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

  • 28-06-2024 9:44pm
    #1
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭


    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



Comments

  • #2
    blackbox
    Registered Users, Registered Users 2 Posts: 4,709 ✭✭✭blackbox


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



  • #3
    y0ssar1an22
    Registered Users, Registered Users 2 Posts: 17,750 ✭✭✭✭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.



  • #4
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭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.



  • #5
    Geuze
    Registered Users, Registered Users 2 Posts: 14,039 ✭✭✭✭Geuze


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



  • #6
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭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



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  • #7
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭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 ??????????????



  • #8
    Madd002
    Registered Users, Registered Users 2 Posts: 362 ✭✭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.



  • #9
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭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.



  • #10
    Madd002
    Registered Users, Registered Users 2 Posts: 362 ✭✭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.

    Screenshot_20240628_234806_Samsung Internet.jpg



  • #11
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭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



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  • #12
    Geuze
    Registered Users, Registered Users 2 Posts: 14,039 ✭✭✭✭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?



  • #13
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭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



  • #14
    Madd002
    Registered Users, Registered Users 2 Posts: 362 ✭✭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.

    Screenshot_20240629_154525_Samsung Internet.jpg

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



  • #15
    Balmed Out
    Registered Users, Registered Users 2 Posts: 4,730 ✭✭✭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.



  • #16
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭irishgal21


    Hi all, Just an update and another question.
    So we are now jointly assessed correctly. Tax band up to 84,000 at 20% 33,000 + 51000 as you guys mentioned earlier , should be happening.
    Both mine and my spouses tax credit certs have changed to show 84,000, and my wages have increased significantly.
    This has defo benefitted us as now we now never hit the 40% tax bracket, where as before, my spouse did pay some tax at 40%.

    However both TCC now say week1 /month1 basis. I asked revenue why are we still on week1 now.

    Response was
    You are on a week1 due to your spouse no longer having the home carer tax credit,week1 is applied to avoid underpayment of taxes been collected through payroll.

    Now doesn't this work both ways ? Cumulative would mean an immediate refund of overpayed taxes ?

    So should I direct revenue to change from week1 to cumulative for us both , therefore receiving very likely payment back from revenue in the next payslip, or do I leave it for the rest of the year as week1?

    We would prefer anything owed ASAP .

    Thx for any feedback.



  • #17
    CramCycle
    Moderators, Sports Moderators Posts: 25,531 Mod ✭✭✭✭CramCycle


    https://www.boards.ie/discussion/comment/122374846#Comment_122374846

    This I don't understand and you may want to review your last few years and get a balancing statement but unless your wages have suddenly dropped, you should never have hit the 40% if jointly assessed previously.

    This has defo benefitted us as now we now never hit the 40% tax bracket, where as before, my spouse did pay some tax at 40%.



  • #18
    irishgal21
    Registered Users, Registered Users 2 Posts: 32 ✭irishgal21


    Hiya and Thanks. You misunderstand. we have been jointly assessed for years but I havn not been working. Hence my spouse was getting home carers tax credit. You can either get the Home carers credit OR up the rate to 84,000 if BOTH ar enow working. . you can't get the credit and the increased rate band , its one or the other.

    All seems to be in order now except the fact that we are both on week 1. I'd rather cumulative so that any moneys owed to us over the last 2 months ( which there must be ) , get refunded immediately rather than at the end of the year.



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