Staff members splitting tax credits. 10 September 2021

RMcH states: We have had a few Queries in relation to staff members returning to work and having 2 jobs and being taxed to much in one job. Your staff member will have to sort this issue themselves using the revenue My Enquiries section.Plese see below for information on how they can spit the credits.

Overview

The Pay As You Earn (PAYE) system treats one job as your main employment. Revenue will give your tax credits and rate band to that job.

If you work in two (or more) jobs at the same time, you can divide your tax credits and rate band between jobs. We will send an updated Tax Credit Certificate to you/

What to do if you get a second job

Your employer is obliged to register your new employment except where it is your first employment in the State. Your employer should register your employment with Revenue by requesting a new Revenue Payroll Notification (RPN) for you.

Where your employer does not register your employment, you may use Jobs & Pensions service in myAccount to register the employment yourself.

To make sure that you pay the correct amount of tax, you can allocate your tax credits and rate band between your existing and new employments. You can do this in myAccount via PAYE Services or by contacting us. Each employer will then receive an RPN which instructs them on the correct deductions to make.

You might be receiving a pension from a former employer (occupational pension). If you are, for tax purposes this is taken to be your main employment. Any other jobs you have are treated as second or multiple 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
• or
• 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

There is a facility in 'Manage Your Tax 2021' in the PAYE Services section of myAccount that will allow you to do this. In Manage Your Tax 2021, 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.

For more information see

https://www.revenue.ie/en/jobs-and-pensions/second-or-multiple-jobs/index.aspx