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Second or multiple jobs

  1. Overview
  2. What to do if you get a second job
  3. Splitting tax credits and rate bands between jobs

Splitting tax credits and rate bands between jobs

You can:

  • leave all your tax credits, tax rate band and Universal Social Charge (USC) rate band with your main job
  • divide your tax credits, tax rate band and USC rate band between your jobs in any way you want
  • or
  • transfer any unused tax credits, tax rate band and USC rate band to your other jobs.

Splitting your tax credits and rate bands between jobs will not change the total amount of tax you have to pay. It can ensure that you:

  • pay an even amount of tax in each job
  • and
  • get the full benefit of your tax credits and rate bands during the year.

How to split your tax credits and rate bands between jobs

There is a facility in 'Manage your tax for the current year' in the 'PAYE Services' section of myAccount that will allow you to  split your tax credits. In 'Manage your tax for the current year', you will see how your tax credits and rate band are currently allocated. To change this:

  • Click ‘edit’ above where the employments are listed.
  • Enter your estimated gross salary from these employments. (Your credits and rate band will be split based on these figures.)
  • Select:
    • ‘Proceed With Recommendation’, if you are happy with this allocation.
    • 'Proceed with Different Recommendation', if you would like to make additional changes.

Alternatively, you can submit your estimated gross salary for each employment through MyEnquires. Your tax credits and rate band will be split in the most beneficial way for you.

Note

Some tax credits or deductions such as flat-rate expenses cannot be split as they are given only for specific jobs.

The following examples show how your tax credits and rate band can be used to suit your circumstances. (USC is not included in the calculations.) The examples are based on a single person claiming basic tax credits. You may be entitled to more tax credits. If you are married, or in a civil partnership, and taxed under joint assessment, your tax credits and rate band will differ.

For further information, please see our Personal tax credits section.

  • Example 1 - Tax credits and rate band left with main job

    Jane is a Pay As You Earn (PAYE) worker and earns €850 per week in her main job. 

    Jane is entitled to the following for 2024:
    DescriptionAmount
    Weekly rate band €807.70
    Weekly tax credits  €72.12

    Revenue send Jane a Tax Credit Certificate (TCC) showing these tax credits and rate band. We will send her employer a Revenue Payroll Notification (RPN) showing the total amounts.

    Jane gets a second job where she earns €110 per week. She decides to leave her full tax credits and rate band with her main job.

    Revenue send Jane a TCC for her second job showing that she has no rate band or tax credits for this job. We also send a RPN to her new employer showing that all her income from this job should be taxed at the higher rate of 40%.

    This is how Jane's weekly tax is calculated for her main job:

    Jane's weekly tax calculation for her main job
    DescriptionIncomeTax
    Taxed at 20% €807.70 €161.54
    Taxed at 40% €42.30 €16.92
    Gross tax   €178.46
    Less tax credits   €72.12
    Tax payable   €106.34

    This is how Jane's weekly tax is calculated for her second job:

    Jane's weekly tax calculation for her second job
     DescriptionIncomeTax
    Taxed at 20% 0 0
    Taxed at 40% €110 €44.00
    Gross tax   €44.00
    Less tax credits   0
    Tax payable   €44.00
  • Example 2 - Tax credits and rate band divided between jobs

    Paul is a PAYE worker and earns €500 per week in his main job. He gets a second job where he earns €450 per week.

    Paul is entitled to the following for 2024:
     Description Amount
     Weekly rate band  €807.70
     Weekly tax credits  €72.12

    Paul has been using most of his weekly tax credits and rate band against his main job. If he decides to divide them between the two jobs during the year, he may end up owing tax in his main job.

    To avoid this, if Paul tells Revenue he wants to divide his tax credits and rate band, we will send him revised TCCs on a Week 1 basis. (This means that Paul's tax credits and rate band are not backdated to the start of the year.) At the end of the year, Paul should submit an online Income Tax Return Form 12, available on PAYE services in myAccount. We will then review his tax position.

    Paul wants to spread his tax liability evenly between his two jobs:
     Description CalculationTotal
     Weekly rate band €807.70 €807.70 ÷ 2 €403.85
     Weekly tax credits: €72.12  €72.12 ÷ 2 €36.06

    Revenue send him TCCs showing these tax credits and rate bands. His employers are each sent a RPN showing the total amounts.

    This is how Paul's weekly tax is calculated for both his jobs:

    Paul's weekly tax calculation for his main job
    DescriptionIncomeTax
    Taxed at 20% €403.85 €80.77
    Taxed at 40% €96.15 €38.46
    Gross tax   €119.23
    Less tax credits   €36.06
    Tax payable   €83.17

     

    Paul's weekly tax calculation for his second job
    Description IncomeTax
    Taxed at 20%

    €403.85

    		 €80.77
    Taxed at 40% €46.15 €18.46
    Gross tax   €99.23
    Less tax credits   €36.06
    Tax payable   €63.17
  • Example 3 - Unused tax credits and rate band transferred between jobs

    Ruth is a PAYE worker and earns €300 per week in her main job.

    Ruth is entitled to the following for 2024:
    Description Amount
    Weekly rate band €807.70
    Weekly tax credits €72.12

    This is how Ruth's weekly tax is calculated for her main job:

    Ruth's weekly tax calculation for her main job
     DescriptionIncomeTax
    Taxed at 20% €300 €60.00
    Taxed at 40% 0 0
    Gross tax   €60.00
    Less tax credits   €60.00
    Tax payable   0

    Ruth gets a second job where she earns €190 per week. 

    Ruth does not need to use her full tax credits or rate band for her main job so she asks Revenue to transfer the unused amounts to her second job.

    Thus:
    • Ruth’s total weekly rate band is €807.70. She needs only €300 to cover her earnings in her main job so she can transfer the unused €507.70 to her second job.
    • Ruth's total weekly tax credits are €72.12. She needs only €60.00 to cover the earnings in her main job so she can transfer the unused €12.12 to her second job.

    Revenue send her a TCC showing these tax credits and rate band and send her employer (second job) a RPN showing the total amounts.

    This is how Ruth's weekly tax is calculated for her second job:

    Ruth's weekly tax calculation for her second job
    DescriptionIncomeTax
    Taxed at 20% €190 €38.00
    Taxed at 40% 0 0
    Gross tax   €38.00
    Less tax credits   €12.12
    Tax payable   €25.88

    Ruth gets a third job where she earns €140 per week. She asks for a TCC for this job.

    Thus:
    • Ruth's total weekly rate band is €807.70. She needs only €490 (€300 + €190) to cover the earnings in her other two jobs so she can transfer the unused €317.70 to her third job.
    • Ruth's total weekly tax credits are €72.12. As she has already used these in her other two jobs, she has no tax credits left to use in her third job.

    This is how Ruth's weekly tax is calculated for her third job:

    Ruth's weekly tax calculation for her third job
    DescriptionIncomeTax
    Taxed at 20% €140 €28.00
    Taxed at 40% 0 0
    Gross tax   €28.00
    Less tax credits   0
    Tax payable   €28.00

Published: 09 December 2024 Print this page

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