Calculating PAYE

[Maca]

Hi. Each month my wage is different because I earn commission.

Each month my PAYE is calculated as though I earn that particular amount every month.

For example, if I earn €2662 one month I would pay €227 PAYE.
Next month if I earned €1925, I would pay €80 euro PAYE.

Is this correct?
If you need to know, the cut off is €36400 and tax credit is €3660 per year.

Thanks.

 

[helllohello]

yes - your figures are correct. do you not get a payslip?
month 1 - 2662 x 20%tax = 532.40 less credit of 305 (3660/12) = 227 tax
month 2 - 1925 x 20% tax = 385 less 305 = 80 tax

 

[Maca]

I do. Actually the real question I meant to ask was - is it correct for an employer to calculate PAYE that way.
eg One month I pay tax like someone who earns 25000 a year and the next month I pay tax for someone who earns a differnent salary.
One part thinks it all balances out over the year, another part is not sure.

 

[allthedoyles]

I do. Actually the real question I meant to ask was - is it correct for an employer to calculate PAYE that way.

Yes , Its why its called paye = pay as you earn.

The only way you can reduce your tax liability , is to increase your tax credits .( currently 3660)

If you cannot increase this now , then always try and do so at the end of a tax year when you receive your P60 and send same to tax office.

\for instance , check if you are entitled to these and many more :

1. work expenses
2. trade union membership
3. private rent tax credit
4. wheelie bin charges
5. medical expenses
6. etc etc