Taxation FAQs

I am a teacher being appointed for the first time, what do I need to do to ensure that I am taxed at the correct rate?

You will have to complete Form 12A - Application for a Certificate of Tax Credits and Standard Rate Cut-Off Point, send it to your Revenue Office, and you will receive a Certificate of Tax Credits and Standard Rate Cut-Off Point. Further information is available on the Revenue web page at Personal Tax .

What do I do about my tax if I change from one school to a new school?

No action necessary

What are tax credits?

With effect from 6 April 2001, tax credits replaced tax-free allowances. Under the tax credit system, you are entitled to tax credits depending on your personal circumstances, e.g. married person’s tax credit, employee (PAYE) tax credit, etc. These tax credits are used to reduce the tax calculated on your gross pay. Tax credits are non-refundable. However, any unused tax credits in a pay week or month are carried forward to subsequent pay period(s) within the tax year.

What is a standard rate cut-off point?

A standard rate cut-off point is the amount of your personal standard rate tax band as adjusted - decreased for any non-PAYE income and increased for any tax reliefs available at the higher rate of tax. For each pay period, you pay tax at the standard rate of tax up to your cut-off point. Any income over the cut-off point is taxed at the higher rate.

What must I do to get my tax credits?

When you commence in employment for the first time, complete Form 12A - Application for a Certificate of Tax Credits and Standard Rate Cut-Off Point (PDF, 211KB) (see paragraph 2.1), send it to your Revenue Office and you will receive a certificate of tax credits and confirmation of the standard rate cut-off point.

On an ongoing basis, you will receive a certificate of tax credits before the beginning of each tax year. This will be issued by reference to the latest information on record, given by you, together with budget changes automatically granted without request.

How do I know if I am on emergency tax?

You are being taxed on an emergency basis, if the tax basis and the tax code appear on your payslip as “E”.

What do I do if I am on emergency tax?

You should contact your local Revenue office with your PPSN, Payroll and Employer Registration Numbers.  You should request to have an up-to-date tax certificate issued to your current employer.  Tax certs will automatically transfer to the Department from Revenue for permanent and fixed-term staff.  However, substitute or part-time staff paid via the Online Claims System must contact their relevant payroll area in order to have their tax details updated.   A current year tax refund can only issue via the Department’s payroll if you are currently in receipt of a salary.

How do I know that I am being taxed on a ‘Week 1’ basis?

The tax basis will appear as “F” on your payslip if you are being taxed on a ‘Week 1’ basis.

I am being taxed on a “Week 1” basis, what does this mean?

It means each week's pay and tax is calculated independently without reference to the previous week. No refunds are made.

Why am I being taxed on a “Week 1” basis?

There are a number of reasons why a person may be taxed on a “Week 1” basis. Revenue mainly issue Week 1 certificates in the following circumstances where:

  • There is substantial reduction of tax credits which may cause hardship.
  • There is a lack of information about prior employments or earnings in the current tax year.
  • The residence intentions of a person coming from abroad to take up employment here are not known.
  • Tax credits/standard rate bands are transferred.
  • An employee does not wish his/her new employer to know the details of his/her previous pay and tax.

In addition to above, employers will also operate on a Week 1 basis in relation to payments made in the following circumstances:

  • Payments made to a ceased employee.
  • Payments made on Week 53.

How do I get my tax back?

If the refund relates to a previous tax year, you should contact your local Revenue office.  If it relates to the current year, you will receive any tax refund due to you as part of your salary.  You should ensure that your tax credit certificate has been issued to the correct Employer Registered Number and check your payslip to ensure that your tax credits and cut-off points correspond with your tax credit certificate.

I have been issued with a new tax credit certificate.  What do I do now?

If you are a substitute or part-time teacher, you must contact your payroll area to ensure your tax details are up to date.  If you hold a permanent or fixed-term contract, you don’t need to contact payroll as your tax details will automatically be transferred to the payroll from Revenue Online.

 Why has my tax credit certificate not been implemented?

Substitute teachers must contact the payroll directly when they get a new tax credit certificate.  As substitute teachers do not have a live continuous appointment on our payrolls, their certificates will not automatically transfer from Revenue Online.  You must contact your payroll area directly to arrange to have your tax credit certificate updated.

How do I find out where my local Revenue Office is located?

There is a Contact Locator on the Revenue website to check which office deals with your query. You need to have your PPSN to hand when using this facility.

What is a P45?

A Form P45 is a certificate given by an employer to an employee on cessation of employment. This form certifies the employee’s pay, tax and PRSI contributions from the start of the tax year to date of cessation and also certifies that the deductions have been made in accordance with the instructions given by Revenue.

The Form P45 shows:

  • Gross pay to date of leaving
  • Tax deducted to date of leaving
  • PRSI deducted to date of leaving and number of insurable weeks
  • PRSI Class
  • The amount of the tax credits and standard rate cut-off point in operation
  • Date of cessation and commencement (if after 1 January).

The Form P45 is a very important document and is needed for:

  • Claiming a refund of tax during unemployment
  • Claiming Social Welfare benefits
  • To give to your new employer to avoid paying emergency tax

What is a P60?

At the end of each tax year your employer must give you a certificate of pay, tax and PRSI deducted during the year. This certificate is called a Form P60 and comes in two parts. It is your record of:

  • The pay you received from your employer
  • The tax deducted under PAYE and
  • The PRSI contributions deducted.

If your liability to tax for any year needs to be reviewed, you will need to send one part of the Form P60 to your Revenue office. If you need to claim a Social Welfare benefit, you should send the second part to the Department of Employment Affairs and Social Protection as evidence that you have paid PRSI contributions.