# Calculating tax refund



## Curious11 (22 Jan 2011)

Hi I'm only going to be working until July 31 this year and I'm trying to figure out how much of a rebate I'd be due in January 2012 but haven't a clue where to start. Gross is 47k, single, no pension, no property and all that jazz.
Gross per month is 3,916 and my net monthly pay will be 2,820.

Any help on how to calculate this would be much appreciated!


----------



## allthedoyles (22 Jan 2011)

What your circumstances in the last 6 months of 2011 will be crucial and will determine how much you will be entitled to in refund .

If you are going to claim Jobseekers Benefit , this is  taxable , so will count as income .


----------



## Curious11 (22 Jan 2011)

Packing in the job to go travelling  so will not be working in any country until at least mid 2012 nor claiming any benefits


----------



## Brendan Burgess (22 Jan 2011)

Roughly - using http://www.taxcalc.eu/

example - Annual salary €50,000

Step 1 - calculate your liability for the entire year for €50,000 - €10312

Step 2 - calculate what you will have paid by the time you leave - 50% of €10,312 i.e.  €5,126 

Step 3 - calculate your liability for the entire year for €25,000:  €1,700

Step 4 - Deduct 3 from 2 = €3,426

I lost track of the USC and PRSI some time ago, so I don't know if you will get a refund of this.


----------



## Curious11 (22 Jan 2011)

Ah I see what you mean, have calculated it as E3,130 seeing as I'll be given my holiday pay at the end of August so technically it'll count as working 8 months, not 7. Haven't a clue about PRSI etc either but I'm well happy with that figure anyway!
Cheers for your help.


----------



## allthedoyles (22 Jan 2011)

As you only intend to work 1014 hours in 2011 , you are not entitled to 4 weeks holiday pay , - only 2 weeks ( 1014 x 8% = 81 hours  ) 

therefore you will have 20 unused tax credits ( from Mid August to 31st dec )

As a single guy you probably have your personal tax credit and your paye tax credit ( 1650 x 2 = 3300 euro for 2011 ) = € 63 weekly 

As your weekly tax credit is € 63 per week , this means that you can claim 20 weeks @ € 63  = € 1260 euro  tax refund .

When you receive your P45 on 31st July , you can fill in form P50 and send to tax office 4 weeks later .


----------



## deadlyduck (22 Jan 2011)

I agree with allthedoyles calculation- essentially, the refund will be for the amount of unused tax credits, which will be in the region of €1300 rather than €3000.

By the end of August you will have used up 7/12 of your annual tax credits (i.e. €1925 [€3300 x 7/12), assuming that your annual credits in 2011 are the typical amount for a single employee of €3300). Additionally, you will use some credits up for the holiday pay.
Therefore, _the *balance* of the €3300 will be refundable_- this is approx €1300 +-, depending on the value of credits used up for the holiday pay.

Additionally, I calculate that you might be able to recover some of the Universal Social Charge- the precise amount will depend on the holiday pay value but excluding that, the reclaim would amount to approx €280. No PRSI refund would arise.

[Source: my spreadsheet]


----------



## Curious11 (23 Jan 2011)

I am very confused... The holiday pay plus days in lieu I will be entitled to (lucky for me) is equal to a full month's pay so essentially I will be getting an identical pay cheque at the end of August to all the other months. So in effect I'm working for exactly eight months, using 8/12 of my tax credits.

But as I understand it you can earn up to e32,000 in a full year within the 20 per cent tax band, and if I am only working for 8 months I'll be just under the E32k so does that not mean that at the end of the year I'm entitled to a refund of half of what I paid in the 41 per cent tax bracket every month? At the end of the year technically I shoudn't have paid anything above 20 per cent tax, right?


----------



## Curious11 (23 Jan 2011)

Allthedoyles if I've read you right you're saying that as I'm entitled to E63 tax credits a week then I can claim a refund of that for the 20 or so weeks I didn't work so it's E63x20.

But by that logic no matter how much tax you pay in a year you're still only entitled to the same refund, ie if I was on 100k and paying the guts of 30k a year in tax I'd get the same refund for those last 20 weeks as someone who was on E28k and paying about E3k a year in tax. That doesn't seem fair!

Surely I should get back 21 per cent of anything I've paid 41 per cent on for the year seeing as my pay on December 31 will not exceed the E32k annual income threshold for the 20% tax band?


----------



## deadlyduck (24 Jan 2011)

Hi- actually, what both myself and allthedoyles were referring to was the reclaim of unused tax credits via the Social welfare office using form P50 (which isn't relevant to your case, as you'll be gone from the country). My apologies for not reading the case carefully 

In that case, then you would do the calculation as per your original/ Brendan's method and the refund should be in the €3K +- region. You should also definitely check the possibility of a USC refund as it's likely that you'll have overpaid on that.


----------



## Curious11 (24 Jan 2011)

Phew! I'd already spent the E3k in my head! Thanks for all your help, much appreciated.


----------

