Changing Jobs / Unemployed Periods

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 (TCC) from Revenue. If you do not give your new employer a form P45, emergency tax will be deducted.

If your old job has been ceased on our records you will be able to notify us of your new job on the Jobs and Pensions service in myAccount.

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I am married or registered in a civil partnership 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 current form P45, you should tell us about your new job online using the Jobs and Pensions service which is available in myAccount. If you are not registered for  myAccount you will need to register for this service first.

Once you have registered your job in the Jobs and Pensions service, a TCC will then issue to you and to your new employer, allowing them to make the correct deductions of tax.

Your spouse or civil partner is probably using all the tax credits and standard rate band due to you as a couple in a marriage or a civil partnership. If your job is temporary it may not be worthwhile disturbing the tax credits for that year. You are entitled to a PAYE tax credit, flat rate expenses (if due in respect of this particular job) and standard rate band in your own right provided you qualify for them.

If your estimated income for the year is €24,800 or less you will pay tax at the standard rate (20% in 2016). If your income for the tax year exceeds €24,800 your tax rate will depend on the level of your joint income (both spouses or civil partners). If you are in any doubt, contact your Revenue office to ensure you have the correct tax credits and standard rate band.

If your spouse or civil partner is not in receipt of taxable income, you can claim all relevant tax credits and the standard rate band. 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.

If you are a Home Carer you can have income up to €7,200 without affecting the Home Carer Tax Credit. This tax credit is reduced where the income is over €7,200. Full details are available in Leaflet IT 66 – Home Carer Tax Credit. In certain circumstances the increased standard rate band may be more beneficial.

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 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 Revenue office for pdfForm P50 (First Claim for Tax Repayment during Unemployment) (PDF, 289KB) and return the completed form together with Form P45 (Parts 2 & 3) given to you by your former employer.

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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?

As soon as you start working again, give your P45 to your new employer, otherwise you may end up paying too much tax as you will be taxed on the emergency basis. Your employer will send the P45 to Revenue and a TCC will issue.

If your old job has been ceased on our records you will be able to notify us of your new job using the Jobs and Pensions service in myAccount.

If you do not have a P45, you can also register the details of your job using the Jobs and Pensions service. If your previous job has not been ceased you will need to contact your Revenue office on the 1890 telephone service instead.

(Adobe Acrobat Reader PDFExternal link)

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