# PAYE and 2 employers - best way to split taxes?



## ella2007 (27 Jan 2009)

Hi,

I am an employee of 2 employers: I work 3 days a week for one employer, and 2 days a week for the other one.

My question is: is there a best way to allocate my tax credits / rate bands to either (or both?) of the employers, so that it is the most tax efficient for me? I am thinking in terms of tax charged, as well as PRSI, levy, etc.

Basically, this is what I earn:
job 1 - gross pay €26,953 yearly
job 2 - gross pay €18,000 yearly

I have this amount of tax credits for 2009: €4,061

I have struggled to find the best answer for this from Revenue, they tell me they don't know, so I hope someone can help me here.

Thanks a lot!


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## Clarkey (27 Jan 2009)

Tell them you want all your tax credits with job 1 and a standard rate cut off point of €26,953 with job 1. Ask them to apportion the balance of your standard rate cut off point with job 2.


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## ella2007 (27 Jan 2009)

Hi Clarkey,

Thanks for your reply. Much appreciated.

Actually I have had the money allocated the exact way you're saying, up to now, but wasn't sure this was the best way. Now I know! 

Just wondering if there is any "quick" (and easy) online guide on PAYE taxation? What I am looking for is some guide that would help me understand the different items in my pay slip... Always hard to understand!

Thanks!


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## ella2007 (28 Jan 2009)

Hi all,

I spoke to an accountant today on the phone and indeed this is the best way to allocate tax credits / standard rate band.

So if anybody looks at this thread and also has two PAYE jobs, here is how to split tax cert figures:
- job 1: put all the tax credits on this job + have the standard rate band stop at your gross salary in this job
- job 2: will have no tax credit + have the balance of your (gross standard rate band - gross salary from job 1) allocated to the standard rate band

In my case:
Gross standard rate band = €36,400 in my case
Job 1 - gross pay €26,953 yearly
Job 2 - gross pay €18,000 yearly
My 2009 tax credits for 2009: €4,061

So for me this is the best way to split figures:
* job 1:
tax credits = €4,061 yearly
standard rate band = €26,954 yearly

* job 2:
tax credits = €0 yearly
standard rate band = (€36,400 - €26,954) = €9,446 yearly

You can also choose to split your tax credits to both jobs, it doesn't matter in the end. It will change your net pay in each job but won't affect the global amount of taxes you pay. In my case I choose to affect all tax credits to one job as it makes things easier I feel (it's complicated enough as it is!!! )

I hope this helps others!

Cheers


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