Why tax rate keeps changing?

M

masterboy123

Registered User
Messages
440
Hello everyone,

I don't understand why my netpay is lower this time, given the fact I actually worked more hours this time. Can anyone please advice? Here are the payslip details:
27 February Payslip:-
Basic Pay (78 hours) - 1488.70/-
Accomodation allowance - 267.54/-

PAYE - 64.36/-
PRSI - 70.25/-
USC - 85.23/-
Pension Levy - 103.51/-
Pension - 64.52/-

Total Deductions - 387.87/-
Net Pay - 1368.32/-


13 March Payslip:-
Basic Pay (85.50 hours) - 1637.57/-
Accomodation allowance - 110.16/-

PAYE - 187.26/-
PRSI - 69.91/-
USC - 96.14/-
Pension Levy - 102.66/-
Pension - 74.20/-

Total Deductions - 570.17/-
Net Pay - 1217.56/-

I noticed in March payslip, the PAYE is significantly higher, what can be the reason?
And also, the accomodation allowance is lower in March.

Anyone have idea why I end up paying more tax this time? How can i avoid such high tax rate? I am married with no child.
I get paid fortnightly.

Annual tax credit 3300/-
Annual cut off point 41800/-

Thanks everyone!
 
You are taxed on a cumulative basis so you have to look at the situation in prior weeks to get the full picture. You were on emergency tax in previous weeks so on 27 Feb got a refund of tax overpaid in prior weeks.

In the current week your gross income is €1747, the pension is deducted from that €176 giving you a taxable income of €1,571 multiply that by 20% gives you €314 less your tax credits (3,300 / 26) of €127 leaves you with a PAYE bill for the fortnight of €187. This will be the basis going forward unless your overtime brings your cumulative taxable earnings above your standard rate cut off point when the excess will be subject to 41% income tax.
 
Ok, so am I supposed to pay around 550 euros every 2 weeks as taxes?
I am married person and my wife is working also at minimum wage. My annual cut off point is 41800 @ 20%.

Pardon my ignorance, this is my first job in Ireland and i am not sure of taxation system here.
Is there any way in which I can reduce the taxes by transfering tax credits from my wife or so?
Many thanks

Joe_90 said:
You are taxed on a cumulative basis so you have to look at the situation in prior weeks to get the full picture. You were on emergency tax in previous weeks so on 27 Feb got a refund of tax overpaid in prior weeks.

In the current week your gross income is €1747, the pension is deducted from that €176 giving you a taxable income of €1,571 multiply that by 20% gives you €314 less your tax credits (3,300 / 26) of €127 leaves you with a PAYE bill for the fortnight of €187. This will be the basis going forward unless your overtime brings your cumulative taxable earnings above your standard rate cut off point when the excess will be subject to 41% income tax.
Click to expand...
 
Well,

If your wife earns more than €16,500 then if you take her credits she will pay more tax. I don't know about your pension levy contributions someone else may state if they are correct but your PAYE/PRSI/USC are correct not much you can do about them.
 
thanks,
well she is earning about 14000 annually. is it advisable to transfer some of her credits? although in the revenue form i filled myself as the assessible spouse...

Joe_90 said:
Well,

If your wife earns more than €16,500 then if you take her credits she will pay more tax. I don't know about your pension levy contributions someone else may state if they are correct but your PAYE/PRSI/USC are correct not much you can do about them.
Click to expand...
 
Well it depends on her attitude. If you take some of her credits circa €500 and she picks up some extra work she will pay tax @20% on it.

You can recover any overpayment at the end of the year might be a better bet than taking her credits during the year.
 
ok i appreciate your advice.
will follow the latter option i.e. to recover overpayment at the end of the year.

Happy St. Patricks Day!

Joe_90 said:
Well it depends on her attitude. If you take some of her credits circa €500 and she picks up some extra work she will pay tax @20% on it.

You can recover any overpayment at the end of the year might be a better bet than taking her credits during the year.
Click to expand...
 
You must log in or register to reply here.
Back
Top