Category: PAYE

Employee Expenses

April 29, 2013

The claiming of expenses as a tax deduction against PAYE income is almost impossible. Before an expense will be allowed for tax relief it must have been incurred wholly, exclusively and necessarily in the performance of the duties of employment. This is why there is no tax relief for the costs of travelling to and from work or for normal clothing, cost of lunch etc.

To compensate for this the Revenue has an agreed flat rate expenses allowance for certain categories of employment which is automatically allowed to you. There is no need to produce receipts etc in support of your claim. There is a full listing of the agreed amounts on the tax return section of our website. If you are employed in one of the qualifying categories you should check to ensure that the appropriate allowance is being given to you. This is something that is often overlooked and can lead to sizable tax refunds being due.

e-Working and home workers

Where an employee works at home on a full or part-time basis they can receive an extra payment of €3.20 per day without deducting PAYE,USC or PRSI.

This payment is to cover expenses such as heating and electricity costs.

e-Working involves:

  • working for substantial periods outside the normal place of work
  • logging onto a work computer remotely or sending and receiving email, data or files remotely

 

 

Ceasing Work

April 29, 2013

If you give up work or are unemployed for a period of time you may be entitled to a tax refund for the particular tax year involved. This will depend on what other earnings you may have after ceasing work, e.g. social welfare benefits. You do not have to wait until after the end of the tax year to claim a refund. This can be done on an ongoing basis during the tax year by contacting your tax office.

People who work on a temporary basis e.g. students doing summer work may be entitled to a tax refund after they cease work. This refund can be claimed through your tax office. You will require a form P45 which your employer should have given to you when you ceased work. You send this to your tax office and they will deal with your refund claim.

Changing Jobs

April 29, 2013

When you leave your old job you should be given a form P45. This is a very important document. You give the P45 to your new employer who will then continue to operate PAYE in the normal manner and allow you your normal tax credits when calculating the tax you must pay.
The form P45 is also used by the Tax Office to track your change of employment and to issue new Tax Credit Certificates in your new employer’s name.

Starting Your First Job

April 29, 2013

If you do not have a tax PPS number you will need to obtain one from your local social welfare office. This involves completion of a simple form. Once you receive a PPS number you should then contact your local tax office who will require another relatively simple form to be completed so that they can issue you with a Tax Credit Certificate.

Form P60

April 29, 2013

This is the form you receive from your employer after the end of the tax year. Employers normally issue these forms in January or February after the end of the preceding tax year. It is a record of your pay and tax deducted for the tax year. You will need this form to claim tax refunds. In addition financial institutions look for these forms when applying for a mortgage as it is evidence of your income for the tax year.

The Form P60 also shows the gross pay for USC levy purposes and the amount of USC Levy deducted for the year.

Form P45

April 29, 2013

This is the form you receive from your employer when ceasing employment. It is a record of your pay and tax deducted for the tax year involved with that particular employer. You will need this form to claim Social Welfare benefits, Tax refunds or to give to your new employer when starting a new job.

Tax Credit Certificates

April 29, 2013

An employee obtains a Tax Credit Certificate from their Tax Office and the PAYE calculations are based on this certificate. This certificate contains details of your tax allowances and reliefs.

The tax credit certificate is a very important document, as the employer will calculate the monthly PAYE due based on your tax credit certificate. If this certificate is incorrect you may pay too much PAYE. The Tax Office are the only ones who can amend your tax credit certificate and it can only be done during the tax year.

If you think there may be an error on your tax credit certificate you should contact your local tax office immediately. You could be due a tax refund if you are not getting the correct tax credits. Alternatively if the tax office have over allowed your tax credits you could end up owing tax at the end of the tax year.

Pay As You Earn (PAYE)

April 29, 2013

As the name implies it’s a Pay As You Earn system of taxation. Employers are obliged to deduct tax from your earnings and pay it over to the Revenue on a monthly basis. The amounts due for PRSI (Pay Related Social Insurance) and the Universal Social Charge are also collected through the PAYE system.

Employee’s have to get a tax credit certificate form the tax office and this is the form that the employer uses to calculate your tax deductions.

What to do if you discover you are due a tax refund

April 29, 2013

If you are due a refund for any or all of the last four tax years you will have to complete a tax return for the year to claim your refund from the tax office.

Sign up to our website and our systems will generate a completed tax return form 12 which can be printed out for signing and posting to your tax office.

There is a flat fee for each tax year and all tax refunds go directly to you from the Revenue. We do not take any commission out of your tax refund.

PAYE Taxpayers (Intro)

April 29, 2013

Every year millions of euros remain unclaimed from the Revenue by PAYE Taxpayers. Why? Because people are not aware of their entitlements and the Revenue do not tell you if they owe you money. In fairness to the Revenue, they are not fortune tellers and if you do not tell them that you are due a certain tax credit they will not know about it. The responsibility is on your shoulders to ensure that you claim whatever you are entitled to. To allow you check your tax position we provide detailed information on the following:

How to find out if you are due a tax refund?
What to do if you discover you are due a tax refund
Pay As You Earn (PAYE)
Tax Credit Certificates
Tax Credit Certificates – How Do I Get One?
Tax Credit Certificates – What Happens if I do not have one?
Tax Credit Certificates – Basic Tax Credits
Form P45
Form P60
Starting Your First Job
Changing Jobs
What Happens If I dont have a Tax Credit Certificate or a Form P45?
Ceasing Work
Flat Rate Expenses Deductions
Ceasing Employment – Lump Sum Payments
How Share Options are Taxed
The Tax implications of emigrating from or immigrating to Ireland
PRSI – Universal Social Charge
What are Benefits In Kind (BIK)
Social Welfare Benefits

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