Happy St Patrick's Day

[BobKamman]

      How They Do It In Ireland

What is PAYE?

PAYE stands for ‘Pay As You Earn’. If you are an employee, you normally pay tax through PAYE.

Every time your salary is paid, your employer deducts Income Tax (IT), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) and pays the amount deducted to Revenue. PAYE ensures that the yearly amounts you have to pay are collected evenly on each pay day over the course of the tax year.

PAYE is also used for people who receive an occupational pension from a previous employer.

You may be entitled to tax credits and to tax reliefs and exemptions to reduce the amount of tax you pay.

If you are a PAYE customer, please see how to review your tax for any of the four previous tax years.

If you work for an employer and pay tax under the PAYE system income earned from employment is taxed at source by your employer. However the amount deducted can vary depending on your personal circumstances and your tax credits. For example, if you are married or in a civil partnership, this may affect your tax bands and tax reliefs.

Compliance Code for PAYE tax payers

You should make sure that Revenue is aware of the factors that may affect the amount of tax deducted from your earnings. Do not assume that Revenue has access to up-to-date information about your circumstances. Revenue’s Compliance Code for PAYE Tax Payers (pdf) advises you to:

Check your Tax Credit Certificate each year and make sure that you are entitled to the tax credits that have been allocated to you and that you are claiming any tax credits you may be entitled to. You can use Revenue’s PAYE Online Services to view or print your Tax Credit Certificate or phone Locall xxx to request one.

Tell Revenue about any changes in basic personal details such as a change of address as well as changes in your circumstances that may affect your entitlement to a tax credit(s). In particular you should tell Revenue about significant life events such as marriage or civil partnership or bereavement as soon as possible.

Keep all relevant documentation (such as medical receipts) to support your claims for tax credits, reliefs and allowances. You must keep all supporting documentation for 6 years from the end of the year to which the claim or liability refers.

Inform Revenue of any non-PAYE sources of income you have such as rental income, dividends, Department of Social Protection payments and pensions. Any additional non-PAYE income may be subject to tax, PRSI or Universal Social Charge (USC) and it is important that you pay any tax that is due to avoid building up a tax liability.

Under self-assessment there is a common date for the payment of tax and filing of tax returns. This is 31 October each year. This system, which is known as Pay and File allows you (or an agent) to file your return and pay the balance of tax outstanding for the previous year at the same time. Under this system you must:

Pay preliminary tax for the current tax year on or before 31 October each year – the deadline for people who file online using Revenue’s Online Service (ROS) is usually slightly later. In 2020, the deadline for people who pay and file online is extended to 10 December 2020.

Make your tax return after the end of the tax year but not later than the following 31 October.

Pay any balance of tax due for the previous tax year on or before 31 October.
Pay any Capital Gains Tax on disposals made between 1 January and 30 September of the current tax year.

https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/how_to_comply_with_your_tax_oblig...

(I'm wearing orange today, happy that my ancestor Ann Murphy from County Antrim married a Scotsman from the Kintyre Peninsula and emigrated to Coshocton, Ohio in the 1830s.)

[IRonMaN]

I don't have anything to add other than some additional color to this page.