Tax Tips

Emergency Tax in Ireland: Emergency Tax Explained

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

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