Understanding Emergency Tax:
Emergency Tax is something everyone wants to avoid when starting employment or changing employments. There seems to be nothing worse than receiving your first payslip to realise
that half your wages has gone on emergency tax. To help our clients understand emergency tax and how to get off emergency tax, we have answered some of the most popular questions
below.
Why was I put on Emergency Tax?
Under the New PAYE Modernisation system that Revenue implemented on the 1 st January 2019, an employer is obliged to operate emergency tax when they do not receive a Revenue
Payroll Notification (RPN). Your employer will not receive an RPN if:
1. You have not supplied them with your Personal Public Service number (PPSN)
2. You have not registered for Pay As You Earn (PAYE)
You will automatically register for PAYE once you register a job or pension using the “Jobs and Pensions” service in MyAccount with Revenue.
How much is Emergency Tax?
Emergency Tax in Ireland is at a rate of 40%. How soon you are charged the 40% depends on whether you have given your PPS number to your employer and whether you have registered
for PAYE. When you have not supplied your PPS number to your employer: Your income will be taxed at the higher tax rate (40%) straight away.
If you have given your PPS number to your employer but have not registered for PAYE: You may have given your PPS number to your employer, however you may not be registered
for PAYE so your employer will not receive an RPN. In this case, you will receive a single person’s rate band (€35,300) for the first four weeks. This means that your income for each of
the first four weeks will be taxed as follows:
Up to €679 (€35,300 yearly band / 52 weeks) will be taxed at the standard rate of 20%
Over €679 will be taxed at the higher rate of 40%.
After the four weeks has elapsed and you still have not registered for PAYE, your total income will be taxed at 40%.
How much is Emergency USC:
In addition to paying emergency tax at a rate of 40%, USC will also be charged on an emergency basis. This is a flat rate of 8% for the years 2019 & 2020.
How do I come off Emergency Tax?
In order to ensure that you are not being charged emergency tax, your must give your PPS number to your employer and also register for PAYE. Registering for PAYE is as simple as
registering for a MyAccount with Revenue and register your first job in the “Jobs and Pensions” section. If you need help with this step, simply contact us by email at info@yourmoneyback.ie and we will go through each step.
Will Revenue give my employer all my tax credits?
Revenue will normally only give you the PAYE tax credit and the personal tax credit. Any additional tax credit that you may be entitled to must be applied for. We at YourMoneyBack
can help ensure you claim all your tax credits and reliefs. Once registered with us at www.yourmoneyback.ie we will review your taxes for the last four years and ensure that you
claim all your entitlements.
Need help in claiming back your Emergency Tax?
By completing our simple Online Registration Form, our team of qualified Chartered Accountants will be able to review your taxes and ensure that you are claiming the tax credits
and reliefs that you are entitled to claim. If you have any questions on the above or if you just need help to claim tax back simply contact YourMoneyBack today. With our expertise we will ensure that you claim the maximum tax refund available and our fees are the lowest in Ireland. Plus, if you are not due a tax refund then there is no charge. Simply complete our Online Registration Form and we do the rest. Don’t miss your chance to claim your tax refund and Apply Today for YourMoneyBack!
Simply fill out our 60 second online form by clicking the button below and we will do the rest.
