Single, Paye, up to 18k not taxed in one year?

[paperclip]

Hi, is it true that if I only earn 18k in one tax year... I pay no tax?

Say, for instance, I was to work for half the year... and then not work... and only earn 18k... is it a case that I pay tax... but, then need to wait til the end of the year to claim the tax back?

Cheers.

 

[ClubMan]

Hi, is it true that if I only earn 18k in one tax year... I pay no tax?

Yes:

http://www.citizensinformation.ie/e...me_tax/how_your_tax_is_calculated.html#l23f7d

Not sure if you still face other deductions such as USC, PRSI etc.

Say, for instance, I was to work for half the year... and then not work... and only earn 18k... is it a case that I pay tax... but, then need to wait til the end of the year to claim the tax back?

If/when you become unemployed you can stick in a P50 claim for a tax refund:

http://www.revenue.ie/en/personal/popular-forms.html

Is this an academic query or are you actually considering this as there may be other implications - e.g. where are you going to get such casual employment, impact on PRSI contributions.

 

[Joe_90]

The exemption applies to people over 65.

If you qualify for the PAYE Cr and Single Cr = 3,300 / 20% = €16,500 would be exempt.
PRSI at 4% over €127 per week.
USC as normal.
Remember you can't claim unemployment benefit as that would push up your income.

 

[ClubMan]

Sorry - Revenue site was not clear on the exemptions that apply to different ages/circumstances!

 

[paperclip]

The exemption applies to people over 65.

If you qualify for the PAYE Cr and Single Cr = 3,300 / 20% = €16,500 would be exempt.
PRSI at 4% over €127 per week.
USC as normal.
Remember you can't claim unemployment benefit as that would push up your income.

Thanks Joe.

So... I can earn, in one tax year, €16,500, tax free?

I don't understand the PRSI part.... do I still pay this if I earn under €16,500?

What is USC?

Thanks.

 

[huskerdu]

Thanks Joe.

So... I can earn, in one tax year, €16,500, tax free?

I don't understand the PRSI part.... do I still pay this if I earn under €16,500?

What is USC?

Thanks.

You pay PRSI per week, so if you earn 16,500 in a year, but you earned it all in 6 months, your weekly earnings would be 634, so you would pay PRSI.

http://www.citizensinformation.ie/e..._insurance_prsi/social_insurance_classes.html

USC is univeral social charge

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/universal_social_charge.html

If you are embarking on work for the first time, I would strongly suggest that you read te relevant pages of www.citizensinformation.ie.
Its well written and will tell you all you need to know.