Information for School Leavers (pdf) - Citizens Information Board

Employment
Income tax
When you start work, or even before, find out from your
employer how much you will be paid and your employer’s
PAYE Registered Number and tax unit number. Contact your
regional tax office (see revenue.ie) and explain that you are
starting work. You should also give them your PPS Number.
You will be asked to complete a Form 12A (Application for a
Certificate of Tax Credits and Standard Rate Cut-Off Point).
Once you have sent in Form 12A, it should take at least two
to three weeks before you get your Certificate of Tax Credits
and Standard Rate Cut-Off Point. At the same time, your
employer will get a shorter version which confirms what your
total tax credits are and what tax you have to pay.
All workers have tax credits that reduce the amount of tax
they have to pay. A single person has a Personal Credit of
€1,650 and a separate PAYE Credit, also of €1,650, for the
tax year January to December 2011. If you are single your
tax is calculated at the standard rate of 20% of your earnings
below €32,800 and the higher rate of 41% on the balance.
This gives you your gross tax liability. Your tax credits are
then subtracted from this figure to give the amount of tax
you will pay. The tax you pay is spread over the tax year so
that you get approximately the same wages each week.
Other reliefs that can reduce your income tax are available if
you pay college fees, medical expenses or rent or mortgage
payments. For more information on tax reliefs see revenue.ie
or citizensinformation.ie.
14 / Lo-call: 1890 777 121