revenue.ie : Calculating Weekly/ Monthly Tax Ireland

Name of the Organization : Irish Tax & Customs
Type of Facility : Calculating Weekly/ Monthly Tax
Country : Ireland

Website : http://www.revenue.ie/en/personal/faqs/how-do-i-work-out-my-tax.html

Calculating Weekly/ Monthly Tax:

Revenue issues a Certificate of Tax Credits and Standard Rate Cut-Off Point to every employee who makes a claim for tax credits. The certificate sets out in detail the amount of tax credits and standard rate cut-off point that Revenue has determined to be due to the employee.

Related : Revenue Irish Customs Local Property Tax Ireland : www.statusin.org/7099.html

In addition to issuing an employee certificate to each employee, Revenue also issues a notification to the employer. No information regarding the personal circumstances of the employee is disclosed on the employer’s notification. It shows only the total amount of the tax credits and standard rate cut-off point to which the employee is entitled together with the equivalent weekly and monthly figures.

What are Tax Credits?:
Under the tax credit system an employee is entitled to tax credits depending on personal circumstances e.g. married person’s tax credit, employee (PAYE) credit, Trade Union Subscriptions tax credit, etc. (see what tax credits you are entitled to claim).

How can I claim these tax credits?:
** You can claim via PAYE Anytime
** You can claim via your mobile phone
** You can contact us by telephone

What is my Standard Rate Cut-off Point?:
Your standard rate cut-off point is the amount of your personal standard rate tax band 20%. For each pay period, weekly, fortnightly or monthly, you pay tax at the standard rate of tax up to your standard rate cut-off point. Any income over your standard rate cut-off point is taxed at the higher rate 41%.

Example:
Ann has a weekly standard rate cut-off point of €680.77 and she earns €750 per week. This means that the first €680.77 of Ann’s wages is taxed at 20% and the balance €69.23 (€750 – €680.77) is taxed at the higher rate 41%.

How do I calculate my weekly tax figure?:
Your weekly tax figure is calculated as follows (if you are paid fortnightly or monthly the same principles will apply):
** Tax is calculated at the standard rate of 20% on your gross pay up to the amount of your weekly standard rate cut-off point
** Any balance of gross pay above the standard rate cut-off point is taxed at the higher tax rate of 41%
** The tax calculated at 20% is added to the tax calculated at 41% to arrive at your gross tax figure
** The gross tax figure is then reduced by the amount of your tax credits to arrive at your tax payable in that week

The following examples will illustrate how to calculate your tax liability.

Remember, these are only examples of Tax Credits and standard rate cut-off points. Your own personal amounts are printed on your most up-to-date Tax Credit Certificate.