Tax Calculation Thread

Cuileannach · 29-10-2014 8:10pm

Thanks guys. I wont be able to say I had any expenses in my freelance. Apart from internet (which I shared with housemates) I didnt have any.
So my income was

Subbing: 3686.71 (paid 0 tax)
Summer Camps: 2041.6 (paid 0 tax)
Freelancing: 7820
Jobseekers benefit: 1682.20 (1812.20 - €13x 10 weeks=130 euro nontaxable)
Income Total: 15230.51

Prsi 4% 0f 7820 = 312.80
Usc 2% on 10036 = 200.72
4% on the next 5325.51 - 212.98
paye 20% on all income : (20% of 15230.51)= 3046.10
andafter you get that figure subtract your tax credits.
3046.10 - Tax Credits: 3500 = -453.9

Then I have paid witheld tax of €1360, am I owed 1360 back?

Also if I paid my college fees for a semester that January do I put that in?
Sorry for all the detail Im just so bad at calculating this and I really appreciate the help!

Cuileannach · 29-10-2014 8:11pm

Thanks guys. I wont be able to say I had any expenses in my freelance. Apart from internet (which I shared with housemates) I didnt have any.
So my income was

Subbing: 3686.71 (paid 0 tax)
Summer Camps: 2041.6 (paid 0 tax)
Freelancing: 7820
Jobseekers benefit: 1682.20 (1812.20 - €13x 10 weeks=130 euro nontaxable)
Income Total: 15230.51

Prsi 4% 0f 7820 = 312.80
Usc 2% on 10036 = 200.72
4% on the next 5325.51 - 212.98
paye 20% on all income : (20% of 15230.51)= 3046.10
andafter you get that figure subtract your tax credits.
3046.10 - Tax Credits: 3500 = -453.9

Then I have paid witheld tax of €1360, am I owed 1360 back- can I take my PRSI and USC from this

Also if I paid my college fees for a semester that January do I put that in?
Sorry for all the detail Im just so bad at calculating this and I really appreciate the help!

rahmalec · 29-10-2014 10:45pm

Cuileannach wrote: »

Thanks guys. I wont be able to say I had any expenses in my freelance. Apart from internet (which I shared with housemates) I didnt have any.
So my income was

Subbing: 3686.71 (paid 0 tax)
Summer Camps: 2041.6 (paid 0 tax)
Freelancing: 7820
Jobseekers benefit: 1682.20 (1812.20 - €13x 10 weeks=130 euro nontaxable)
Income Total: 15230.51

Prsi 4% 0f 7820 = 312.80
Usc 2% on 10036 = 200.72
4% on the next 5325.51 - 212.98
paye 20% on all income : (20% of 15230.51)= 3046.10
andafter you get that figure subtract your tax credits.
3046.10 - Tax Credits: 3500 = -453.9

Then I have paid witheld tax of €1360, am I owed 1360 back- can I take my PRSI and USC from this

Also if I paid my college fees for a semester that January do I put that in?
Sorry for all the detail Im just so bad at calculating this and I really appreciate the help!

Were the summer camps and subbing put through payroll or did you have to invoice for them? (ie, were they self employed stuff or paye?).

Cuileannach · 29-10-2014 11:01pm

The summer camps and subbing were PAYE, I paid USC but I didnt pay any tax.

Larry Wildman · 29-10-2014 11:10pm

Sounds like you're not claiming the PAYE tax credit (which you're entitled too).

Note that to get tax relief, you need to be paying tax...

rahmalec · 30-10-2014 1:53am

Cuileannach wrote: »

Thanks guys. I wont be able to say I had any expenses in my freelance. Apart from internet (which I shared with housemates) I didnt have any.
So my income was

Subbing: 3686.71 (paid 0 tax)
Summer Camps: 2041.6 (paid 0 tax)
Freelancing: 7820
Jobseekers benefit: 1682.20 (1812.20 - €13x 10 weeks=130 euro nontaxable)
Income Total: 15230.51

Prsi 4% 0f 7820 = 312.80
Usc 2% on 10036 = 200.72
4% on the next 5325.51 - 212.98
paye 20% on all income : (20% of 15230.51)= 3046.10
andafter you get that figure subtract your tax credits.
3046.10 - Tax Credits: 3500 = -453.9

Then I have paid witheld tax of €1360, am I owed 1360 back- can I take my PRSI and USC from this

Also if I paid my college fees for a semester that January do I put that in?
Sorry for all the detail Im just so bad at calculating this and I really appreciate the help!

So if it's jobseekers benefit and not allowance you were claiming, then it's taxable except for the first €13 each week (which you've done already). Also, you can claim the paye tax credit for this (unless it has been used already).

So, let's lump all your taxable "paye" income together including the jsb: 3686.71 + 2041.6 + 1682.20 = 7410.51
Freelance income: 7820.00
Total: 15230.51

The PRSI payed on the paye income is totally separate and, I think but not too sure, that you can't get it back.

-USC: 200.72 (2% of 10036) + 207.78 (4% of [15230.51-10036])
-PRSI: For self-employed income over 5000, minimum €500 (so this would be you here). Note that this would count as 52 contributions for the state pension.
-Income tax: 20% of total earnings = 3046.10, but you get a 1482.10 paye credit (20% of paye earnings up to max 1650) and a personal credit of 1564 (20% of remaining earnings up to 1650 again). So answer is 0!
Total: 908.50

Seriously, you have no expenses at all? Google what kind of freelancing you did and what the usual expenses are. Make sure to keep the receipts.

Have you registered for ROS? You have another 2 weeks if you have, and it calculates it all for you there.
If you have 1360 withheld, you'll get a refund (1360 - 908.50).

seachto7 · 30-10-2014 10:22pm

Quick one folks. Just going through income/expenses and the likes.

I went back to uni last year, so could I include the first term fees as an expense. The course will after all be of benefit to me professionally.....

As I went back full time, I didn't earn a whole pile.

A question: can I include VHi in my expenses, or does that fall under a specific category.

Total income (from two different strands = €12,380
Expenses (petrol, phone, internet, uni fees, work related stuff etc = €7039

So I only made about €5K. Not sure how much tax I would pay on this....

Alan Shore · 30-10-2014 10:29pm

seachto7 wrote: »

I went back to uni last year, so could I include the first term fees as an expense. The course will after all be of benefit to me professionally.....

A question: can I include VHi in my expenses, or does that fall under a specific category.

How does your uni fees meet the "wholly and exclusively" test for business expenses?

You already get a tax credit for VHI but either way it would not be deductible.

seachto7 · 30-10-2014 10:58pm

Ok, I didn't include the VHI, so that's that answered. I don't get you with the "wholly and exclusively"? What I studied would relate to what I was doing freelance. As in, could I put it down as an expense...

Larry Wildman · 31-10-2014 12:12am

seachto7 wrote: »

Quick one folks. Just going through income/expenses and the likes.

I went back to uni last year, so could I include the first term fees as an expense. The course will after all be of benefit to me professionally.....

As I went back full time, I didn't earn a whole pile.

A question: can I include VHi in my expenses, or does that fall under a specific category.

Total income (from two different strands = €12,380
Expenses (petrol, phone, internet, uni fees, work related stuff etc = €7039

So I only made about €5K. Not sure how much tax I would pay on this....

Are you disallowing personal use for phone etc?

If the fees are for a course that clearly relates to your trade then I'd be happy enough to claim a deduction for them.

VHI is relieved at source so is irrelevant and not deductible.

You'll pay no tax.

rosboy · 31-10-2014 6:11pm

Hey guys.

Quick question. I'm filling in my form 11 online, and can't figure out where to fill in the details for PRSI. I own a limited company, so it's just that income that I'm declaring. I've trawled through the form several times, and can't find the box to input it. I'm assuming it's on the PAYE/BIK/Pensions tab where I fill in my USC details, but can't find where to input the PRSI...any advise is greatly welcomed.

Thanks.

premier10 · 31-10-2014 8:37pm

rosboy wrote: »

Hey guys.

Quick question. I'm filling in my form 11 online, and can't figure out where to fill in the details for PRSI. I own a limited company, so it's just that income that I'm declaring. I've trawled through the form several times, and can't find the box to input it. I'm assuming it's on the PAYE/BIK/Pensions tab where I fill in my USC details, but can't find where to input the PRSI...any advise is greatly welcomed.

Thanks.

There is no box,
You don't enter it

Larry Wildman · 31-10-2014 8:39pm

premier10 wrote: »

There is no box,
You don't enter it

Except for the new "self assessment" section (which is a joke)...

rosboy · 31-10-2014 8:40pm

premier10 wrote: »

There is no box,
You don't enter it

Thanks for the answer premier10.

When I get to the calculate page, it shows a PRSI field with a zero value. I would have thought that if I didn't have to enter it, it wouldn't show a PRSI field?

premier10 · 31-10-2014 8:43pm

That field appears for everyone on the calculate page regardless, some are blank and some have a figure, - based on the income details entered normally class S Prsi

rosboy · 31-10-2014 8:46pm

premier10 wrote: »

That field appears for everyone on the calculate page regardless, some are blank and some have a figure, - based on the income details entered normally class S Prsi

Thanks premier10.

I'm S1 class, so on the IT Self Assessment Page at the end its showing as 0. Do I leave it that way, or adjust the B column figure and add a note explaining it?

premier10 · 31-10-2014 8:52pm

Column A will not show a figure if this amount is not due, if there is an amount due then you enter it on Column B and a note. It would be unusual for ros to calculate a zero if you say you owe prsi. Make sure all your entries are correct first

rosboy · 31-10-2014 9:07pm

premier10 wrote: »

Column A will not show a figure if this amount is not due, if there is an amount due then you enter it on Column B and a note. It would be unusual for ros to calculate a zero if you say you owe prsi. Make sure all your entries are correct first

Sorry if I'm slow on the uptake. This is my first return that I'm filing, so trying to figure it out.

On my P35 for the year, I was liable for PRSI. I paid this. I also paid my USC and PAYE

On the form 11, there is a place where I put in the USC and PAYE I paid, but nowhere to put the PRSI.

So does that mean I need to enter it in column B or not?

Sorry again about all the stupid questions.

premier10 · 31-10-2014 9:17pm

No you don't enter the prsi figure at all, because you are entering salaried income that's why it's 0, so leave as zero.

I misread you as well, i assumed your income was self employed trade, not director salary.

rosboy · 31-10-2014 9:18pm

premier10 wrote: »

No you don't enter the prsi figure at all, because you are entering salaried income that's why it's 0, so leave as zero.

I misread you as well, i assumed your income was self employed trade, not director salary.

Great. Thanks for the help premier10. Appreciate it.

seachto7 · 03-11-2014 10:48pm

Hi all again. Not sure if you could help me on this one. I'm filling in the form 11 (late I know) online, and just stuck on one thing.

I got help with it last year, so wasn't paying as much attention as I should.

I am paying tax on two trades/business/whatever you'd like to call them.

I have my expenses figures for both, and what I earned from both.

So, on the first, I am at the section:

Profit assessable in 2013

Amount of adjusted net profit for accounting period:

Amount of adjusted net loss for accounting period:

Not being much good at maths at school, I assume in this case, I'll just be putting in the net profit figure (which would be the figure after I subtract expenses from earnings, correct?)

Or, do I just scroll down to the parts with the headings of Trading Account Items (see attached) and continue from there?

I think I'll submit something, and let them get back to me if I have left anything out.

Gard1 · 03-11-2014 10:58pm

Your adjusted profit is the your net profit plus the add back for light and heat and personal motor

seachto7 · 03-11-2014 11:07pm

Gah, I think I'll get the person who helped me last year! Headf*ck stuff.

Frigga_92 · 06-11-2014 10:45am

Got my answer elsewhere.

theenergy · 07-11-2014 11:33am

Hi All,

Inheritance of property valuation 200K
Solicitors Fees 20K

Qs 1. What will the inheritance tax be?

Sold Property Sold for 220K
Legal and Auctioneers Fees 10K

Qs 2. What will the Capital Gains Tax be?

Gard1 · 07-11-2014 11:35am

theenergy wrote: »

Hi All,

Inheritance of property valuation 200K
Solicitors Fees 20K

Qs 1. What will the inheritance tax be?

Sold Property Sold for 220K
Legal and Auctioneers Fees 10K

Qs 2. What will the Capital Gains Tax be?

You will need to give us more info than that!!! who did you inherit the property from
as this makes a massive difference

theenergy · 07-11-2014 11:40am

inherited from my mothers neighbour

of absolute no relation

Gard1 · 07-11-2014 11:47am

value 200k less the 20k expenses and 15075 threshold allowance =164925 @ 33% = 54,425

CGT = 220k - 10k fees = 210 sales proceed less 200k cost = 10k gain less annual exemption 1270 = 8730 *33%= 2881

theenergy · 07-11-2014 11:52am

thanks Gard1

Hardy Eustace · 11-11-2014 8:43pm

Doing form 11 online and looking to find out what is allowable in the section "Allowable Deductions incurred in Employment", I referred to the "Guide to Completing 2013 Pay & FileSelf-Assessment Returns". All it says is "Depending on the nature of your employment you may be entitled to expenses against your income. 'Flat rate' expenses are approved by Revenue in relation to certain employments/occupations. A full list can be found at www . revenue . ie." Well, maybe it can, but it might be a help if they said where. I can't find it.

Does anyone know where this can be found or, alternatively, what's allowable. I'm employed as a software developer, my wife as a clerical officer. Is there standard stuff that can be claimed like a clothing, etc?

Thanks.

relax carry on · 11-11-2014 9:04pm

Hardy Eustace wrote: »

Doing form 11 online and looking to find out what is allowable in the section "Allowable Deductions incurred in Employment", I referred to the "Guide to Completing 2013 Pay & FileSelf-Assessment Returns". All it says is "Depending on the nature of your employment you may be entitled to expenses against your income. 'Flat rate' expenses are approved by Revenue in relation to certain employments/occupations. A full list can be found at www . revenue . ie." Well, maybe it can, but it might be a help if they said where. I can't find it.

Does anyone know where this can be found or, alternatively, what's allowable. I'm employed as a software developer, my wife as a clerical officer. Is there standard stuff that can be claimed like a clothing, etc?

Thanks.

Link is here.

http://www.revenue.ie/en/tax/it/employee-expenses.html#section1

Larry Wildman · 11-11-2014 9:06pm

Hardy Eustace wrote: »

Doing form 11 online and looking to find out what is allowable in the section "Allowable Deductions incurred in Employment", I referred to the "Guide to Completing 2013 Pay & FileSelf-Assessment Returns". All it says is "Depending on the nature of your employment you may be entitled to expenses against your income. 'Flat rate' expenses are approved by Revenue in relation to certain employments/occupations. A full list can be found at www . revenue . ie." Well, maybe it can, but it might be a help if they said where. I can't find it.

Does anyone know where this can be found or, alternatively, what's allowable. I'm employed as a software developer, my wife as a clerical officer. Is there standard stuff that can be claimed like a clothing, etc?

Thanks.

Google "flat rate expenses 2013" and you'll find the spreadsheet/chart.

Off the top of my head, I doubt there are ones for you guys but I could be wrong.

Colonialboy · 12-11-2014 10:20am

HOME CARER CREDIT - Question

Im married PAYE worker, (my wife is stay at home, looks after the kids) .
I always assumed the place I worked looked after my credits ok but
I just noticed my PAYE Anytime had me registered with only 1 Dependent child. When in fact I have 3 kids under 16, in school.

Currently my home Carer Tax Credit is 810 , is that right?
What amount in Tax credit should I recieve for 3 Dependent kids ?
Is it different to if you have 1 dependent kid ?

Manofthewest · 12-11-2014 1:58pm

Colonialboy wrote: »

HOME CARER CREDIT - Question

Im married PAYE worker, (my wife is stay at home, looks after the kids) .
I always assumed the place I worked looked after my credits ok but
I just noticed my PAYE Anytime had me registered with only 1 Dependent child. When in fact I have 3 kids under 16, in school.

Currently my home Carer Tax Credit is 810 , is that right?
What amount in Tax credit should I recieve for 3 Dependent kids ?
Is it different to if you have 1 dependent kid ?

810 is correct.
That's the max you can claim as a tax credit.

Hardy Eustace · 12-11-2014 3:11pm

Thank you, relax carry on and Larry Wildman.

Ste1605 · 20-01-2015 1:14am

claim credits for spouse

is this possible outside marriage? what is required? I earn 50k and she earns 16k what would be the overall monthly gain??
thanks in advance

CIARAN_BOYLE · 20-01-2015 9:52am

Ste1605 wrote: »

claim credits for spouse

is this possible outside marriage? what is required? I earn 50k and she earns 16k what would be the overall monthly gain??
thanks in advance

spouse, so marriage (or civil partnership) is necessary.

You would be able to claim about 300 in unclaimed tax credits and 10,000 in unclaimed tax band giving an annual saving of approx €2,300.

But yes marriage is necessary.

cikearney · 20-01-2015 11:47am

hi all! Just stumbled across this thread and was wondering if anybody could give me the info I'm looking for.

I am PAYE on 42000 and due to be married this year to my self employed partner of a LTD company. I am not a director or anything.

I pay enough tax as it is and sm wondering am u going to be worse off?

thanks in advance

cikearney · 20-01-2015 11:49am

*am I going to be worse of

Citizenpain · 20-01-2015 1:08pm

Nope ,,apart from the expense of a wedding

cikearney · 20-01-2015 1:26pm

Citizenpain wrote:

Nope ,,apart from the expense of a wedding

so there will be no ammendments to my pay slip? what if my circumstances change and I fall out of work, surely I have no job seekers behind me or is this also incorrect

MuddyDog · 27-01-2015 7:01pm

Just wondering if I should apply for a P21 balancing statement for 2014. According to my P60 I was paid 42k and paid tax of 7k with usc of 2.3k. I'm single, under 30, and have 3.6k tax credits.

allthedoyles · 28-01-2015 11:16pm

MuddyDog wrote: »

Just wondering if I should apply for a P21 balancing statement for 2014. According to my P60 I was paid 42k and paid tax of 7k with usc of 2.3k. I'm single, under 30, and have 3.6k tax credits.

In 2014 , on an income of 42k you would have paid 7k tax and 2.3k usc , but with tax credits of 3.3k

You say your credits were 3.6k , so apply for balancing statement and find out what the extra 300e credits are .

And remember the only way to reduce your tax liability for 2014 , would be to increase your tax credits .
Browse the www.revenue.ie website and see what your entitlements are .

igorbiscan · 31-01-2015 1:03pm

Hi all,
Im on 35k a year an I am considering taking a month off in the summer without
pay. What would happen in terms of terms of tax? I currently pay about €120 per month into pension and my take-home would be €520 p.w.
Thanks in advance.

CIARAN_BOYLE · 02-02-2015 1:44am

igorbiscan wrote: »

Hi all,
Im on 35k a year an I am considering taking a month off in the summer without
pay. What would happen in terms of terms of tax? I currently pay about €120 per month into pension and my take-home would be €520 p.w.
Thanks in advance.

At the moment taxable gross pay is 33600

thismis in the lower rate band so you would only save on your marginal rate 31%. If you were to get a pay raise it will move you into yhe 40% tax band for paye which would allow incease your savings from a month off considerably. So if you are not sure if you want to take a month off wighwigwithout pay this year or next year and you willmget a pay rise next year would be a better option

igorbiscan · 03-02-2015 11:35am

CIARAN_BOYLE wrote: »

At the moment taxable gross pay is 33600

thismis in the lower rate band so you would only save on your marginal rate 31%. If you were to get a pay raise it will move you into yhe 40% tax band for paye which would allow incease your savings from a month off considerably. So if you are not sure if you want to take a month off wighwigwithout pay this year or next year and you willmget a pay rise next year would be a better option

Thanks Ciaran,
I reckon a pay increase is off the table for this year!
Roughly would I claim back a in a one-off payment or would I see it in a reduction on the tax I pay weekly following the month off?
Any idea roughly how much I would get to claim back??
Thanks in advance.

murfilein · 17-03-2015 2:29pm

should i file for a tax return?

all my colleagues at work advised me not to do it, since i may get some money back, but i may also need to pay the government.

is there a way for me find out what i can expect? i'm working i ireland for 2 years already.

vanman99 · 28-04-2015 11:40am

Hi, wonder if anyone can advise. My partner returned to work and i received an amended tax credit cert, basically all of our combined income is now taxed at 20% and not as previously where i think around €42k was taxed at 20% and everything above at 41%. Now considering that there was about €25k taxed at 41% and this is now taxed at 20% shouldn't i have seen some benefit in my wages? This is my second pay month and all i have seen is that my tax status changes to W because i lose the home carers credit for my wife going to work and my my total take home is down by €80 to repay that credit...Anyone know what is going on here?

CIARAN_BOYLE · 28-04-2015 11:42am

vanman99 wrote: »

Hi, wonder if anyone can advise. My partner returned to work and i received an amended tax credit cert, basically all of our combined income is now taxed at 20% and not as previously where i think around €42k was taxed at 20% and everything above at 41%. Now considering that there was about €25k taxed at 41% and this is now taxed at 20% shouldn't i have seen some benefit in my wages? This is my second pay month and all i have seen is that my tax status changes to W because i lose the home carers credit for my wife going to work and my my total take home is down by €80 to repay that credit...Anyone know what is going on here?

W means weak 1 month 1 ie only the tax credits for the payment period are allocated to a months payment.

vanman99 · 28-04-2015 11:44am

Can you explain what that means?

Tax Calculation Thread

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