When you start your first job, you should tell Revenue as soon as possible, or you may have to pay emergency tax. You must do this even if it is a part-time job or temporary job.
To do this, you must:
- apply for your Personal Public Service Number (PPSN), if you do not already have one. This is available from the Department of Social Protection (DSP).
- register for myAccount.
When you receive your myAccount password, you will be able to register your new job by clicking on the ‘Update job or pension details’ link in ‘PAYE Services’ (Pay as You Earn) in myAccount.
You may receive a Tax Credit Certificate (TCC) on the Week 1 basis (also known as the ‘non-cumulative basis’). This means that your employer will deduct Income Tax (IT) from your pay on a week-to-week basis. Your yearly tax credits and rate bands are not backdated to the 1 January and do not accumulate for each pay period. Your employer cannot make any refunds of IT that may be due to you until a ‘cumulated’ TCC is issued.
We issue Week 1 basis TTC for various reasons, for example, where:
- there is a large reduction in tax credits that may cause hardship
- there is a lack of information about prior employments or earnings in the current tax year
- people come form abroad to work in Ireland but we do not know how long they plan to stay in Ireland
- people transfer their tax credits and rate band to their spouse or civil partner
- employees do not want their new employer to know the details of their previous employments, pay and tax
Your IT is calculated on your ‘taxable pay’. This is the amount you earn after the pension and permanent health insurance contributions are deducted. There are examples of how IT is calculated in Calculating you Income Tax. To make sure that you do not pay too much too little IT, always check that your tax credits are correct.
Universal Social Charge (USC) are a charge in addition to IT and the deductions depend on the USC thresholds and rates that apply to you. There are examples of how to USC is calculated under ‘Calculating your USC’.
Pay Related Social Insurance (PRSI) are another charge addition to IT and the deductions depend on your PRSI class. For more information, see the DSP website.
To insure that you have paid the correct amount of tax and you have received the benefit of all you tax credits, your tax is normally calculated using the ‘cumulative basis’, which means that your tax credits and earnings from 1 January of that year are accumulated for.
If you get a benefit from your employer, such as a company car or meal vouchers, the value of those benefits is added to your earnings. Taxes are deducted from your earning for the value of those benefits.