Skip navigation

ucd_wide_banner_img.gif
SEARCH UCD

Advanced Search
 
 
UCD Payroll Office
Oifig Párolla UCD

Tax Information

It is a function of Payroll to calculate, deduct and remit taxation on behalf of its employees.

Please select a link below to access information relating to your particular query.

Back To Top

What is PAYE?

PAYE stands for Pay As You Earn. PAYE is the name given to the income tax collected through payroll on behalf of the Revenue Commissioners (Irish Tax Authorities).

I am a New UCD Employee

Firstly, you must supply your PPSN (Personal Public Service Number).

New employees should also forward their original P45 to the Payroll Office.This will enable Payroll to make an application to the Revenue Commissioners and request that a Certificate of Tax Credits & Standard Rate Cut-Off Point be issued to UCD on your behalf. Please note that only original documents will be accepted.

You will be taxed on a temporary emergency basis until such time as a new certificate is issued.

If you do not have a P45, you should contact the Revenue Commissioners on Lo-Call 1890 333 425 and request that a Certificate of Tax Credits & Standard Rate Cut-Off Point be issued to UCD on your behalf. You will be required to supply Revenue with your PPSN and UCD's Employers Registered Number (0079124M).

This is my first employment in Ireland

Firstly, you must apply for a PPSN (Personal Public Service Number) from the Dept. of Social & Family Affairs.

Until such time as a PPSN is provided, tax will be calculated at a mandatory rate of 40%.

Upon receipt of your PPSN;

  • Notify Payroll immediately
  • Apply for a Certificate of Tax Credits & SRCOP using form (12A)

Back To Top

I am re-joining UCD after a period of employment elsewhere

You should forward an original P45 to the Payroll Office. This will enable Payroll to make an application to the Revenue Commissioners for a transfer of your Tax Credits & Standard Rate Cut-Off Point to UCD. Please note that only original documents can be accepted.

You will be taxed on a temporary basis until such time as a new certificate is issued.

If you do not have a P45, you should contact the Revenue Commissioners on Lo-Call 1890 333 425 and request that a Certificate of Tax Credits & Standard Rate Cut-Off Point be issued to UCD on your behalf.

You will be required to supply Revenue with your PPSN and UCD's Employers Registered Number (0079124M).

If you are unable to provide a P45, you will be taxed at the Emergency Rate until such time as a new certificate is issued.

I think I have overpaid my tax- what should I do?

Current Tax Year:

Your PAYE is calculated in accordance with the most recent Cert of Tax Credits & SRCOP issued by the Revenue Commissioners.

You should check that the details on your copy of the Tax Certificate are correct and in line with your own personal circumstances. Should any of the details need amending, you must contact Revenue directly as any alteration can only be made by a Revenue Official.

Once an amended certificate has been issued and received by Payroll, it will be applied in the next payroll run.

Previous Tax Year:

Adjustments in tax can only be made through Payroll within the current tax year. Should you wish to have your tax reviewed for previous years, you must forward your P60 to the Tax Office with which you are registered and request a Balancing Statement (P21).

Revenue will re-assess the PAYE you have paid in accordance with your total taxable income for the year and make any adjustment as necessary. A Balancing Statement will issue followed by a refund cheque where applicable.


Back To Top

What is UCD's Employers Registered Number?

Each employer in the state has a unique number, which identifies them to state agencies.

All returns and official documents submitted by an employer will quote the Employer's Registered Number and hence allows for correct administration of records.

UCD Employer Registered Number is : 0079124M

If you are contacting the Revenue Commissioners or have queries with the Dept. of Social Protection it is often useful to have this number to hand.

What are the Current Rates of Taxation?

There are currently two basic rates of PAYE in operation, 20% and 40%. The proportion of your income charged at each rate will depend on your Personal Circumstances. There is a further rate of Taxation in Operation with effect from Tax Year 2006 - Marginal Rate. A small number PAYE customers aged 65 years and over are entitled to Tax Exemption and Marginal Rate Relief. This means that when their taxable income exceeds a certain limit, a tax rate of 40% as opposed to 41% is applied.

The Revenue Commissioner decide upon a PAYE customer’s entitlement to this relief.  Any queries with regard to Marginal Relief should be directed to Revenue.


Back To Top

How is my Tax collected and paid?

It is the responsibility of UCD as your employer to collect PAYE from your taxable income and remit it to the Revenue Commissioners.

The level of PAYE deducted from your income will be dependent on the instructions contained on your most recent Certificate of Tax Credits & SRCOP.

What is the Normal Tax Basis and Week 1/Month 1 Tax Basis?

The normal basis of PAYE taxation operates on a Cumulative Basis from the beginning of each tax year.

As taxable earnings accumulate from the beginning of the year, so does the PAYE customers entitlement to Tax Credits and SRCOP. In effect, each time an individual receives a payment through the PAYE system, their tax liability is re-calculated from the beginning of the year. Total PAYE falling due to that point in the tax year is compared against PAYE already paid, the difference being the amount of PAYE payable in the current period. This method of calculation allows for rebalancing of PAYE through the payroll system during the course of a tax-year. The vast majority of Tax Certificates are issued on the Cumulative Basis of Taxation.

The Week 1/Month 1 (also called the Temporary Tax) Basis, applies one week or months worth of Tax Credits and SRCOP (depending on the pay interval applicable), to the value of taxable income received in the pay-period in question. No consideration is taken of accumulated earnings or previous PAYE paid in the calculation of tax liability due. Hence this method does not allow for rebalancing of PAYE throughout the course of the tax year.

There are a number of reasons why you may be subject to a Week 1/Month 1 Basis.

  • If you have recently changed employers, your new employer will operate the Week 1/Month 1 Basis until such time as Revenue have registered you to your new employer, confirmed details of prior earnings and PAYE paid within the tax year, and have issued a Cumulative Tax Certificate.

  • Certain Social Welfare Benefits are subject to the operation of PAYE.  If you have been in receipt of benefits, Revenue will apply the Week 1/Month 1 Basis until such time as they are confident all taxable income has been assessed and accounted for.

  • Gaps in registered employment history can also lead to a Week 1/Month 1 Basis being applied, as Revenue will want to ensure details of all taxable income has been made known to them before a Cumulative Certificate is issued.

These are the most common reasons for the application of a Week 1/Month 1 Basis. By contacting Revenue directly you can often accelerate the process of obtaining a Cumulative Tax Certificate.

Back To Top

When does the Tax Year Start?

The Irish tax year is based on a Calendar year and so commences on the 1st January and ends on 31st December each year.

What documents should I receive from the Revenue Commissioners?

All PAYE customers should receive a notification of their Tax Credits & Standard Rate Cut-off Point from the Revenue Commissioners for each tax year.

You should be able to view your tax certificate through your PAYE anytime account if you use Revenue's online service (R.O.S.).

If you change employers during the course of a tax year, you should also receive a revised certificate made out to your new employer.

Back To Top

What are Tax Credits?

Under the PAYE system of tax collection, all PAYE customers are entitled to tax credits, which vary in relation to personal circumstances.

Each individual will be entitled to a Personal Tax Credit as well as a PAYE Tax Credit.

Your employer will use your credits to reduce your PAYE liability due in accordance with the instruction issued by Revenue.

What is a Standard Rate Cut-Off Point?

Standard Rate Cut-Off Point describes the point to which your earnings will be assessed at the lower rate of tax (currently 20%). All taxable income above the SRCOP will fall due for assessment to PAYE at the higher rate of tax (currently 40%).

Your Tax Certificate will outline your SRCOP and the manner in how this figure was arrived at.

Any queries in relation to your SRCOP should be directed to Revenue.

What is Benefit-in-Kind?

With effect from 1st January 2004, is it the obligation of employers to operate PAYE and PRSI on taxable benefits provided by the employer to their employees.

The value of the BIK is considered to be Notional Pay for the purposes of calculating PAYE and PRSI. The benefit received will be assessed in accordance with your most recent Certificate of Tax Credits & SRCOP.

Back To Top

I have a second job- what should I do about my tax?

Each PAYE customer is entitled to one amount of Tax Credits and SRCOP, which are issued on the basis of their own personal circumstances.

If you are employed by two or more employers, you can arrange to have your Tax Credits & SRCOP split between your employments in a manner that will make best use of your entitlements.

You should contact Revenue, outlining your expected earnings from each employment. You should also be in a position to quote the Employers Registered Number of each place of employment.

Revenue will split your entitlements between your places of employment, notify your employers of same, and issue a Certificate of Tax Credits & SRCOP to your home address.

Your PAYE will be assessed in accordance with certificates issued.

Back To Top

What is a P60?

A P60 is a statement of taxable earnings and income tax paid in a tax year. Your P60 will also show details of your PRSI contributions and class in a tax year.

It also details your USC paid and any Local Property Tax deducted in any one year.

P60s are valuable documents and should be kept in a secure manner.

All employees who are in the service of an employer as at 31st December each year is entitled to a P60. 

What is a P45?

A P45 is a Cessation Certificate and details the Particulars of an Employee to the date of leaving the service of an employer.

A P45 has particular Revenue and Social Welfare applications.

A P45 is a valuable document, which should be kept in a secure manner.  

Why is my level of Tax fluctuating?

The Irish PAYE (Pay As You Earn) system operates on a cumulative basis from the beginning of each tax year .

If you receive the exact same taxable pay in each pay period, and your entitlements to Tax Credits and SRCOP remain unchanged, then you would expect to pay a consistent amount of PAYE in each pay-period.

If you receive varying levels of taxable income, the PAYE liability arising on your payments will be calculated inline with your accumulated entitlements based on your tax certificate and your accumulated level of income received since the beginning of the tax year. 

If you receive varying levels of payment and/or, are paid on an intermittent basis, it is not uncommon to see varying levels of PAYE being deducted. The normal basis of PAYE taxation allows for this and will balance out your PAYE upon receipt of each payment.

In cases where a Week 1/Month 1 (Temporary) basis of taxation is applied, no provision is made for adjustments in PAYE during the course of the tax year.

I am a Lecturer/Professor in UCD - what expenses am I allowed to claim on my Tax Return?

Certain categories of employees are allowed to claim a flat rate Schedule E expense as by the nature of the work performed, certain outlays are 'wholly, exclusively and necessarily incurred in the performance of their duties'.

College Lecturers and Professors are covered by Schedule E.

Back To Top

UCD Campus
Tax Information