If you're going to Ireland to work it's important to know a few Irish tax facts to make sure you don't end up losing your money.
When you start work in Ireland you need to make sure you give your employer your PPS Number so you avoid paying emergency tax – which is much higher than the normal Ireland tax rates. A Personal Public Service (PPS) number is the unique reference number issued to you by the Department of Social and Family Affairs. It enables you to work, pay taxes and access public services in Ireland.
PAYE and Self-employed tax
Once you start working you will need to pay Ireland tax either as a PAYE employee (if you're a receptionist, nurse or a teacher for example) or as self-employed person, such as a construction subcontractor.
If you're a PAYE (Pay as You Earn) worker, such as a receptionist or a teacher, your employer will deduct these taxes and PRSI from your earnings.
If you're self-employed, such as a construction subcontractor, or if you have any additional income outside of your PAYE earnings, you are responsible for your own tax and must declare all your income through a self-assessment tax return.
If you've started work already in Ireland you will be paying 20% income tax on earnings up to €35,400 and 41% on any earnings over that, as well as paying PRSI contributions. PRSI is made up of social insurance and health contributions.
Claim your Ireland taxes back
The Irish tax year is from January 1st to December 31st and you have up to four years to claim any overpaid tax back. You can apply for your 2009 PRSI refund at the end of the tax year or now as far back as 2003
If you want to find out how much you could be owed, you can use a free online tax refund calculator.
To claim your Ireland tax refund, you need to file a tax return. A tax return is the annual submission of tax forms documenting your earnings, taxes paid, deductable expenses and allowances that you send to the tax office for review. They review it according to the information submitted by your employer and the current laws that apply to your case.
If you get a tax refund, this means the tax office review found you had overpaid Irish tax and were due some back.
You can claim tax credits and allowances including:
- PRSI contributions
- Medical and dental expenses
- Rental relief
- Tuition or trade union fees
- Service charges
- Single parent allowance
Taxback.com Taxback.com organises tax refunds for non-residents who work in Ireland. We specialise in Ireland tax returns for PAYE, Self-Employed and construction workers. If you haven't set up your PPS Number yet, taxback.com can also help you with this.
Taxback.com customers get average Irish tax refunds of €840.