The average Irish tax refund is \u20ac1,880<\/strong><\/p>\r\n GET YOURS NOW<\/a><\/p><\/strong><\/p>\n\n Pay As You Earn Tax (PAYE) is charged on the basis of your gross income. It\u2019s calculated based on your yearly tax credits and income tax rate band.<\/p>\n 1. Cumulative basis<\/strong><\/p>\n In this instance, your yearly tax credits and income tax rate bands are evenly distributed over the course of the tax year.<\/p>\n 2. Non-Cumulative basis<\/strong><\/p>\n This means your annual tax credits and income tax rate bands come into effect from the date of the Tax Credit Certificate<\/a>\u00a0(TCC) and don\u2019t go back to the start of the tax year.<\/p>\n 3. Month One\/Week One & Emergency Basis<\/strong><\/p>\n Tax may be may be deducted on a week 1 or month 1 basis or on an emergency tax rate basis.<\/p>\n Pay Related Social Insurance (PRSI) is paid by employees aged between 16 and 66 years with very few exceptions. Your employer deducts this from your pay and makes PRSI payments on your behalf.<\/p>\n It\u2019s calculated as a percentage of your earnings and is allocated to the Social Insurance Fund. These contributions may give you an entitlement to claim monetary benefits such as Jobseeker\u2019s Benefit, Illness Benefit, State Pension, etc.<\/p>\n The Universal Social Charge (USC) replaced the health and income levy in January 2011 and you\u2019ll pay this if your income is more than \u20ac12,012 per year (2016). USC is taxable on gross income (this also includes any additional pay such as Benefit-in-Kind and is calculated before any relief for certain capital allowances).<\/p>\n In some cases, there may be an overpayment of USC, which Taxback can check for when you apply for your PAYE tax refund<\/a>.<\/p>\n Each time you\u2019re paid, your employer applies PAYE and USC tax based on information from Revenue on your employee tax credit certificate. If Revenue doesn\u2019t have up-to-date information on your personal circumstances (marital status, dependents, etc.), this could result in the incorrect allocation of tax bands and credits.<\/p>\n So for example, if you get married or enter into a civil partnership, you should inform Revenue as quickly as possible because you could end up paying more tax than you need to!<\/p>\n The average Irish tax refund is \u20ac1,880<\/strong><\/p>\r\n GET YOURS NOW<\/a><\/p><\/strong><\/p>\n <\/p>\n Below is an example of a standard PAYE payslip explaining each of the important terms.<\/p>\n If you\u2019re a PAYE employee, you may be able claim tax back on certain expenses under qualifying conditions including:<\/p>\n Tip<\/strong>: Always keep your receipts!<\/p>\n In some cases, it can be mutually beneficial to get hitched as married couples<\/a> and civil partners may be able to transfer unused tax credits to each other; this is never a bad thing! Being jointly assessed lets you transfer tax credits and standard rate cut-off points to suit your particular circumstances. In some cases, this could be beneficial to your tax position!<\/p>\n If you get married\/enter a civil partnership, you should contact your local Revenue office with the date of registration and your PPS numbers.<\/p>\n An underpayment of tax could happen if you\u2019ve been wrongly allocated tax credits. Revenue will seek reimbursement over the following year by making an adjustment to your tax credits.<\/p>\n What does that mean?\u00a0<\/strong><\/p>\n Your take-home pay will be reduced until the underpayment is settled. If Revenue fails to notice underpayments for several years, you could be faced with a much higher tax bill.<\/p>\n What can you do?<\/strong><\/p>\n If your tax credits are higher or lower than what they should be, request a copy of your tax credit certificate from Revenue and check if any adjustments should be made.<\/p>\n If you\u2019re a PAYE worker – receptionist, nurse, teacher, etc. you may be entitled to a refund of some of the tax you paid during the year.<\/p>\n You could claim tax back if:<\/strong><\/p>\n If you think you\u2019ve overpaid tax, you should visit Taxback<\/a><\/p>\n There are certain taxes that you can\u2019t claim back.<\/p>\n Examples:<\/strong><\/p>\n To find out exactly what you can and can\u2019t claim, email info@taxback.com.<\/p>\n When you get your next payslip, see what it says for your monthly\/weekly tax credit and cut-off point. Multiply this by 12 or 52 to calculate your annual tax credit and cut-off point.<\/p>\n Every individual in PAYE employment is entitled to a PAYE\u00a0credit of \u20ac1,650<\/p>\n Taxback got tax refunds for 322,000 people last year.<\/p>\n1. PAYE Defined<\/h2>\n
It can be calculated in 3 ways:<\/h3>\n
2. PRSI (Pay Related Social Insurance)<\/h2>\n
3. Universal Social Charge<\/h2>\n
![\"Universal](\"https:\/\/taxback.com\/blog\/wp-content\/uploads\/2024\/05\/Universal-Social-Charge.jpg\")
<\/p>\n4. How is your tax calculated?<\/h2>\n
5. Your payslip explained<\/h2>\n
![\"Your](\"https:\/\/taxback.com\/blog\/wp-content\/uploads\/2024\/05\/Your-payslip-in-Ireland-explained.jpg\")
<\/p>\n6. Tax Reliefs<\/h2>\n
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7. Married Couples<\/h2>\n
![\"Married](\"https:\/\/taxback.com\/blog\/wp-content\/uploads\/2024\/05\/Married-Couples.jpg\")
<\/p>\n8. Underpayment of tax<\/h2>\n
9. Overpayment of tax<\/h2>\n
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10. Taxes you can’t reclaim<\/h2>\n
![\"Taxes](\"https:\/\/taxback.com\/blog\/wp-content\/uploads\/2024\/05\/Taxes-you-cant-reclaim.jpg\")
<\/p>\n\n
11. Calculating your tax credits<\/h2>\n
Most common tax credits\/cut-off points:<\/h2>\n\n
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\n\t Income<\/strong><\/th> Tax credit due<\/strong><\/th> Restriction of tax credit<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n \n\t \u20ac7,200<\/td> \u20ac1,000<\/td> Nil - The full tax credit is due<\/td>\n<\/tr>\n \n\t \u20ac7,450<\/td> \u20ac875<\/td> \u20ac7,450 - \u20ac7,200 = \u20ac250 \u00f7 2 = \u20ac125<\/td>\n<\/tr>\n \n\t \u20ac7,950<\/td> \u20ac625<\/td> \u20ac7,950 - \u20ac7,200 = \u20ac750 \u00f7 2 = \u20ac375<\/td>\n<\/tr>\n \n\t \u20ac8,200<\/td> \u20ac500<\/td> \u20ac8,200 - \u20ac7,200 = \u20ac1,000 \u00f7 2 = \u20ac500<\/td>\n<\/tr>\n \n\t \u20ac8,450<\/td> \u20ac375<\/td> \u20ac8,450 - \u20ac7,200 = \u20ac1,250 \u00f7 2 = \u20ac625<\/td>\n<\/tr>\n \n\t \u20ac8,700<\/td> \u20ac250<\/td> \u20ac8,700 - \u20ac7,200 = \u20ac1,500 \u00f7 2 = \u20ac750<\/td>\n<\/tr>\n \n\t \u20ac8,950<\/td> \u20ac125<\/td> \u20ac8,950 - \u20ac7,200 = \u20ac1,750 \u00f7 2 = \u20ac875<\/td>\n<\/tr>\n \n\t \u20ac9,050<\/td> \u20ac75<\/td> \u20ac9,050 - \u20ac7,200 = \u20ac1,850 \u00f7 2 = \u20ac925<\/td>\n<\/tr>\n \n\t \u20ac9,200<\/td> 0<\/td> \u20ac9,200 - \u20ac7,200 = \u20ac2,000 \u00f7 2 = \u20ac1,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n 12. Tax facts<\/h2>\n
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13. Getting a refund<\/h2>\n
Why use Taxback?<\/h2>\n