Tax Tips

Were you employed on a short term contract? You might be due tax back

Have you previously been employed on a short-term contract? Did you know, that even short-term workers such as  students working for the Summer, construction workers contracted for particular works, agency temps or factory workers, could be entitled to tax back?

Read on to discover three such reasons why you may be eligible to claim tax back on your short-term contract.

tax back, short-term employment

1. You did not receive full repayment of emergency taxation payments 

If you start a short-term contract and you fail to provide your new employer with either your PPS number, an up-to-date  tax credit certificate or P45, they are unable to determine your tax status.

As a result, your entire income is subject to emergency tax at the higher rate of tax (40%) which is twice the standard rate of tax (20%). If you believe that you have not received full repayment of emergency tax payments or believe there may have been an error in the sum returned (as is often the case!), you may be due tax back.

2. You may have had unused tax credits 

The tax liability of PAYE workers is spread out evenly over a calendar year. This means that when your employer calculates your tax liability, they actually calculate the total tax due from January 1st to the date which your most recent wages were paid.

If you worked a short-term contract over a 3-6 month period for example and you became unemployed, once the contract ceased, you may have had unused tax credits left over as your tax credits will have been applied as if you were employed for a full 12 months. You therefore may be due a tax refund as a result.

3. You may be entitled to tax back for flat rate employment expenses

 Just like full-time workers, short-term contract workers are eligible to claim tax relief on flat rate expenses subject to sufficient tax paid. Flat rate expenses are a type of tax relief available to certain types of workers.

Tax relief is applicable to employment expenses such as expenses for nurses who launder their own uniforms or fitters and mechanics who bear the full cost of tools and overalls.

The qualifying list of professions is extensive and includes bar staff, nursing agency staff, teachers, waiters and many other professions! If your short term contract was for a qualifying role and you incurred eligible employment expenses, you may be due tax back.

Have you been employed on a short-term contract?

Irish Tax Rebates have helped thousands of short-term workers in Ireland to claim tax back. You can take all the complexities and hassle out of claiming your tax back for a short term contract by utilising our simple and efficient tax back service. If there is no tax refund for you, there is no fee. Apply Online our website today!