Taxation of Apprenticeship Training Allowance - 'Off the Job' Phase

Can anyone advise regarding income tax during the 'off the job' phase of apprenticeship please?

Person has a commercial employer and all their tax credits are currently allocated to that employment. However for the next 11 weeks they are in college on an 'off the job' phase. The Department of Education becomes their employer and pays them a training allowance. No credits are currently allocated to this 'employer' on their Revenue profile and they are paying income tax at 40% on their allowance.

The college has told them not to cease employment with their current employer. If you manage credits between the two employers on their Revenue profile, there is an assumption that you will be paid by both on an on-going basis until the end of the year, which doesn't reflect the 'on the job' / 'off the job' phases that an apprenticeship involves.

They don't normally pay any income tax on their wages, so even with unused tax credits, they won't see a benefit when they return to their normal employer. They will pay about €1300 in tax over the 11 weeks if things are left as they are, which is a substantial amount for someone on a trainees wages.

It is possible to claim a mid-year tax adjustment when the return to their normal employer or how would people advise to best manage this? Thanks.

For apprenticeships, thats good advice, keep both as employers. You can split the tax credits and standard rate cut off between both employers. In this case, better to allocate enough to offest the PAYE on the Dep Of Ed, leave the balance with the employer.

For those on apprenticeships, where effectively 2 employments are involved, it is very common to split the tax credits and standard rate cut off, just watch out for being put in a week 1 basis,where no backdate of PAYE refunds are made.
A call to revenue,
Armed with, the anticipated gross pay for 2023, for each employment, will sort this out.

fayf said:

For apprenticeships, thats good advice, keep both as employers. You can split the tax credits and standard rate cut off between both employers. In this case, better to allocate enough to offest the PAYE on the Dep Of Ed, leave the balance with the employer.

For those on apprenticeships, where effectively 2 employments are involved, it is very common to split the tax credits and standard rate cut off, just watch out for being put in a week 1 basis,where no backdate of PAYE refunds are made.
A call to revenue,
Armed with, the anticipated gross pay for 2023, for each employment, will sort this out.

Click to expand...

Good advice. Though it can be done online using myaccount.

The employer will continue to have them on the books and cover there side of the tax.
They will receive their wages from solas if it’s a commercial apprenticeship.
All stamps remain up too date during off the job phase of apprenticeship.

fayf said:

For apprenticeships, thats good advice, keep both as employers. You can split the tax credits and standard rate cut off between both employers. In this case, better to allocate enough to offest the PAYE on the Dep Of Ed, leave the balance with the employer.

For those on apprenticeships, where effectively 2 employments are involved, it is very common to split the tax credits and standard rate cut off, just watch out for being put in a week 1 basis,where no backdate of PAYE refunds are made.
A call to revenue,
Armed with, the anticipated gross pay for 2023, for each employment, will sort this out.

Click to expand...

Thanks for that. Appreciate advice re splitting the credits between employments. Tried to do this the last time but it didn't work out. The system assumes that you are going to get paid by both on an on-going basis, rather than this situation when one payment stops and the other kicks in for a short period. This type of switching is probably unique to apprenticeships, it's different than having two jobs at the same time which the managing credits seems to be set up for.
Will advise them to ring Revenue and see if they can sort it out that way.

cremeegg said:

Good advice. Though it can be done online using myaccount.

Click to expand...

Yes it can, but the default, when you do it mid tax year, is a week 1 basis, so no PAYE refund follows, if you want it sorted out quickly, call them