Paying Emergency Tax in Ireland?
Paying emergency tax in Ireland is something we all want to avoid, whether we’re just entering the workforce or changing jobs.
However, misunderstandings and misconceptions around emergency tax can lead to a frustrating situation where your earnings are considerably low for the duration of the emergency tax period. But don’t worry – you can claim back overpaid emergency tax.
To help you understand emergency taxation and to help you to claim back emergency tax, our tax back experts have answered some of the most frequently asked questions regarding emergency tax.
1. What is emergency tax?
Emergency tax involves the taxation of all of your earnings at the higher rate of tax for a temporary period – 40% from 2015. A temporary tax credit is given for the first month of employment which is based on the Single Person Tax Credit and rate band for the tax year.
However, from the second month on tax deductions are increased substantially. Therefore, during this emergency tax period, your pay packet may contain a lot less than it should.
2. When is emergency taxation applied?
Your employer is required to deduct tax on the emergency basis if they do not receive the sufficient information required for you to benefit from your full scope of tax credits. In order to avoid emergency taxation, your employer must receive an up-to-date Certificate of Tax Credits and Cut-Off Points.
If you’re starting work for the first time, you will need to apply for a Certificate of Tax Credits and Standard Rate Cut-Off Point by completing Form 12A and provide your employer with your PPS number.
3. Will revenue automatically apply my tax credits when claiming back emergency tax?
Generally, the Revenue office only considers the most prevalent tax credits, namely PAYE and personal taxation credits. If you want to declare eligibility for more tax credits, you’ll either have to do the research yourself first to see which credits you are eligible for or consult a tax expert.
To ensure that you don’t miss out, we’ve listed exactly what tax credits you can claim for in a this blog post.
Claim your emergency tax back:
If you are unsure how to get claim back emergency tax, contact our team of tax experts at Irish Tax Rebates. We advise on tax relief applicable to your emergency tax payments and help you to get your money back.
We have the highest average tax rebate in Ireland and the lowest fee; and if you aren’t owed any tax back, there is no fee applied. To get the ball rolling, you can fill out our 60-Second application form today.
Claim your tax back
Terms and Conditions
1. Authorisation to act as agent
I, the undersigned, declare to the Revenue Commissioners of Ireland, that I authorise Irish Tax Rebates to act as my agent with regard to all aspects
of my income tax.
I understand that this agreement will remain in place until such time as either party, the client or the agent, has notified the Revenue Commissioners of Ireland in writing of their wish to cancel this agreement.
2. Authorisation for Agent to receive refunds on behalf of client
I authorise the transfer of any refund or repayment of PAYE/Income Levy/Universal Social Charge due to me by the Revenue Commissioners by electronic funds transfer to the following bank account which is held by Irish Tax Rebates:
BIC Code: AIBKIE2D
IBAN Number: IE55AIBK93336808365254
Name of Account Holder: MB Tax Refunds Clients Account
I understand that any refund made by the Revenue Commissioners to my agent, Irish Tax Rebates, on my behalf is refunded in a similar manner as if same were being refunded directly to me and that once the refund is transferred into the bank account nominated by me I have no further call upon the Revenue Commissioners in respect of same. I understand that Irish Tax Rebates is acting as my agent and is solely responsible to me in respect of any refund received by them on my behalf. I further understand that my agent Irish Tax Rebates is an independent entity and that the Revenue Commissioners make no endorsement of my agent or any such agency and cannot accept any responsibility whatsoever for problems encountered by me in dealing with them. I understand and agree that Irish Tax Rebates will input its own bank account details on the Revenue record for the duration of this mandate and will remove these details on the cessation of the mandate. I confirm that I am aware of, and agree to, the payment of the fees charged by Irish Tax Rebates in respect of the services carried out on my behalf and that this fee will be deducted from any amount refunded by Revenue and that the balance of this amount will be paid to me.
3. Terms and Conditions of Authorisation
I understand that Tax law provides for both civil penalties and criminal sanctions for the failure to make a return, the making of a false return, facilitating the making of a false return, or claiming tax credits, allowances or reliefs which are not due. I confirm that I will provide the necessary documentation to Irish Tax Rebates to support any refund, credit claims or claims for allowances and reliefs made to Revenue on my behalf of Irish Tax Rebates. I confirm that I will provide details of all my sources of income to Irish Tax Rebates. I understand thatIrish Tax Rebates is required to retain a copy of all documentation relating to any refund or credit or allowance or relief claimed by the agent on my behalf and that the agent will be required to produce same to Revenue upon request.