Starting Work and Tax

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Being an employee and a student provides a lot of benefits. Not only is there the economic aspect; taking on additional obligations can teach responsibility and provide valuable skills and experience that will benefit you throughout life.

Once you have mastered the balance that is necessary to succeed in both tasks, you will be proud of yourself for taking on the challenge and realising how you can grow from it.

When do I start to pay income tax?

You will normally start to pay tax from your first payday. The amount of tax you pay depends on your level of pay and the amount of your tax credits. If your pay on any payday is less than your tax credits then you don’t pay tax on that pay-day. If your pay is more than your tax credits, you pay tax on the difference.

If you start work in the first week / month of the tax year your employer will deduct one week’s / month’s fraction of your annual tax credits from your first week’s / month’s pay and will deduct tax from the balance.

If you start work in (say) the 27th week of the tax year your employer will calculate your gross tax on your wages, but you will have 27 weeks tax credits to offset against this liability, this will continue until you utilise all your unused tax credits.

Find more at Revenue.ie

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