How to assign Tax Credits to the current employer in Ireland?
Assigning your tax credits to your current employer in Ireland is essential to ensure that the correct amount of tax is deducted from your salary. This process helps you make full use of your tax credits and standard rate cut-off points, reducing the amount of income tax you owe. This guide provides a step-by-step process to help you assign your tax credits to your employer efficiently.
Why Assign Tax Credits to Your Employer?
Tax credits reduce the amount of income tax you pay. By assigning your tax credits to your employer, they can calculate your tax deductions accurately each pay period, ensuring you are not overpaying or underpaying taxes.
Steps to Assign Tax Credits to Your Employer
Register for myAccount with Revenue:
- If you have not done so already, register for myAccount on the Revenue Commissioners (Revenue) website. This is an online portal where you can manage all your tax affairs.
- Go to the myAccount registration page and follow the instructions to set up your account.
Log in to myAccount:
- Once registered, log in to your myAccount via the Revenue website.
Access ‘Manage Your Tax’:
- After logging in, select the "Manage Your Tax" option from the main menu.
Assign Your Tax Credits:
- In the "Manage Your Tax" section, navigate to "Jobs and Pensions."
- Select the option to add or update your current employment details.
- When prompted, enter your employer's details, including the employer’s PAYE Registration Number, which you can find on your payslip or obtain from your employer.
- Review all the entered details to ensure they are correct, then confirm that your tax credits are assigned to your current employer.
Revenue Updates Your Tax Credits:
- Revenue will process your request and update your tax credits accordingly.
- You will receive a new Tax Credit Certificate (TCC) outlining your tax credits and standard rate cut-off points. This document will also be sent to your employer electronically.
Employer Deducts Correct Tax:
- Your employer will receive your updated TCC through Revenue’s online system.
- They will adjust your payroll to reflect the correct tax credits, ensuring that the appropriate amount of tax is deducted from your salary.
What to Do If You Have Multiple Employers or Pensions
- Multiple Employers/Pensions: If you have more than one source of income, such as multiple jobs or a pension, you can divide your tax credits and standard rate cut-off point between them. This can also be done through the myAccount portal.
- Review and Adjust: Regularly review your tax credits to ensure they are correctly assigned, especially if your employment circumstances change.
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