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Tax after signing off

  • 17-11-2006 12:49am
    #1
    Chinafoot
    Closed Accounts Posts: 9,894 ✭✭✭


    From July until October of this year I was on the dole as I was waiting for my job to start (but had no official start date - good old civil service). I started work two weeks ago, signed off and all beforehand like a good girl, and handed my P45 into my new employer so that I could avoid the usual Emergency Tax saga so close to Christmas.

    So today I got paid and for the two weeks I had €152.02 taken in PAYE. Now for the amount of money I'm on this seems very high. There is no indication on my payslip that this is emergency tax. One of the women in work who started at the same time as me and is on the same money was only deducted €70 in PAYE. She mentioned something about the dole being taken into account. Another guy there said he heard somewhere that when you start working after being on the dole your tax is higher to "pay some of it back"!? I found this odd as I always though that unemployment benefit/assistance came out of PRSI contributions and my PRSI deduction was, as I expected, quite low.

    I've had a look at the revenue site but could find nothing (surprise, surprise!) so does anyone have any idea? I'm going to ring HR tomorrow and see what the craic is but I won't be holding my breath for any answers tbh.


Comments

  • #2
    Nevyn
    Closed Accounts Posts: 43,045 ✭✭✭✭Nevyn


    Your tax has nothing to do with your prsi and unemployment benefit,
    it sounds more like your tax credits were not processed correctly.
    Ring the tax office and enquire about it and then payroll.


  • #3
    Chinafoot
    Closed Accounts Posts: 9,894 ✭✭✭Chinafoot


    Yeah, I rang Payroll and they said that my tax credits are very low. Turns out my last employer buggered up my P45 and pretty much had a decimal point in the wrong place. I rang the tax office who said that I should get my money back in my wages this week.

    However, when I got my tax cert on Friday it said that my tax credits are reduced by 564.03 due to Unemplyment benefit that I received for 4 months while waiting for my job to start. I have to say I found this very odd. The explanation given on the cert said: "Your annual tax credits and Standard Rate Cut-Off Point are reduced by other sources of income."

    This seemed all the more strange considering that before starting work on November 6th, I hadn't been working at all since the first week in January. Surely this meant that I had almost all of my tax credits for the year remaining?

    Bleurgh.

    I've sent off a request for a P21 (balancing statement) so we'll see what that brings.


  • #4
    mattDL
    Closed Accounts Posts: 37 ✭mattDL


    Unemployment Benefit and Disability benefit are taxable. This link should help.
    http://www.welfare.ie/foi/ub_unempben.html#part13


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