Case study Do I leave my tax credits as they are?

Discussion in 'Tax' started by MidlandsBase, 7 Jan 2019.

  1. MidlandsBase

    MidlandsBase Frequent Poster

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    179
    Hello,

    I'm an SNA with the following income:

    10 years services : €34,538 per annum salary
    Homework study group supervision : €3,300 per annum
    Exam Supervision €450 per annum

    Total : €38,188

    Tax credits : €3,300 per annum

    All tax credits are applied to the SNA job.

    As I am taxed at 40% above €35,300 is there any point is me requesting Revenue to re-allocate tax credits to the homework study group supervision job?

    Any advice would be great appreciated.
     
  2. vandriver

    vandriver Frequent Poster

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    1,730
    Tax credits,no.But is some of your standard rate band allocated to the homework job?
     
  3. MidlandsBase

    MidlandsBase Frequent Poster

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    179
    Hi Vandiver,
    Thanks for taking the time to reply. No. No allocations have been applied to the homework job.

    I'd welcome any advice you may have on what I should request revenue do based on the figures above.
     
  4. David1234

    David1234 Frequent Poster

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    128
    Are these incomes through different employers?

    If so, it would make sense to allocate the balance of €762 at the lower rate to the homework group. If you do nothing you will probably end up paying the higher 40% rate on this €762 but there will be a refund due at the end of the year
     
  5. MidlandsBase

    MidlandsBase Frequent Poster

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    179
    Hi David,

    Thanks for your reply. They are different employers alright. So I should request that €762 of my tax band should be applied to the homework supervision job?
     
  6. David1234

    David1234 Frequent Poster

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    128
    Yes, this will ensure you do not overpay tax throughout the year
     
  7. MidlandsBase

    MidlandsBase Frequent Poster

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    179
    Thanks very much for that David. Much appreciated.
     
  8. MidlandsBase

    MidlandsBase Frequent Poster

    Posts:
    179
    Hello All,

    Thanks for the replies which have helped alot. It would now seem because I'm going into an additional years of service that my SNA salary will now be €35,621 this year.

    10 years services : €35,621 per annum salary
    Homework study group supervision : €3,300 per annum
    Exam Supervision €450 per annum

    Total : €39,371

    Tax credits : €3,300 per annum

    All tax credits are applied to the SNA job.

    I presume given my increased salary there is no advantage in me moving bands around. I should just leave them as is for the coming year?

    Many thanks.
     
  9. David1234

    David1234 Frequent Poster

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    128
    It makes sense and is easier if you just leave them all with your main job.

    The homework group and exam supervision will be taxed at the higher rate so it's a personal decision to see if they are worth it as you will be taxed at roughly 50% on this income
     
  10. MidlandsBase

    MidlandsBase Frequent Poster

    Posts:
    179
    That would seem to make sense. Thanks very much for your response.