How to Avoid Emergency Tax
Whether you're re-entering the workforce after a long absence or changing jobs, this is a situation that's largely avoidable.

Firstly, you'll know if you've been emergency taxed if you see ‘emergency basis’ or tax code 'E' on your payslip.
Your new employer will only operate emergency tax in certain cases. In these situations, you'll get a temporary tax credit for the first month of employment but deductions will increase progressively from the 2nd month onwards.

However, there are ways to avoid it, such as giving your P45 and your PPS number to your new employer as soon as possible.
Your P45 will tell your new employer exactly how much tax, USC, and PRSI was deducted from your wages in your last job and they’ll use it to calculate your rate of income tax. The best place to get your P45 is from your previous employer and they should send it to you when you leave their employment.

You should also always give your new employer your PPS number. This number can be found on your public services card, tax documents and communications from your social welfare or tax office. It may also be on payslips from previous employment. However if you don't know your PPS number, you can contact your local social welfare office. 
If you can’t supply your P45 and PPS number, your new employer will deduct tax on an emergency basis.

Under the normal emergency tax rules (if you've given your PPS number to your employer) you'll get a tax credit and 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're single or married/civil partnership). So your income will be taxed at the standard rate until week 8 (inclusive) and then it's taxed at the higher rate.

Where you can’t supply a PPS number, your employer will calculate tax at the higher rate with no tax credit. When you subsequently provide your PPS number, the normal emergency basis will apply to the earnings in that and subsequent weeks.
The emergency rate of Universal Social Charge (USC) is a flat % rate (8% in 2018) applied to all income.

If you're entering the workforce for the first time and don't have a P45, then you should register the details of your new job with Revenue. It's best to do this as soon as you accept an offer, even if it’s only part-time or holiday employment. This gives your employer and the tax office time to get things sorted out before your first payday!
If you’ve been out of work for a while, you may not have a P45. In this case, you should contact your local Revenue office as soon as possible so your tax credits and cutoff point can be accessed.

If you take up a second job, the PAYE system will treat one job as your main employment. Revenue will then give your tax credits and rate band to that job. You should contact Revenue as soon as you start your second job to ensure you receive a separate Tax Credit Certificate for each employer. Without this, your new employer may deduct the incorrect amount of tax from your pay.

Once Revenue has the correct information for you, they'll send a Cumulative Tax Credit Certificate to your employer and they will then refund any overpaid tax and Universal Social Charge (USC) on your next payday.

If you were unemployed between jobs, then you may end up with unused tax credits, which could result in a tax refund, so it’s worth reviewing your tax position at the end of the year. This is typically the case if you were unemployed for at least 4 weeks.

Even though it can seems like the worst thing in the world, chances are you'll get back any overpaid tax promptly once you're back on the correct rate of income tax!

If you're confused by your payslips or want to find out if you’re owed a refund, simply apply at Taxback.com here for a no-obligation estimate.