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Registering for Income Tax

When you start working for the first time, you need to register your job as soon as possible. This is to avoid paying Emergency Tax. You must do this even if your job is part-time or temporary.

To do this, you must:

• apply for a Personal Public Service Number (PPSN), if you do not already have one. A PPSN is available from the Department of Social Protection (DSP)
• and
• register for myAccount (Steps Below)

Register for Revenue MyAccount.

1. Once registered for Revenue MyAccount, Revenue will send a hardcopy pin in the post.
2. Log into Revenue My Account with the pin code that Revenue posted to you.
3. Register your job by clicking ‘Add Job or Pension Details’ under the ‘PAYE Services’ tab.
4. Once completed Revenue will send a RPN to your new employer confirming your Tax Credits (Deduction from Tax), Standard Rate Cut Off (How much you can earn at 20%) and USC details.
5. Please note, all of your subsequent jobs will be registered by your employer.

Your employer will use the RPN to calculate how much Income Tax and Universal Social Charge (USC) to deduct from your pay.

Revenue My Account Registration Link!

View your Tax Credit Certificate (TCC)

You will be able to view your TCC within two working days. To view your TCC, click on the ‘Manage your tax’ link in ‘PAYE Services’ in myAccount. You can also view your TCC in ‘myDocuments’ at the top of the Home page in myAccount.

Revenue will make a Revenue Payroll Notification (RPN) available to your employer showing your total tax credits and rate bands. Your employer can then make the correct tax deductions from your pay.

How your tax is calculated

Revenue will make a Revenue Payroll Notification (RPN) available to your employer when you have registered your job with Revenue. When your employer obtains the RPN they can calculate the correct deductions of:

• Income Tax
• Universal Social Charge (USC)
• Pay Related Social Insurance (PRSI).

Income Tax

Income Tax is calculated on your ‘taxable pay’. Taxable pay is the amount you earn after pension and permanent health insurance contributions are deducted.

You pay Income Tax at the standard rate of tax (20%), up to the amount of your standard rate band for that pay period. Any income above your standard rate band is taxed at the higher rate of tax (40%). These two amounts are added together to give your ‘gross Income Tax’. This figure is then reduced by your tax credits to give the amount of tax that you will pay.

There are examples of how Income Tax is calculated in Calculating your Income Tax.

To make sure that you pay the correct amount of tax, always check that your tax credits are correct.

USC

This charge is in addition to Income Tax. USC deductions depend on the USC thresholds and rates that apply to you.

There are examples of how USC is calculated under Calculating your USC.

PRSI

This charge is in addition to Income Tax and USC. PRSI deductions depend on your PRSI class. For more information, see the Department of Social Protection (DSP) website.

Cumulative basis

Tax is normally calculated using the ‘cumulative basis’.

This means that each pay day, all earnings and all tax credits from 1 January of that year are accumulated. This is to ensure you pay the correct amount of tax and you receive the benefit of all your tax credits.

Week 1 basis

You may receive a Tax Credit Certificate (TCC) on the Week 1 basis (also known as the ‘non-cumulative basis’). This means that your employer will deduct Income Tax and Universal Social Charge (USC) from your pay on a week-to-week basis. Your yearly tax credits and rate bands are not backdated to 1 January and do not accumulate for each pay period. Your employer cannot make any refunds of Income Tax or USC that may be due to you until a ‘cumulative’ TCC is issued.

You can contact Revenue to find out why you are on the Week 1 basis, by using the MyEnquiries service in myAccount.

If you are still on the Week 1 basis at the end of the year, you should submit an Income Tax Return. You can find an Income Tax Return in ‘PAYE Services’ in myAccount. We will then review your tax position for the year.Sign in to myAccount

Week 1 basis is used for various reasons, for example, where:

• there is a large reduction in your tax credits that may result in hardship for you
• there is a lack of information about your prior employments or earnings in the current tax year
• you have come from abroad to work in Ireland, but we do not know how long you plan to stay
• you transfer your tax credits and rate band to your spouse or civil partner
• you do not want your new employer to know the details of your previous employments, pay and tax.