PAYE and multiple jobs

C

Clueless_gal

Guest
I'm a newbie, so apologies if you've all been through this before - i did a search, but could find nothing that really answered my question.

I am a PAYE worker who will soon have three different jobs. I do seasonal work, so two of these are fixed-term temporary positions. To date this year I have earned around €3,000 as I have been a fulltime student (postgrad mature student) and have been working one part time casual job.

Here's a summary of my position:

Job A - permanent, but part-time and casual. The source of the €3,000 that I have earned this year. I have not paid any PAYE on this, I assume the reason being that I have earned below my personal tax credits.

Job B - starting Monday 23/07/07 at €630 per week for 10 weeks.

Job C - 18 days from 01/08/07 Gross pay will be €1,800 (€100 per day), but I am not sure how the payments will be structured.

I will not be working in Job A at all while Jobs B & C are underway - I will return to it in October.

A couple of weeks ago I contacted Revenue to advise about getting certificates of tax credits for my new employments. I don't understand these things very well, and was not much the wiser after the phonecall. The Revenue person advised me to transfer all of my tax credits from Job A to Job B, and to contact them a bit later about Job C. Assuming they knew best (which is entirely possible), I agreed, but asked for this to only come into effect from 23/07/07 - the day I begin employment at Job B.

Revenue in their wisdom brought it into effect immediately, and sent out new certificates to me and to my new employer. Meanwhile, I received a letter from Job A telling me that they were unable to process my pay, and I would either have to transfer some or all credits back to that job, or pay €894.90 in tax owed. (My gross pay for the week in question was only €160.13, so a payslip with a big red -€894.90 at the end came as a bit of a shock!)

Now I am really confused. I think (?) that if i transfer some credits back to Job A to rectify this, then I will be taxed very heavily on Job B, which will be my main earner for the next 2.5 months. What exactly I am going to do about Job C, I have no idea.

Come October, I will be back to my usual situation of earning very little, and therefore would really prefer not to overpay tax now and then have to reclaim at the end of the year, as that will really affect my cash flow situation.

Any and all advice or links would be much appreciated!
 
Splitting your tax credits the way you are doing it is fine. The problem is that the your paye is being calculated on a "normal" basis. What you need is for it to be calculted on a week one basis instead.

Job A has applied the new tax credits and they have been applied retrospectively to cover the entire year so far.

Have a chat to who ever runs the payroll, they should know the difference between week 1 and normal basis. With approval form the revenue you should eb able to sort it out.
 
Ahh, so it's being backdated to the start of the year, rather than just starting from now? That make sense - I think!

Thanks for shedding some light on that!
 
What about this...
I have job A with a private company and they pay me... obviously!
I have a qualification that i can do consultancy work part time and I should and if i do it, will pay tax on this income.
Now how would i go about doind this or is this impossible? Is it possible to set up a company and still work in the private sector?
 
you have no need to set up the company. You can provide the consultancy services and still work. Your tax credits etc. can be used in your PAYE job which will mean that any profits made form consulting will be taxed at 41% if you earn more than €34k in PAYE.

Alternatively you can have the amount of tax credits allocated to your PAYE job reduced. Your net salary will decrease but you will have some tax credits to put against your consulting profits.

You will pay the same amount of tax either way and I would advise against reducing the tax credits used for calculating your PAYE salary.
 
Thanks for that... It was somethign i was worried about.
Is there some forms or somethign i must fill in as i go along? Obviously it'll be sparce as I start but them hopefully I could get more work. This has really made my day because I thought I couldnt do both as the cousultancy is perfect for evenings and weekends.

What about a Tax Clearance Certificate? Would I have to get one of them?
 
If you register yourself for income tax. Go to the revenue website. www.revenue.ie and get yourself a form TR1, fill it our and tick the box to register for income tax. If your income is going to be over €35k then you will have to register for vat also.

Once you have done this and providing your taxes are up to date which I would assume they are if you are PAYE then you should have no problems getting a Tax Clearance Certificate.

Other than this you will not need to submitt returns during the year. You will need to file a tax return once a year. And you will also need to keep proper records of your income and expeniture.
 
Just one last thing,
I am under the 34k mark, just a little, would that make much of a difference? And also could i still include expenses to reduce the amount I would have to pay tax on?

And finally... what happens if i aply for a tax clearance certficate, yet dont actually get any extra work? Would revenue come asking me what i was at?
 
no, remeber that if you set up a business you are not obliged to to trade or to make a profit.

A tax clearance certificate is a piece of paper that says that your taxes are up to date. If you do not trade you will still be obliged to make a tax return. Once you have made the return you will be tax compliant and that is what matters.
 
Cool,
Thanks for that. Downloaded the form, looks a bit complicated, but will get through it. I suppose if i give them a ring they'll help me out anyway.
Thansk for the help, one step taken anyway.

Lemon
 
lemon125 said:
Just one last thing,
I am under the 34k mark, just a little, would that make much of a difference?
Click to expand...

If you are married, jointly assessed and your spouse earns less than 25k, you could take a cut off point of 43k.
 
You must log in or register to reply here.
Back
Top