Working multiple jobs is stressful enough without having to worry about accidentally paying more tax than you should.
Do you have to pay tax on a second job? Yes, but if you’ve been working two or more jobs over the past two years, it’s more than likely you have been overpaying tax and you may well be entitled to claim tax back. Let’s find out how.
Understanding Tax on a Second Job
By default, the Pay As You Earn (PAYE) system considers one job to be your main employment, and Revenue applies your tax credits and associated rate band to that job. If you are working two or more jobs, you must inform Revenue as soon as you start work so that they can send you a new Tax Credit Certificate (TCC) for the other job(s).
Each employer you work for should have a separate TCC applied – if you don’t do this, your new employer(s) may deduct the wrong amount of tax from your salary. Once you have an individual TCC in place for each of your employers, there are three ways you can split your tax credits and rate bands to make sure you don’t overpay tax.
Do You Pay Higher Tax on a Second Job?
Yes, you will pay a higher tax on your second job; however, this will only happen if you don’t inform Revenue and divide your tax credits and bands between the jobs.
But remember, splitting tax credits and rate bands between multiple jobs won’t change the total amount of tax you have to pay. What it will do, however, is ensure you pay an even amount of tax in each job, as well as help you get the full benefit of your tax credits and rate bands throughout the year.
It’s also important to note that while you might not be paying higher tax on the second job, having multiple jobs can impact your overall income tax liability.
Do You Pay Emergency Tax on a Second Job?
If you take on a second job in Ireland, you may temporarily be subject to emergency tax. Emergency tax is automatically applied when you start a new job or take on a second job. However, once you have informed Revenue and divided your tax credits and rate bands correctly between multiple jobs, you will avoid emergency tax on the second job.
If you believe you have overpaid tax, you can apply for a tax review online to determine whether you are due any tax back on a second job.
How to Split Tax Credits Between Two Jobs
Your three options for splitting taxes between two jobs are as follows:
- Leave all your tax credits, tax rate band and Universal Social Charge (USC) rate band with your primary employer.
- Divide your tax credits, tax rate band and USC rate band between your jobs in any way you see fit.
- Transfer any unused tax credits, tax rate band and USC rate band to your other jobs.
Please note – some tax credits or deductions, like flat rate expenses, cannot be split because they are only given for specific jobs.
How Do You Calculate Tax on a Second Job?
With Irish Tax Rebates! And claiming tax back has never been so simple – fill out our 60-second application form to get the ball rolling today.
If you’ve been working two or more jobs and believe you might have overpaid tax, you can apply for a Tax Review online to determine if you can make a tax back claim. We will investigate whether or not you are due any tax back, and if you’re not due a refund, there will be no charge for the review.
New Customers: Apply here.
Existing Customers: Apply For Additional Rebate