Tax free allowance and Tax Bands

guerngirl

Registered User
Messages
109
Hi, in 2010, what were the tax bands? also how much could you earn in 2010 without paying any tax? ie what was the tax free allowance before your salary started to get taxed? i'm trying to work out if i was overtaxed last year, as I only worked in ireland for three months, so may be due a refund. I'm married and we both work and are entitled to PAYE tax credit also. thanks
 
Sorry to hijack but I was wondering is this Married Allowance per partner i.e both Hubbie (€3,300) & Wife (€3,300) ?

Quote from Revenue
"Married Person €3,300"

Or is this allowance off both incomes where there are ?
 
thanks i had a look at this but i still dont quite follow, how do you knowv what your tax free allowance is? do you just work out your credits and thats the amount you can earn tax free?
 
There's no such thing as a tax free allowance any more. It works like this:

All of your income is taxed, first at 20%, then at 41% if you earn enough.
This gives a notional amount of tax. E.g if you earn 20k you would have notional tax at 20%, of 4k.
You then take your tax credit away from this notional figure to arrive at the actual amount of tax payable. So in my example, if you are a single PAYE worker you will have 3,300 of tax credit, so you subtract this from the notional tax of 4k, so you should pay 700 in tax.

So to answer your question, as a rule of thumb the amount you can earn before paying tax, is approximately 5 times your tax credits.