Taxed at 40% instead of 20% ? PAYE - Partner has just gone back to work.

irishgal21

Looking for some help with my calculations.

PAYE - Partner has just gone back to work.

My partner has just gone back to work ( 2 months ago ) after about 15 years of looking after the children.
We seem to be still getting taxed too much.
I've been in touch with tax office but still no change.

Married couple
2 incomes
Jointly assessed
Tax at (20%) should be income up to 84,000 for a married couple with 2 incomes.
Our joint income is around 70,000.
Partners weekly Gross income €460

460 x 20% = €92
deduct tax credit €36.06 = €55.94
Tax Payable €55.94

Yet Partner was taxed €147.94 (which is what 40% would produce)

So , to me , My partner is being taxed at 40% not 20 %
Pertners tax credit cert says income taxable at 20% 51,000 , income taxable at 40% all income over 51,000

Shouldn't the cert say 81,000 if we are being jointly assessed ?
Shouldn't my partner only be taxed at 20% until we jointly earn over 81,000 ?

We've always been jointly assessed but looks now like she is being asses seperately ?

Thanks for any help

R

blackbox

She might still be on emergency tax. Her employer should be able to advise.

y0ssar1an22

on payslip it should say what tax type is being applied (cumulative, week 1, emergency). as mentioned above, i would guess emergency.

ask employer for P2C which will give all the details tax credits, bands including USC. that way at least you know what the issue is.

i'd say the employee registration is not yet live on revenue.

alternatively, have a look at your own payslip as you may be using partners credits and cut off.

irishgal21

https://www.boards.ie/discussion/comment/122316121#Comment_122316121

The employer has said the following to me. ( 1 month ago )

"Ask revenue to assign some tax credits and cut off to you for the rest of the year to put you back in the 20% tax bracket."

So was onto the tax office a month ago with above info. we now have tax credits. but looks t me like 20% tax bracket has not happened.

Still no change in tax rate . but we did receive a tax credit cert for partner after we got in touch which mentions rate band up to 51,000.

How long do you stay on emergency tax.

shouldn't a call to tax office 1 month ago have helped get us off emergency tax ?

thx.

Geuze

Check the allocation of tax credits and the SRCOP in your Revenue account.

irishgal21

https://www.boards.ie/discussion/comment/122316161#Comment_122316161

Partner gets paid every 2 weeks. we have received 4 payslips so far

Payslip1 says TAXATION BASIS : Cumulative PRSI Class A0

Payslip2 says TAXATION BASIS : WEEK1 PRSI Class A0

Payslip3 says TAXATION BASIS : WEEK1 PRSI Class AL

Payslip4 says TAXATION BASIS : WEEK1 PRSI Class A1

irishgal21

https://www.boards.ie/discussion/comment/122316169#Comment_122316169

After contacting revenue 1 month ago letting them know Partner is now working we received new tax cert for partner

Personal tax credit self 0 , spouse 3,750

Employee tax credit 1,875 , spouse 1,875

Rate band 1

The amount of your income taxable at 20% is 51,000

All income over 51,000 is taxable at 40%

Shouldn't this cert say

The amount of your income taxable at 20% is 84,000 ??????????????

Madd002

Tax credits should be split as follows.

Personal tax credit you = 1875 Paye tax credit you = 1875

Personal tax credit spouse = 1875 Paye tax credit spouse = 1875

so both of ye should have 3750

So if you both earn 70k between ye you are both under the 51k for 20% & under the 84k for jointly assessed.

Looking at above payslip it says cumulative for first one & week 1 for the following 3, you should be on cumulative.

Now the other possibility is that because your husband only went back to work 2 months ago and we halfway through the tax year now you will prob get a refund at the end of the year.

You could ring them again and ask why that is.

irishgal21

https://www.boards.ie/discussion/comment/122316259#Comment_122316259

Ok thanks, we are defo ringing them again this week. just wanted to make sure there is defo an issue here.

The maths says we are getting taxed at 40% but we should be taxed at 20% ( jointly assessed income is below 84,000)

Thx for your input.

Madd002

Sorry I said husband instead of wife your user name threw me off 😆

Definitely get back onto them as she has no personal tax credit. so that'll need to be fixed as her personal tax credit should be 72.12

You can ask them why she's on week 1 and ask to be moved to cumulative and a refund should issue in her next payslip.

irishgal21

https://www.boards.ie/discussion/comment/122316311#Comment_122316311

Hiya , and thx for the reply. She does have a tax credit of 72.12 , payslip 1 said 0 the rest said 72.12.

So after online myenquiry with revenue they sorted the tax credit. week1 looks to me like still on some form of emergency tax.

Home carers credit came into play too and they wanted to know likely yearly earning since anything over 10,800 means you can't get home carers credit , but you can now get the increased jointly assessed rate ban of 84,000.

What I think has happened is that they just haven't responded to the updated online query.

Probably best we both call them together, on the phone and sort in real time.

Thx again

Geuze

https://www.boards.ie/discussion/comment/122316230#Comment_122316230

I'm not sure, but check both tax credit certs.

One might refer to 51k, and the other person's Cert will refer to the other 33k?

irishgal21

https://www.boards.ie/discussion/comment/122316353#Comment_122316353

Hiya, both Tax certs say 51K , We will ring them this week . Ask them to remove Home carers credit , change to cumulative, and give us the Rate band 84,000. Thx

Madd002

https://www.boards.ie/discussion/comment/122316336#Comment_122316336

Sorry in your other post you have calculations below & tax cred shows 0 so I thought that's where it may be.

Anyhow you do need to contact them again & hopefully it all gets sorted soon.

Balmed Out

After checking myaccount to see that tax credits and bands assigned to job correctly double check with employer that they are using the lates RPN. If you make any slight adjustment a new one is issued by revenue.