Changing Jobs / Unemployed Periods
- What should I do if I change jobs?
- I am married and ceased employment some years ago. I am about to start a temporary job. What is my tax position?
- Am I entitled to repayment of tax if I become unemployed?
- If I am in receipt of Jobseekers Benefit while unemployed how will this affect my claim for a tax refund?
- What happens when I return to work?
What should I do if I change jobs?
Whenever you leave a job you should get a form P45 from your employer. You will need this to give to your new employer. Your new employer will operate PAYE in accordance with the details of tax credits and cut-off point on the form P45 until he or she receives a Tax Credit Certificate from Revenue. If you do not give your new employer a form P45, emergency tax will be deducted.
I am married and ceased employment some years ago. I am about to start a temporary job. What is my tax position?
The usual provisions on commencing employment will apply. As you possibly won't hold a form P45, you should contact your Local Revenue office immediately so that the amount of your tax credit and cut-off point can be ascertained and advised to your employer. This will enable your employer to deduct the correct amount of tax. You should also give your employer your PPS No. (formerly your RSI number), if known.
Your spouse is probably utilising all the tax credits due to you as a married couple. If your employment is temporary it may not be worthwhile disturbing his/her tax credits for that year. You are entitled to a PAYE allowance and expenses allowance in your own right provided you qualify for them. These can be set against your income and are not transferable to your spouse. If your spouse is not in receipt of taxable income you can claim all tax credits. Remember, however, that in general Jobseekers Benefit and Illness Benefit are taxable sources of income. Additional information is available in Leaflet IT22 - Taxation of Illness and Short-term Occupational Injury Benefits and Leaflet IT24 - Taxation of Jobseekers Benefit.
Am I entitled to repayment of tax if I become unemployed?
If you remain unemployed for four weeks you can claim a refund from your local Revenue office of tax paid, by using the four weeks unused tax credit. You can do this every four weeks until all tax has been repaid or the tax credits are used. You cannot carry unused tax credits forward from one tax year to the next.
If emergency tax was deducted from you, you may apply immediately for a refund on becoming unemployed.
To claim a refund you should ask your local Revenue office for Form P50 (First Claim for Tax Repayment during Unemployment) (PDF, 260KB) and return the completed form together with Form P45 (Parts 2 & 3) given to you by your former employer.
If I am in receipt of Jobseekers Benefit while unemployed how will this affect my claim for a tax refund?
Jobseekers Benefit is a taxable source of income. However, any child dependent element and the first €13 per week of benefit are exempt from tax. When you make a claim for a tax refund the taxable portion of the Jobseekers Benefit will be added to your pay and the appropriate refund, if any, will be made. You should note that if the weekly amount of your Jobseekers Benefit exceeds your weekly tax credit you will not be entitled to a refund. Leaflet IT 24 outlines the taxation of Jobseekers Benefit.
What happens when I return to work?
If you were not in receipt of any income while out of work you should give your P45 to your new employer, or to your last employer if you return to the same job. If you claimed a refund of tax from Revenue during unemployment you should contact your local Revenue office when you resume employment.
If you were in receipt of Jobseekers Benefit while out of work, you should contact your local Revenue office when you resume employment. Your new employer will be notified of your earnings and tax up to the date you resume employment. The taxable amount of the Jobseekers Benefit will be included in the earnings figure.
If you were in receipt of Illness Benefit and return to work with a different employer you should contact your local Revenue office.