Just noticed this yesterday and will be relevant to anybody who had a baby in the latter 8 months of 2009.
An example would best explain it
A woman earns a gross salary of €36,000 per annum
Jan-Apr 2009 she pays Income Levy of €120 (€3,000 x 4 months x 1%)
May-Jun 2009 she pays Income Levy of €120 (€3,000 x 2 months x 2%)
She has a baby on 01-Jul-09 and doesn't return to work until Jan-2010
She doesn't receive any money from her employer while on maternity leave
As the Income Levy is calculated on a composite basis @ 1.67% for the year, she has now effectively underpaid her income levy by €60, calculated as €18,000 @ 1.67% = €300 LESS the €240 already paid in first 6 months leaves her €60 short in Income Levy
It actually works out worse if the employer paid a portion of her salary but that portion was under the monthly Income Levy threshold
Is there any Revenue concession to account for this as it clearly isn't the woman's fault that she has earned no income in ther latter half of the year?
An example would best explain it
A woman earns a gross salary of €36,000 per annum
Jan-Apr 2009 she pays Income Levy of €120 (€3,000 x 4 months x 1%)
May-Jun 2009 she pays Income Levy of €120 (€3,000 x 2 months x 2%)
She has a baby on 01-Jul-09 and doesn't return to work until Jan-2010
She doesn't receive any money from her employer while on maternity leave
As the Income Levy is calculated on a composite basis @ 1.67% for the year, she has now effectively underpaid her income levy by €60, calculated as €18,000 @ 1.67% = €300 LESS the €240 already paid in first 6 months leaves her €60 short in Income Levy
It actually works out worse if the employer paid a portion of her salary but that portion was under the monthly Income Levy threshold
Is there any Revenue concession to account for this as it clearly isn't the woman's fault that she has earned no income in ther latter half of the year?