Tax Credits and Emergency Tax
- What are Tax Credits?
- What must I do to get my Tax Credit Certificate?
- How do I get the benefit of my Tax Credits?
- What happens if I don't follow the procedures above?
Under the tax credit system, every individual is entitled to tax credits depending on personal circumstances. Every individual can claim a personal tax credit. PAYE taxpayers can also claim a PAYE tax credit.
For details of the main credits, see leaflet Leaflet IT 1 (Tax Credits, Reliefs and Rates)
Once you start work, you must register the details of your new job with Revenue to get your tax credit certificate (TCC), otherwise your employer will deduct emergency tax on your pay.
The Jobs and Pensions service will guide you through the process of registering your details and setting up your new job. You must be registered for myAccount in order to use the Jobs and Pensions service.
You will need the following details to complete the job registration:
- your new employer’s tax registration number
- the date you started/are starting your new job
- your staff number if you have been allocated one by your employer - this is also called a personnel, works or payroll number
- if you are receiving a benefit from the Department of Social Protection we may ask you for the weekly amount, if it is not already on our record.
We will also ask some questions to help us determine your correct tax credits.
After your registration is complete and your job is set up, a TCC will issue notifying both you and your employer of your tax credits and rate band. You will be able to view your TCC on PAYE Anytime (available within myAccount) within two working days.
Once your employer has received this notification, he or she can make the correct income tax deductions from your pay.
Your tax credits are given to you for a full tax year. So, whether you start work in the first week of the tax year or six months into the tax year, you still qualify for a full year's tax credits. As tax deductions are spread evenly throughout the year under the PAYE system, the total due is divided into 52 weekly/12 monthly amounts, depending on frequency of pay. Your employer grants these credits against your gross tax to arrive at your tax payable.
If an employer does not get either a:
- Tax credit certificate, or
- Form P45 (parts 2 and 3) from an employee
he / she is obliged to deduct emergency tax / USC when paying an employee's wages or salary. Under emergency tax / USC, a temporary tax credit is given for the first month of employment but tax deductions are increased progressively from the second month on.