Tax Situation In Ireland

[dieseldick]

canm anyone answer this, all my friends went to dublin last year to work , it was first time any of them worked there. they all went onto emergency tax untill tax office sorted it out then they paid no tax whatsoever for approx 3 months each. apparently you are allowed tax free to earn up to 16000 euro.

yestarday i went onot same job but when i enquired to my employer that i will get tax free for 3 months approx he repolied i would not , i asked why and he told me that my mates lasyt year only got tax free because they started work in june / july of 2016

can anyone shed on light on this , basically in simple terms please

[dieseldick]

BTW

i have never ever worked in south ireland. i have worked in EU countries such as germany holland etc but not in last 2 years

[Calibax]

The tax year in Ireland runs Jan-Dec
Although it works in a slightly different way to the UK using
cut-offs and tax credits it is run on a similar cumulative basis.
When they were on emergency tax they may have paid 40% on everything.
When the Revenue sorted out their tax credits and they went on
a cumulative basis they would be due the freepay from the first few
months and having overpaid tax would not be due any more.
As January is the first month of the tax year there are no previous
month's freepay to be taken into account.

[dieseldick]

still dont understand this. so they get tac free and i get nothing only hit with emergency tax ? 40%

[hc4361]

Seems quite simple to me, dick. Your mates started work in July and overpaid their tax for some months. Instead of getting a lump sum tax rebate they paid no tax for 2 or 3 months.

You started in January which gives the tax man a lot longer to get your tax sorted out in the same tax year. If you don't get a lump sum rebate you will pay less tax until you are square.

Your mates are not getting something you aren't - you will all have paid the correct tax over the tax year.

[EDDIE51]

DD It's easy. January is the start of the Irish tax year so starting now means there is no unused tax allowance available from the last tax year.
If you had started in say September last year you would have had 10 months unused tax allowance available so you would be tax free until you had earned up to the unused allowance.
Its exactly the same as starting work in the UK in April as against say October!

[dieseldick]

thanks guys , i understand it now. so ill definately get a rebate. wondering is it worth my while going self employed down there or even through umbrella company but ive never heard of umbrella companies in eire