Should I pay taxes?

italo

Hello, I have a question about taxation.

I am an Italian Citizen who have been living in Ireland since Feb 2013. I have worked full time as an accountant since that year until August 2017 when I left my job to pursue a full time education - which will finish at the end of this month. I have requesed a P21 related to 2017 so I believe my taxes are ok for that year.

I have not worked this year so didnt earn anything (have been living on my savigs) so I am wondering if I should pay any taxes or if I should fill any tax-related form on the following two scenarios:

1) assuming I return to work this year after my studies are complete.
2) assuming it takes me a little longer to find a new job and I only start working in 2019 (I'm actually chanign fields so this may be the case).


Any help is really apreciated
Thanks very much

namenotavailablE

If you secure a job in 2018, whether or not you'll have a tax liability will depend primarily on your earnings from that job. Make sure that you submit your PPSN to your new employer and advise the tax office of your new employment.

If starting in 2019, it's more likely that you'll be liable assuming that you start earlier in the year.

Check my Excel calculator linked in my signature for some possible assistance.

italo

Hi, thanks for your reply.
I didnt understand this part:

namenotavailabl wrote: »

If starting in 2019, it's more likely that you'll be liable assuming that you start earlier in the year.

does it mean I dont have to do anything in relation to taxes on 2018?

Thanks

namenotavailablE

If you secure employment in 2018, there's a possibility that you will be on a 'Week 1/ Month 1' basis. This means that you won't get a full year's tax credits and standard rate band- depending on your earnings in 2018, you may/ may not be paying more tax than necessary. That's what I meant by the 2018 comment.

Regarding 2019, I'm assuming that in this second scenario you aren't working in 2018 (the scenario 2 in your original post) and that you start working early on in 2019 (say in January or February). Under this second scenario, you should get a full year's credits and standard rate band so assuming that these values are correctly applied in calculating your net salary you are unlikely to have any additional liability over and above whatever is deducted from your salary. Obviously, in this second scenario where you weren't earning anything in 2018 and didn't have any tax liability for that year, you wouldn't need to do anything about that year's tax matters.