Take home pay change (thought there were no tax changes this year vs 2011?)

Hi,

Just a quick question, almost everything from my last payslip in 2011 is the exact same as this, my first payslip in 2012, the onlydifference being my BIK (Healthcare) has increased by 36.50 per week, yet my take home pay has decreased by 26 euro per week. The increases are across tax, PRSI and USC - is anyone else seeing a decreas when circumstances havent changed since last year.

I know my BIK has changed but surely a BIK of 36.50 per week should not result in 26 euro less take home pay, that is 71%!

If anyone could throw some light on this, it would be much appreciated.

Someone elses circumstances in here haven't changed at all and they are seeing 10 per week less

Thanks

I can't remember what way this works any more but in the past there was an annual PRSI (or health levy?) threshold which, when reached, meant that you could end up paying less in these deductions at the end of the year versus the start of the next year. Could this be a factor here?

Have your tax credits changed?

Might be easiest to post your December 2011 and January 2012 payslip figures to get a better idea of the differences.

Do you pay into an occupational pension ? The rules for USC being charged on this has changed. The change came in last year but was not 'defined' correctly till late November. Don't ask me to explain the exact nature of it but basically it meant that your pension contribution was less tax free than last year.

By the way - and increase of c. €2K p.a. in your VHI!?!? Yikes....

Anyway - you might be able to make sense of your payslips using one of the online tax calculators that will give you a month by month breakdown for 2011 and 2012 (which I think that some or all of the following support)...

http://taxcalc.eu/ (the detailed spreadsheet version rather than the simplified Java version)



http://www.pwc.com/ie/en/budget

do you claim rent tax relief? - it has been reduced (also you have to re-claim it each year)

Maybe check your 2011 and 2012 credits on the Revenue PAYE Anytime system? If not already registered then I think it takes a few days to get your PIN posted out.

Thanks for your replies, much appreciated. The health insurance increase was as a result of an admin cock up whereby my wife and 2 kids weren't actually covered last year (I only noticed when renewing benefits in November for 2012!) - good job they didnt need to use it!

So for that, I am actually bringing home what I should have been last year.

I dont claim rent relief (home owner along with the bank!) but I have noticed that while the cut off point has remained the same my tax credits have reduced by 12 euro - is this a result of BIK or occupational pension?

Thanks in advance

Compare your 2011 and 2012 statements of tax credits or get onto the PAYE Anytime system.

scarednow said:

I dont claim rent relief (home owner along with the bank!) but I have noticed that while the cut off point has remained the same my tax credits have reduced by 12 euro - is this a result of BIK or occupational pension?

Click to expand...

Did you previously have a tax credit for service charges? This has stopped from [broken link removed].

Also if you fill in a form 12 or 11 for other income they don't give you the health insurance tax credit automatically. You need to re-apply for it.