{"id":11266,"date":"2024-03-28T15:58:22","date_gmt":"2024-03-28T13:58:22","guid":{"rendered":"https:\/\/seoblog.taxback.com\/?p=11266"},"modified":"2024-12-10T16:16:28","modified_gmt":"2024-12-10T14:16:28","slug":"emergency-tax-how-do-i-avoid-it","status":"publish","type":"post","link":"https:\/\/www.taxback.com\/blog\/emergency-tax-how-do-i-avoid-it\/","title":{"rendered":"Emergency Tax – How Do I Avoid It?"},"content":{"rendered":"

You start a new job. Great!<\/p>\n

Your first paycheck arrives\u2026 Happy days!<\/p>\n

Now, your jaw hits the floor because you’ve been\u00a0EMERGENCY TAXED.<\/p>\n

However, there’s no need to panic.<\/p>\n

This is a largely avoidable situation.<\/p>\n

So keep reading if you don’t want to get stung with emergency tax and\u00a0how to claim tax back<\/a>.<\/p>\n

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How do I know if my income is subject to emergency tax?<\/h2>\n

Whether you\u2019re starting a new job, entering the workforce or returning to work after a long absence, there are ways to ensure you don\u2019t get taxed on an emergency basis.<\/p>\n

You will know if you have been emergency taxed by looking at your payslip.<\/p>\n

In the following example of a payslip, you can see that the employee has not provided their employer with their PPS number and therefore has been taxed on an emergency basis.<\/p>\n

\"Why<\/p>\n

Why am I being emergency-taxed?<\/h2>\n

If your employer has not received all of the important information that they need from you, they will tax you on an emergency basis.<\/p>\n

You will be taxed on an emergency basis if you haven\u2019t provided your new employer with your PPSN or if you haven\u2019t registered your new job with Revenue.<\/p>\n

What’s the best way to avoid it?<\/h2>\n

However, there\u00a0are ways to avoid it, such as giving your\u00a0PPS number\u00a0to your new employer as soon as possible.<\/p>\n

This number can be found on tax documents or communications from a social welfare or tax office. It may also be on your payslips from previous employment.<\/p>\n

If you don’t know your PPS number, you can contact the Department of Social Protection (DSP). If you can\u2019t supply your PPS number, your new employer will deduct tax on an emergency basis.<\/p>\n

Under the normal emergency tax rules, if you\u2019ve given your PPS Number to your employer, you get a tax credit and rate band for your first weeks of employment.<\/p>\n

These are based on the Single Person Tax Credit and rate band for the tax year (whether you\u2019re single, married or in a civil partnership). So your income is taxed at the standard rate until week 8 and then it\u2019s taxed at the higher rate.<\/p>\n

Where you can\u2019t supply a PPS number, your employer is obliged to calculate your tax at a higher rate with no tax credit.<\/p>\n

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\n\t\t\t\t\tWondering what Tax Credit Certificate and PPS Number mean? Read Our Bullsh*t-Free Guide to Irish Tax\t\t\t\t<\/h5>\n\t\t\t\n\t\t\t
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