Tax paid at the high rate ?

[r2d2]

Hi All,

One of my friends recently left her job for a complete career change.....She was working in sales but is now working as a waitress. What she earned ytd has her now in the top tax bracket but do the revenue commissioners take into account the low amount she's earning now and take a month to month view or does she get hit based on calendar year earnings....?

Thanks,

r2d2

 

[Tenacious]

If ytd she has earned over €32,000 (presuming she's single and no children) then balance of income will be taxed at 42%. She may however pay less PRSI if her PRSI class changes.

 

[MsGinger]

Her tax credits in her old job would have been calculated monthly or weekly so she will still have her tax credits week to week and should pay a lot less tax than she was in her old job. If she is now earning a lot less than before, and has given her p45 to her new employer, she may even get tax back.