Tax System in Ireland
May 19th 2015, 2:13 pm
#1
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Tax System in Ireland
Ok, I've seen so much conflicting information on the Internet, can someone please, please tell me how it works. I am a single person and so far I've seen that I will only have a Personal Allowance of €1650 pa or I won't pay tax at all up to €15,000. Some are saying I will need to pay the social services payment, some not. I know it depends on income, so for argument's sake, if I'm earning €15,000 can someone show me the tax calculation please.
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May 19th 2015, 2:27 pm
#2
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Re: Tax System in Ireland
Ok, I've seen so much conflicting information on the Internet, can someone please, please tell me how it works. I am a single person and so far I've seen that I will only have a Personal Allowance of €1650 pa or I won't pay tax at all up to €15,000. Some are saying I will need to pay the social services payment, some not. I know it depends on income, so for argument's sake, if I'm earning €15,000 can someone show me the tax calculation please.
Cheers
Cheers
IT1 - Tax Credits, Reliefs and Rates for the Tax Years 2014 and 2015
How is Exemption granted?
If your total income is less than your relevant exemption limit set out in the chart above, you will not pay any income tax. A Tax Credit Certificate will issue to your employer or pension provider showing the exemption figure so that income tax will not be deducted from your salary or pension. If you have been granted exemption, there will be no additional relief due on any further claims you might have e.g. Health expenses, etc
The only charge you would have according to my calculation would be USC Universal Social Charge
Rate Income band
1.5% Up to €12,012
3.5% From €12,012.01 to €17,576.00
7% From €17,576.01 to €70,044.00
8% From €70,044.01 to €100,000.00
8% Any PAYE income over €100,000
11% Self-employed income over €100,000
Last edited by Moses2013; May 19th 2015 at 2:56 pm.
May 19th 2015, 3:19 pm
#3
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Re: Tax System in Ireland
The exemption limit is €18.000 pa.
IT1 - Tax Credits, Reliefs and Rates for the Tax Years 2014 and 2015
How is Exemption granted?
If your total income is less than your relevant exemption limit set out in the chart above, you will not pay any income tax. A Tax Credit Certificate will issue to your employer or pension provider showing the exemption figure so that income tax will not be deducted from your salary or pension. If you have been granted exemption, there will be no additional relief due on any further claims you might have e.g. Health expenses, etc
The only charge you would have according to my calculation would be USC Universal Social Charge
Rate Income band
1.5% Up to €12,012
3.5% From €12,012.01 to €17,576.00
7% From €17,576.01 to €70,044.00
8% From €70,044.01 to €100,000.00
8% Any PAYE income over €100,000
11% Self-employed income over €100,000
IT1 - Tax Credits, Reliefs and Rates for the Tax Years 2014 and 2015
How is Exemption granted?
If your total income is less than your relevant exemption limit set out in the chart above, you will not pay any income tax. A Tax Credit Certificate will issue to your employer or pension provider showing the exemption figure so that income tax will not be deducted from your salary or pension. If you have been granted exemption, there will be no additional relief due on any further claims you might have e.g. Health expenses, etc
The only charge you would have according to my calculation would be USC Universal Social Charge
Rate Income band
1.5% Up to €12,012
3.5% From €12,012.01 to €17,576.00
7% From €17,576.01 to €70,044.00
8% From €70,044.01 to €100,000.00
8% Any PAYE income over €100,000
11% Self-employed income over €100,000
Monthly you'd have around 1226 if I'm correct
May 19th 2015, 5:12 pm
#4
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Posts: 27
Re: Tax System in Ireland
WOW! Much higher allowance than here in the UK then? Are you totally sure, it seems too good to be true� ���� !!!
May 20th 2015, 6:25 am
#5
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Re: Tax System in Ireland
Jun 26th 2015, 1:26 pm
#6
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Location: Northampton, UK (for now)
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Re: Tax System in Ireland
Is the 18k euro limit only for over-65s? I am a little confused as I can only see the 1650 tax exemption on the gov website, but I am new to this so hopefully missing something.
It is relevent to me as I am planning to move to ireland with a UK occupational pension of 23k euro, which I have taken early (age 57). Will I not be paying Irish tax on the whole 23k amount @ 20%, which is then reduced by the 1650 credit? I know USC is on top of this.
It is relevent to me as I am planning to move to ireland with a UK occupational pension of 23k euro, which I have taken early (age 57). Will I not be paying Irish tax on the whole 23k amount @ 20%, which is then reduced by the 1650 credit? I know USC is on top of this.
