If your Job sharing working a 3 day week one week and a 2 day week the next and your getting paid half what your salery was in full time employment, do you pay the same amount of tak on your wage or are you entitled to a reduced rate, therefore coming out with slightly more money?
Thanks a mill
Again sorry if it sounds like a stupid question, im asking on behalf of a friend and phrasing it the way she did.
I don't think that any special tax treatment applies just because you job share if that's what you mean? Basically you take half the normal salary and work out the tax/PRSI deductions that apply. Try [broken link removed]to estimate the deductions. You definitely won't come out with more money since you are earning half the normal salary. You will pay less tax than when you were earning the full amount.
If your Job sharing working a 3 day week one week and a 2 day week the next and your getting paid half what your salery was in full time employment, do you pay the same amount of tak on your wage or are you entitled to a reduced rate, therefore coming out with slightly more money?
Thanks a mill
Again sorry if it sounds like a stupid question, im asking on behalf of a friend and phrasing it the way she did.
I think I may know what you mean. I think what you're saying is that, although you're effecting earning half of what you would earn for a 'normal' week, you're wondering if in fact you'll take hom a little MORE than half of what you'd take home in a 'normal' week. Is that it? If that's the question, then I think the answer may well be "yes". I haven't done the figures, but I believe that because you'll still have a full week's tax credits (or tax free allowance, as it used to be called), and yet only half a week's gross earnings, you will in fact end up with more than half of your 'normal' week's take home pay. If anybody thinks I'm wrong fair enough, but I'm reasonably sure that I'm right. The idea is, as far a I can see, that you're being allowed to earn a certain amount each week tax-free (we all are), and then you are taxed on the remainder (this is putting it very simply). So, let's start with a normal (full) week, and let's use silly figures just to explain. If you were allowed to earn, let's say, 100 a week tax free, and you earned a gross 300, you'd be taxed on 200. Let's say the tax was 20%, you'd pay 40 euro tax, and so you'd take home 260 euro (300 less 40). Using the same figures, if you were working a half week, your gross earnings would be 150 (half a week), you would be allowed to earn 100 tax-free, therefore you would pay tax on 50, so 20% of 50 is 10 in tax, leaving your net earnings would be 140 which is a bit more than half of your net earnings for a full normal week. Someone tell me if I'm wrong, or if I've completely misunderstood the question!!