Help paye taxation

[paulacsteele]

I am a pay employee, i am from the uk and moved to work here in mid-feburary on a long term job as a vet, my gross wage is E40000/pa with occasional (2 this yr) bank holidays as extra pay (they totalled 461.40). We have a person in the office who deals with all the accounts and our payslips. The problem arose when she contacted me today to tell me some of decembers pay would be at the 41% tax rate; all along i had assumed part of my wages was coming out at 41% as my yrly wage is more than 36400. When i questioned her about this she informed me it doesn't work like that in ireland (unlike the UK) in ireland you use up your allowance per tax band and she can't tell me until she does decembers pay slip how much of my decembers income will be charged at 41%- by my calculations it should be most of it! Is it correct that all along my wage should only have been charged at 20% until i go over the threshold or should it have been spread out evenly over the 10.5 months of my working yr. I was working in the north until i started work down here. I know i now have to pay all this tax in dec as there is no other option but i'm just wondering if for next yr there should be another option, and if it should have been done that way this year- as according to her there is no other way. To date I have been paid 28734.91 gross (excl nov- due 3333.33) and my lasy payslip said 30333.33 but this seems to change each payslip.

Thanks for all your help.

 

[DB74]

The person in the office is wrong

Everyone gets a cut-off which determines how much salary per month can be earned at the low rate with the balance at the high rate. For a single person this amount is normally €3,033.33 per month (€36,400 / 12 months)

 

[Nige]

But as the Irish system works on a cumulative basis and the OP started here in mid-February, it could just be that his Standard Rate Cut Off Point is only being reached this month.

 

[DB74]

But as the Irish system works on a cumulative basis and the OP started here in mid-February, it could just be that his Standard Rate Cut Off Point is only being reached this month.

That doesn't really make sense though

You don't reach a point in, say mid-Oct, when your cumulative gross salary reaches the €36,400 figure so everything you earn from Oct-Dec is taxed at 41%.

 

[Nige]

but the OP said that he was told that "some of December's pay would be taxed at 41%", not all of it.