISATION OF WORKING TIME ACT, 1997 law re the 40 per week with your main employer

    https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/hours_of_work/working_week.html


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    #4
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    masterboy123 wrote: »
    We are jointly assessed at present. Tax credits has reduced for spouse due to being on maternity leave.

    Annual salary for my 40-hours a week is €65,000.

    Annual salary for my part time job is €230,000. Will be doing approximately 8-16 hours a month from this part time job (as required only and most months will be zero hours).

    Average will be definitely under 48 hours, but thank you for highlighting this.

    Thank you

    When all is said and done you will only receive half the money for your part time job. You can put some credits over to that job but you're just then going to pay more tax in your full time job. You're caught either way with a salary of 65000.

    Unless you really need the money I wouldn't bother to be honest. It's the reason nixers exist. Not condoning it as I'll get slated here but there's very little incentive to work extra if it's being declared for tax. We are back busy in work and it's a hard sell trying to get the technicians to do any overtime. They lose it to tax and have very little interest.


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    #5
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    I didn't even receive half of the money, got only 44%. Will it remain this way even after adjusting tax credits?
    Heres Johnny wrote: »
    When all is said and done you will only receive half the money for your part time job. You can put some credits over to that job but you're just then going to pay more tax in your full time job. You're caught either way with a salary of 65000.

    Unless you really need the money I wouldn't bother to be honest. It's the reason nixers exist. Not condoning it as I'll get slated here but there's very little incentive to work extra if it's being declared for tax. We are back busy in work and it's a hard sell trying to get the technicians to do any overtime. They lose it to tax and have very little interest.


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    #6
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    masterboy123 wrote: »
    I didn't even receive half of the money, got only 44%. Will it remain this way even after adjusting tax credits?

    Not sure how they managed to get 56% deductions when at most it's 40% PAYE, 4% PRSI and 8% USC. So you you should be coming out with 48% nett on the second job not 44%.

    If you transfer and credits or rate band to yourself it just means you'll pay more tax in your other job as you are already using them all.


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    #7
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    masterboy123 wrote: »
    I didn't even receive half of the money, got only 44%. Will it remain this way even after adjusting tax credits?

    No, you can set it up that you don't pay any tax on your part time job but you will pay more on your full time one so its all the one. Tax credits are allocated to an individual not to a job. The individual then decides which way they want to share the credits out of there's more than one job. You will be taxed 52% of every extra cent you earn now. Leave your credits with your main job. And it's up to you whether the new job is, worth the effort now. Depends how much you need the money


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    #8
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    I just checked the payslip and found this :

    TAX 37.5%
    PRSI 3.99%
    USC 8%
    SUPERANNUATION (normal) 6.4%
    ASC 0%
    LPT 0%

    Total Deductions = 55.89%

    Does this look correct?
    relax carry on wrote: »
    Not sure how they managed to get 56% deductions when at most it's 40% PAYE, 4% PRSI and 8% USC. So you you should be coming out with 48% nett on the second job not 44%.

    If you transfer and credits or rate band to yourself it just means you'll pay more tax in your other job as you are already using them all.


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    #9
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    Thank you for the advice.

    The extra takehome 500-600 a week will definitely help us from this part time job.
    Heres Johnny wrote: »
    No, you can set it up that you don't pay any tax on your part time job but you will pay more on your full time one so its all the one. Tax credits are allocated to an individual not to a job. The individual then decides which way they want to share the credits out of there's more than one job. You will be taxed 52% of every extra cent you earn now. Leave your credits with your main job. And it's up to you whether the new job is, worth the effort now. Depends how much you need the money


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    #10
    namenotavailablE
    Registered Users Posts: 59,569 ✭✭✭✭namenotavailablE


    It looks like you're probably being taxed using emergency rates for the second job- you'd need to register this second job using your online Revenue account or get the employer to do so.

    If you want to allocate some tax credits and standard rate band to that job to minimise the tax on it (although it's swings and roundabouts as your primary job will be hit for any tax saving on the second job) you could opt to do so.

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



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    #11
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    masterboy123 wrote: »
    Thank you for the advice.

    The extra takehome 500-600 a week will definitely help us from this part time job.

    Did you say it carries an annual salary of 230,000?


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    #12
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    I did register the second job online on my Revenue account before I actually started working there and added the start date.

    It seems i should not add any tax credits to my second job as I won't be doing it again until November or December 2020.
    namenotavailabl wrote: »
    It looks like you're probably being taxed using emergency rates for the second job- you'd need to register this second job using your online Revenue account or get the employer to do so.

    If you want to allocate some tax credits and standard rate band to that job to minimise the tax on it (although it's swings and roundabouts as your primary job will be hit for any tax saving on the second job) you could opt to do so.


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    #13
    Geuze
    Registered Users Posts: 13,108 ✭✭✭✭Geuze


    Heres Johnny wrote: »
    Did you say it carries an annual salary of 230,000?

    Yes, it must be a medical consultant role.


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    #14
    JayRoc
    Registered Users Posts: 1,579 ✭✭✭JayRoc


    Heres Johnny wrote: »
    Did you say it carries an annual salary of 230,000?

    I'll be honest...I saw "take home of 500-600 a week after being taxed over fifty per cent"..for a part time gig...and I wondered if a decimal point got misplaced


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    #15
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    JayRoc wrote: »
    I'll be honest...I saw "take home of 500-600 a week after being taxed over fifty per cent"..for a part time gig...and I wondered if a decimal point got misplaced

    What job pays 500-600 a week for 2 to 4 hours a week and is available on a part time basis?
    Plenty not adding up here now


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    #16
    Geuze
    Registered Users Posts: 13,108 ✭✭✭✭Geuze


    Heres Johnny wrote: »
    What job pays 500-600 a week for 2 to 4 hours a week and is available on a part time basis?
    Plenty not adding up here now

    As I said above, I'm guessing medical consultant?


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    #17
    JayRoc
    Registered Users Posts: 1,579 ✭✭✭JayRoc


    Geuze wrote: »
    As I said above, medical consultant.

    Who doesn't know how tax works?


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    #18
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    Geuze wrote: »
    As I said above, medical consultant.

    Just deciding to be a medical consultant because his wife isn't getting maternity pay and wants to earn a few quid?


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    #19
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    masterboy123 wrote: »
    I just checked the payslip and found this :

    TAX 37.5%
    PRSI 3.99%
    USC 8%
    SUPERANNUATION (normal) 6.4%
    ASC 0%
    LPT 0%

    Total Deductions = 55.89%

    Does this look correct?

    Your pension contribution is what is increasing it. That's not a "tax" if you want to call PAYE, USC and PRSI "tax" for simplicity. You are paying into a pension scheme at source.


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    #20
    Geuze
    Registered Users Posts: 13,108 ✭✭✭✭Geuze


    Heres Johnny wrote: »
    Just deciding to be a medical consultant because his wife isn't getting maternity pay and wants to earn a few quid?

    Are there any other public service jobs paying 230k?

    It must be medical consultant??


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    #21
    paul71
    Registered Users Posts: 3,115 ✭✭✭paul71


    JayRoc wrote: »
    Who doesn't know how tax works?

    You'd be surprised.


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    #22
    1874
    Registered Users Posts: 2,382 ✭✭✭1874


    paul71 wrote: »
    You'd be surprised.


    I wouldn't


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    #23
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    Thank you!

    I note few people are unhappy with me earning little extra!
    Geuze wrote: »
    As I said above, I'm guessing medical consultant?


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    #24
    Tefral
    Registered Users Posts: 4,318 ✭✭✭Tefral


    masterboy123 wrote: »
    Thank you!

    I note few people are unhappy with me earning little extra!

    I dont think so.

    I guess the question is more: how come the 230k job isn't your full time role?


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    #25
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    Because there aren't any full time position available at that position.

    Just imagine how attracted you're to this figure and now imagine people who are actually eligible for this post and the associated competition to get this job as your permanent job?
    Also what's your rough guess how many such posts are actually available?

    I hope it makes sense now? :)

    Tefral wrote: »
    I dont think so.

    I guess the question is more: how come the 230k job isn't your full time role?


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    #26
    paul71
    Registered Users Posts: 3,115 ✭✭✭paul71


    masterboy123 wrote: »
    Thank you!

    I note few people are unhappy with me earning little extra!

    Nope I think the impression I got was one of curiosity.


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    #27
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    Thank you paul71.
    Cheers
    paul71 wrote: »
    Nope I think the impression I got was one of curiosity.


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    #28
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    I have been going through my Revenue account and noticed the option of sharing Personal tax credit. Would that make any difference given my wife is looking after our newborn baby?

    Thank you


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    #29
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    masterboy123 wrote: »
    I have been going through my Revenue account and noticed the option of sharing Personal tax credit. Would that make any difference given my wife is looking after our newborn baby?

    Thank you

    Probably easier to leave it as it is for now and carry out a review at the end of the tax year by filing a form 12 tax return for 2020 via MyAccount.


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    #30
    masterboy123
    Registered Users Posts: 5,721 ✭✭✭masterboy123


    All right. Thanks for this.
    relax carry on wrote: »
    Probably easier to leave it as it is for now and carry out a review at the end of the tax year by filing a form 12 tax return for 2020 via MyAccount.


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    #31
    maestroamado
    Registered Users Posts: 4,426 ✭✭✭maestroamado


    Geuze wrote: »
    Are there any other public service jobs paying 230k?

    It must be medical consultant??


    Likely 65k +23k.
    I would have expected 65k be comfortable living...


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