Paying Emergency Tax in Ireland?
No one wants to pay more tax than they need to, but sometimes when you start a new job, your employer needs to apply temporary emergency tax rates to your income.
If you have just started working for the first time or have recently changed jobs, you may find that you are being taxed on an emergency basis. During the emergency tax period, your earnings may be significantly lower, which can be frustrating.
If this is the case, there is no need to worry — you can easily get an emergency tax rebate. However, you should address the situation as soon as possible. To help you understand emergency taxation and claim back your overpaid tax, our in-house experts have answered some of the most frequently asked questions regarding emergency tax.
Table of contents
- When is emergency taxation applied?
- What is the emergency tax rate?
- How do I get a refund of my emergency tax?
- I was on Pandemic Unemployment Payment (PUP); can I get my emergency tax back?
- Claim your emergency tax back
1. When is emergency taxation applied?
Your employer is required to apply emergency tax rates if you have not supplied sufficient information when beginning a new job. To avoid being charged emergency tax, you must provide your PPS number to your new employer, and you must ensure that your job has been registered with the Revenue Commissioners. If either task has not been completed, emergency tax rates will be applied to your income.
2. What is the emergency tax rate?
Emergency tax is a temporary income tax rate that is applied to a person’s income when they have started a new job but have not provided all the necessary information. How much emergency tax you are charged will depend on what type of information is missing.
If your employer has your PPS number but the job has not been registered with the Revenue Commissioners, your income tax will be affected. For the first 4 weeks, you will be taxed at the standard rate of 20% up to the limit of your rate band and taxed at the higher rate of 40% on any income above it. After the first 4 weeks, if your job has still not been registered, your entire income will be taxed at the higher rate of 40%.
If you have not provided your PPS number, all your income is taxed at the higher rate of 40% while you are being charged emergency tax.
3. How do I get a refund of my emergency tax?
If you have been charged emergency tax, you can get this amount refunded after you have been taken off emergency tax. Depending on your employer’s payroll process, you will receive this refund automatically in your paycheque.
If you have left your job before receiving any refund of emergency tax and are currently unemployed, we can claim a tax and USC refund on your behalf. We can also claim refunds on your behalf for emergency tax paid in previous years.
The Revenue Commissioners do not automatically issue refunds for every credit that you are eligible for. We can help you to be proactive to make sure you are getting back the money you are owed. To ensure that you don’t miss out, here is a list of exactly which tax credits you can claim. Please let us know if you feel that you qualify for any of these.
4. I was on Pandemic Unemployment Payment (PUP); can I get my emergency tax back?
The COVID-19 Pandemic Unemployment Payment is taxable, and any payments you received in 2021 will be taxed in this tax year, depending on your year-end tax liability. You should not pay tax if your tax liability is less than your tax credits and any additional allowances. However, this could result in you being taxed on a week 1, noncumulative basis, until any tax due is recovered. Once this has been paid, your tax credits should revert to normal. We can help you review your taxes for this and other years.
Claim your emergency tax back:
If you are unsure how to claim back emergency tax, contact our team of tax experts at Irish Tax Rebates.
We have the highest average tax rebate in Ireland and the lowest fee; and if you are not owed any tax back, there is no fee applied! Fill out our 60-Second application form today.