I am requesting your kind help as I believe something isn't right with the taxes applied to my new job.
To give you a bit of background:
I recently changed jobs. My previous job paid €40K (yearly) whereas my current job is at €48K (yearly). I therefore would expect a slight increase on my monthly income.
Prior to accepting the role, I had used a few simulators to assess the tax & net income for the new job (forecast at circa. €35.5K or €2.9K monthly).
Today, I had the great displeasure of looking at my reported payment for September and something isn't sitting right. I'm actually earning less than I did in my previous job when the tax basis is Cumulative for both. As a matter of fact, my income tax doubled when I made the switch from Week 1 in August to Cumulative in September.
In any case, it doesn't make sense that I am earning less from a net income perspective when I'm making more gross-wise. Sure, income taxes are higher, but not to this extent.
To give you some numerical facts:
Previous job at €40K (cumulative tax basis) - Generic salary with no overtime or bonus
Gross Pay: €3,333
Pay for for income tax: €3,300
Income tax: €439
Net monthly income: €2,636 - Result of the above (& matches my monthly income)
Current job at €48K (cumulative tax basis) - Generic salary with no overtime or bonus
Gross Pay: 4,136
Pay for income tax: €4,096
Income tax: €1,347
Net monthly income: 2,576 - Result of the above
If we take into account:
Tax credits: €3,300
= 12,140-3,300= 8,840 + USC
= Yearly net salary of circa. €36K - monthly around €2.9K.
Sure enough, an €8K salary increase does not trigger a €1K monthly income tax increase.
I don't owe anything to the revenue either as income tax is obviously paid through PAYE. I really do think something isn't right with this. I've changed jobs before and had a €12K increase last year when I moved to the €40K job and it didn't negatively impact my income.
Can anyone advise?