What is Emergency Tax?
Emergency tax is the higher rate tax basis that your employer must apply to your earnings when it is not clear what tax band you should be in.
When is it applied?
You will be placed on Emergency Tax when:
- You haven’t given your employer your Personal Public Service Number (PPSN)
- Your employer hasn't received a Revenue Payroll Notification (RPN) for the current year
Emergency Tax will be applied if any of the above situations are true, however, different Emergency Tax rules apply depending on if you have provided a PPSN or not. If you provide a PPSN “normal Emergency Tax rules” apply.
If you’re interested in the details of the different tax credits, rate bands and tax rates for the various weeks of employment under normal Emergency Tax rules continue reading below. However, you might prefer to skip ahead, click here to jump to claiming Emergency Tax back.
Normal emergency tax rules
Under the normal emergency tax rules (if you have given your PPSN to your employer), you get a tax credit and a rate band for your first weeks of employment. These are based on the Single Person Tax Credit and rate band for the tax year (whether you are single, married or in a civil partnership).
Your income is taxed at the standard rate until Week 8 (inclusive), and then it is taxed at a higher rate.
|Emergency tax: tax credits, rate bands, and rates|
|Weeks of employment||Tax credit||Rate band||Tax rate|
|Week 1 to 4||1/52 of Single Person Tax Credit||1/52 of single personal rate band||Standard rate|
|Week 5 to 8||No tax credit||1/52 of single personal rate band||Standard rate|
|Week 9 onward||No tax credit||No rate band||Higher rate|
What happens if you do not give your employer your PPS Number?
Your employer will tax you as if it were week 9 under normal emergency tax rules. You will be taxed this way until you provide your PPS number.
It’s also worth noting that the emergency rate of USC (Universal Social Charge) will also be applied to your earnings at a rate of 8%.
How to claim a refund?
If you have already given your employer your PPSN you should inform Revenue of your job through your myAccount on Revenue’s website: click here. If you don’t have a myAccount, click here to register. Once logged in you can go to PAYE Services and select Update job or pension. Here you can add in your new job or end a previous one, you will then receive an amended tax credits cert. This will prompt Revenue to issue an RPN to your employer which they can process and once processed your employer with refund any tax and USC (Universal Social Charge) that you’ve overpaid on your next payday.
Note: The amount refunded comes from Revenue and not your employer
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