2.  Budget – First week in December  Estimates – lobby groups prior to that

3.  www.revenue.ie www.revenue.ie  www.ros.ie www.ros.ie  www.welfare.ie www.welfare.ie  www.employmentrights.ie www.employmentrights.ie  www.citizensinformation.ie www.citizensinformation.ie

4.  First time employment  Employee must apply for a tax credit certificate  Form 12A  Emergency tax will apply until the cert is received by the employer

5.  Issued in Dec for new year  Employees responsibility  Contains: ◦ Employees name, address and PPS no ◦ Tax Credits and Standard Rate Cut-off Point ◦ Tax Rates ◦ Employer registration number

6.  The Revenue issues a summary to the employer without details of credits  Separate tax credit issued to each employer (if more than one employment)

8.  For the year.....indicates when it is valid for  Continue to use until an amended one is issued ◦ Employee supplies new information to the tax office ◦ Budget changes

9.  Standard rate 20%  Higher Rate 41%  Check www.revenue.iewww.revenue.ie

10.  A tax band is a fixed amount of taxable income that is taxed at the standard rate  Any taxable pay exceeding the band amount is taxed at the higher rate Personal StatusBands of Taxable Income in a Sample Tax Year Single/Widowed without dependant children €32,800 @20% Balance @ 41% Single/Widowed with dependant children €36,800 @20% Balance @ 41% Married Couple- one spouse income €41,800 @20% Balance at 41% Married couple – both spouses with income €41,800 @20% Balance at 41%

11.  Single without children  Earns €38,000  €32,800 @ 20% = €6,560  €5200 @ 41% = €2,132  Total Gross Tax = €8,692

12.  Single without children  Earns €44,000  €32,800 @ 20% = €  €11,200 @ 41% = €  Total Gross Tax = €

13.  The Standard Rate Cut-off Point is the same as the Band but the amount may be adjusted for any non-PAYE income or allowable expenses. This will be shown in the Tax Credit Certificate  The Cut-off varies from person to person.

14.  What is Standard Rate Cut-off Point?  A standard rate cut-off point is the amount of your personal standard rate tax band 20%. For each pay period, weekly, fortnightly or monthly, you pay tax at the standard rate of tax up to your standard rate cut-off point. Any income over your standard rate cut-off point is taxed at the higher rate 41%.  Your own personal amounts are printed on your most up-to-date Tax Credit Certificate – notified by revenue to your employer

15.  For each pay period, weekly, fortnightly or monthly, you pay tax at the standard rate of tax up to your standard rate cut-off point. Any income over your standard rate cut-off point is taxed at the higher rate 41%. Example:  Ann has a weekly standard rate cut-off point of €680.77 and she earns €750 per week. This means that the first €680.77 of Ann's wages is taxed at 20% and the balance €69.23 (€750 - €680.77) is taxed at the higher rate 41%.

16. All employees are automatically entitled to the following tax credits:  Personal  PAYE  Flat Rate Expenses – related to the nature of employment, usually agreed between union and Revenue and are allowed at the standard rate of tax ◦ Chef €97 Flat Rate Expense Credit @20 % = 19.40 ◦ Carpenter Flat Rate Expense Credit @20% = 44.00  House Insurance is not allowable as a tax credit

17.  Employees claim tax credits to reduce tax

18.  Eoin: Single  Single Person1650.00  PAYE1650.00  Total Tax Credit3300 annual  Monthly (/12)275.00  Weekly(/52) 63.46

19.  Anne: widow with 2 children (6&9)  Widowed person1650  One Parent Family1650  Widowed Parent3150  PAYE1650  Total Tax CreditAnnual  Monthly  Weekly

20.  Brian & Anne: married with 1 child (7) special needs. Elderly mother lives with them. Both work outside the home.  Married person3300  PAYE3300  Incapacitated child3300  Dependant Relative 70  Total Tax CreditAnnual  Monthly  Weekly

21. Calculate Tax @ Standard Rate 20% Calculate Tax @ top rate 41% Add to give Gross Tax Subtract Credits (as per Tax Credit Cert) = Tax due

26. Pay€500 in the week Tax @ 20% Tax @ 41% Gross Tax Less Tax Credit Net Tax Payable

27. Pay€850 in the week Tax @ 20% Tax @ 41% Gross Tax Less Tax Credit Net Tax Payable

28. Pay€950 in the week Tax @ 20% Tax @ 41% Gross Tax Less Tax Credit Net Tax Payable