2nd job and tax credits

dijkm88

Hi all,

I am not fully sure if I understand the tax system in Ireland correctly.

I am working fulltime 40 hours a week, and currently my tax credits are applied to this job.

Next to this, I recently started a part-time job in the evening, mostly thursday to Sunday 4 hours a night.

I just logged into my account on revenue, and seen the following:
My second job, getting no credits at all, and it mentioned this as well:
This denotes that this employment Tax Credit Certificate was issued on a Week 1/Month 1 basis.

Now, I am earning 30k in my full-time job, so what should I do know to get the right taxes and so on.

I don't fully understand the week1 basis....

OMM 0000

So basically Revenue told your second employer (the part-time one) to tax you on a Week 1 basis.

Week 1 roughly means "his pay might change week to week, so ignore all the other weeks when taxing him, and just tax him based on this weeks earnings only".

The fact the Revenue are saying this makes me think it is correct.

You could give Revenue a ring to confirm: https://www.revenue.ie/en/contact-us/index.aspx

dijkm88

OMM 0000 wrote: »

So basically Revenue told your second employer (the part-time one) to tax you on a Week 1 basis.

Week 1 roughly means "his pay might change week to week, so ignore all the other weeks when taxing him, and just tax him based on this weeks earnings only".

The fact the Revenue are saying this makes me think it is correct.

You could give Revenue a ring to confirm: https://www.revenue.ie/en/contact-us/index.aspx

thanks so much for your reply.
Yes, the hours aren't always the same...

But I read on revenue.ie that I could allocate the amount that's left, as I only earn 30k, to allocate that to my 2nd job.

How am I going to get taxed then on the 2nd job? Will all be 40%?

OMM 0000

I'm assuming you're single. Your tax should be up to €34,550 at 20%, the rest at 40%.

Source: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

If you overpay tax, you can claim it back at the end of the year.

namenotavailablE

One suggestion (but whether it suits you is for you to decide and (ideally) you'll need to have a rough idea of the annual earnings from your second job) is to do the following:

1. Ask the Revenue Commissioners to transfer the lower of the unused amount of your 'standard rate band' (4550) or your anticipated annual earnings from the second job. For example, if you reckon that your second job will €4000, transfer that value. If you reckon that it will earn you €6000, transfer €4550. It depends on your estimate of the annual earnings of the second job.
2. Also request that they transfer 20% of the above amount from your annual tax credits to the second employment.

The idea is that you'll end up paying zero (or close to zero) tax on your second job (there may be USC to pay). However, be aware that the net income from your 'main job' will drop due to the transfer of tax credits (particularly in the next pay period after you make any transfer), so it's up to you to decide what to go with.

dijkm88

namenotavailabl wrote: »

One suggestion (but whether it suits you is for you to decide and (ideally) you'll need to have a rough idea of the annual earnings from your second job) is to do the following:

1. Ask the Revenue Commissioners to transfer the lower of the unused amount of your 'standard rate band' (4550) or your anticipated annual earnings from the second job. For example, if you reckon that your second job will €4000, transfer that value. If you reckon that it will earn you €6000, transfer €4550. It depends on your estimate of the annual earnings of the second job.
2. Also request that they transfer 20% of the above amount from your annual tax credits to the second employment.

The idea is that you'll end up paying zero (or close to zero) tax on your second job (there may be USC to pay). However, be aware that the net income from your 'main job' will drop due to the transfer of tax credits (particularly in the next pay period after you make any transfer), so it's up to you to decide what to go with.

Thanks so much!! Really appreciate your help.

Well, the hours are not always the same, but roughly I could calculate what I earn etc.
My main job (fulltime) is on a set pay, so I have credits left after the year.. I am still not fully sure how to go about dealing with this, just so I know I am doing the right thing..

I don't want to pay a massive amount of taxes owed at the end of the year to Revenue, that's why I want to get this sorted...

What do you think would be best then? My main job, is 30k, and that does not increase or decrease.. I am getting a month salary and not an hourly rate as it's the case in my second job....


Michaerl

marty whelan

Namenotavailabl is correct. Ring revenue and ask them to transfer 4000 of your tax band to your new job. Transferring your credits won't help you.

Ensure that you request a p12 from revenue next year to make sure they have done it properly. While you're on the phone to revenue ask them to issue p12's for last 4 years as well.

Additionally, look up flat rate expenses online and see if any apply to new or old job. If they do, ask revenue to apply them for last 4 years