Job Assist. Employee Information IT58. Ver RPC001386_EN_WB_L_3

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Conrad Howard
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1 IT58 Job Assist Employee Information Ver RPC001386_EN_WB_L_3

2 HAVE YOU BEEN OUT OF WORK FOR SOME TIME, AND ARE NOW TAKING UP A JOB? If the answer is YES, then yo may be able to claim additional tax allowances. Revene Job Assist is available to help people who have been nemployed for 12 months or more, or single parents who have been similarly nemployed, to take p a job. A separate leaflet (IT 59) is available for employers which informs them how they can benefit. 1

3 HOW DOES REVENUE JOB ASSIST WORK? IF YOU HAVE BEEN OUT OF WORK FOR 12 MONTHS OR MORE and now TAKE UP A QUALIFYING JOB yo may get ADDITIONAL TAX ALLOWANCES OVER THREE TAX YEARS and sbject to certain limits and conditions yo may RETAIN YOUR MEDICAL CARD & SECONDARY BENEFITS (see page 8). HOW DO I QUALIFY FOR THIS SCHEME To qalify for this scheme yo mst have been continosly nemployed for the 12 months immediately prior to the date yo start the job. From 1 Janary 2010, p to 15 days of incidental employment, which has been taken into accont in calclating Social Protection benefits will not be conted (i.e yo mst have been in receipt of Social Protection payments for 12 months pls p to 15 days to inclde incidental employment days). Dring those 12 months (and p to 15 days, if applicable) yo mst have been in receipt of one of the following payments from the Department of Social Protection: Jobseeker s Benefit Jobseeker s Assistance One-Parent Family Payment Disability Allowance Blind Person s Pension. With effect from 1 Janary 2006, the following payments from the Department of Social Protection also qalify: Illness Benefit - where yo have been in receipt of the payments for a continos period of at least three years Invalidity Pensions - where yo have been in receipt of the payments for a continos period of at least one year. 2

4 What if I was on a FÁS corse or a training scheme? Time spent on: Certain FÁS training corses (non-apprenticeship) The Commnity Employment Scheme The Job Initiative programme The Workplace 5 week job experience programme The Back to Edcation scheme administered by the Department of Social Protection will also cont as periods of nemployment for Revene Job Assist provided yo were in receipt of one of the payments listed previosly, immediately prior to commencing the corse or scheme. What if I was in prison? With effect from 1 Janary 2006, if yo have been released from prison then periods spent in prison are deemed eqivalent to periods of nemployment. TAKING UP A JOB Revene Job Assist only applies if yo are taking p a job. It does not apply if yo are becoming self-employed. The job yo are taking p mst: Be for a minimm of 30 hors per week Be capable of lasting at least 12 months. Yo cannot claim the additional tax allowances if yo are benefiting from any other employment scheme sch as the Back to Work Allowance Scheme, administered by the Department of Social Protection. 3

5 There are also certain conditions attaching to the job which yo are taking p. For example: The employment mst not be primarily commission based (i.e. over 75% of earnings derived from commission) The previos holder of the job mst not have been nfairly dismissed There mst have been no redndancies in the company in the previos 26 weeks It mst not be an employment where the employer reqires no workforce. If yo are in dobt, yor new employer will be able to inform yo whether or not the job yo are taking p qalifies in this regard. ADDITIONAL TAX ALLOWANCES The additional tax allowances are an extra personal tax allowance and a child tax allowance for each qalifying child. These allowances are marginally rated which means they are allowed at yor highest rate of tax and appear as an increase to yor tax credits and rate band on yor tax credit certificate. The Revene Job Assist is added to yor other tax credits and rate band and can be claimed for three years. Also, this tax allowance can be claimed irrespective of yor marital or civil stats. Extra Personal Tax Allowance Child Tax Allowance for each qalifying Child Year 1 3,810 1,270 Year 2 2, Year 3 1, What income can I claim the tax allowances against? The tax allowances can only be set against income from the new job. 4

6 When can I claim the tax allowances? Yo can start to claim the tax allowances either: in the tax year* in which yo take the job or in the following tax year * The tax year rns from 1 Janary to 31 December. For example, if yo take p a job on 1 Jne 2011, yo can start claiming the tax allowances in either the tax year 2011 or If yor income from the new job in the first year is low, it may be more beneficial to wait ntil the following tax year to start claiming so that yo will get the fll benefit of the allowances. For assistance in choosing which tax year it wold be more beneficial for yo to start claiming the allowances, please contact yor Regional PAYE LoCall Service whose nmber is listed at the end of this leaflet. Example Yo, yor spose or civil partner have two children. Yo take p a Revene Job Assist qalifying job on 1 Jne 2011 and expect to earn 18,000 to 31 December Yo have also received 4,000 in taxable Jobseeker s Benefit to that date. Yor total taxable income for 2011 is 22,000 ( 18, ,000) and yor highest rate of tax is 20%. Therefore yor 2011 income tax liability is 20% = 4,400 less tax credits. Tax credits for 2011 are 6,220 - made p as follows: Married or Civil Partner s Tax Credit 3,300 PAYE Tax Credit 1,650 Total Ordinary Credits 4,950 Pls: Personal Job Assist Allowance (Year 1) 3,810 Child Job Assist Allowance ( 1,270 x 2) 2,540 Revene Job Assist Tax Credit 20% 1,270 Total 6,220 5

7 In this case it is more beneficial to wait ntil the tax year 2012 to start claiming the Revene Job Assist Allowances as yor ordinary tax credits of 4,950 cover yor income tax liability of 4,400 arising from yor taxable income of 22,000 for For 2012, yo have tax credits of 4,950 (Married or Civil Partner s Tax Credit 3,300 + PAYE Credit 1,650) pls the additional Revene Job Assist tax credits of 1,270 making yor total credits 6,220. If yo claimed the Revene Job Assist tax credits in 2011, yo wold have lost the benefit of the Job Assist Allowances for 2011 as yor income did not reqire them. Also as yo are now in yor second year of the Revene Job Assist scheme, yor total credits for 2012 wold be only 5,798, i.e. Married or Civil Partner s Tax Credit 3,300 PAYE Tax Credit 1,650 Total Ordinary Credits 4,950 Pls: Personal Job Assist Allowance (Year 2) 2,540 Child Tax Allowance ( 850 x 2) 1,700 Revene Job Assist Tax Credit 20% 848 Total Tax Credits for ,798 How do I qalify for the extra child tax allowance? An extra tax allowance can be claimed for each qalifying child. A qalifying child is a child of yors, yor spose or yor civil partner, who is: Under 18 years of age or Over 18 years of age and in fll-time edcation or fll-time training as an apprentice where the training is for at least two years or Permanently incapacitated either physically or mentally, having become so before reaching 21 years of age or after reaching the age of 21 bt while still in fll-time edcation or while training flltime for a trade or profession for a minimm of 2 years. The child mst be resident with yo for the whole or part of the tax year. 6

8 Can two people claim for the same child? Yes, bt only one allowance can be claimed for each qalifying child in any year. If two people are entitled to claim for the same child then the allowance is split between them as follows: Where the child is maintained by one person only, then that person receives the allowance Where the child is maintained jointly, then the allowance is split either in the same proportion as they each maintain the child or in sch manner as they jointly decide. Example Yo, yor spose or civil partner have both taken p jobs and yo are each entitled to claim the additional child tax allowance. Yo have two qalifying children. Yo contribte 3,000 towards the children s pkeep and yor spose or civil partner contribtes 1,000. The tax allowance for yor two children in Year 1 is 2,540 ( 1,270 x 2) Self: 2,540 x ¾ * = 1,905 * 3,000/ 4,000 Spose or civil partner: 2,540 x ¼ ** = 635 ** 1,000/ 4,000 Yo can also jointly decide to let one of yo claim the child tax allowance in fll or to have that allowance split between yo in any other way. Yo are both entitled to the 3,810 personal tax allowance for the first year of the claim. What happens if I change jobs? If yo change jobs once dring the three years yo can still keep the allowance. If however, yo move on to a third job yo will lose the allowance. Note: Yo can only claim this relief for one three year period. If yo claim the relief, become nemployed and then retrn to work again in the same three year period, yo can contine to claim. If yo claim the relief, become nemployed and retrn to work after the three year period, yo cannot claim the relief. Can I claim tax relief for earlier years if I was entitled to this allowance? A claim to tax relief mst be made within 4 years after the end of the tax year to which the claim relates. 7

9 Refnds: Tax refnds can be paid directly by cheqe to yor address or by direct transfer to yo Irish bank accont. It is not possible to make a refnd to a foreign bank accont. Can I retain my medical card and secondary benefits? Under Revene Job Assist yo can retain yor medical card for three years from the date yo retrn to work. Yo may also retain secondary benefits sch as rent or mortgage sbsidy, fel allowance, etc. for three years, sbject to certain income limits and other conditions. For qeries in relation to entitlement, or otherwise, to secondary benefits, contact the Health Service Exective directly at or visit Can I claim the Family Income Spplement (FIS)? Yes, yo can claim FIS (a weekly tax-free payment) if yor family income falls below a certain limit. For frther details contact the FIS Section in the Department of Social Protection, Family Income Spplement Section, Government Bildings, Ballinalee Road, Longford, Telephone (043) or (01) or LoCall HOW DO I MAKE A CLAIM? There is a claim form RJA1 attached to this leaflet. There are two parts to this form: Part 1 mst be completed by yo Part 2 mst be completed by yor employer to certify that the job yo are taking p qalifies for the scheme. When both parts of the form have been completed yo shold forward it to yor local Revene Office. Any Revene correspondence that yo receive will show the contact address of yor local Revene office or if yo visit and enter yor PPS nmber into or Contact Locator, the name, address and contact details of yor local Revene office will be displayed. 8

10 FURTHER INFORMATION This leaflet is for general information only. For frther information visit or phone yor Regional PAYE LoCall service, whose nmber is listed below. Border Midlands West Region Cavan, Monaghan, Donegal, Mayo, Galway, Leitrim, Longford, Loth, Offaly, Roscommon, Sligo, Westmeath Dblin Region Dblin (City and Conty) East & Soth East Region Carlow, Kildare, Kilkenny, Laois, Meath, Tipperary, Waterford, Wexford, Wicklow Soth West Region Clare, Cork, Kerry, Limerick Please note that rates charged for the se of 1890 (LoCall) nmbers may vary among different service providers. If yo are calling from otside the Repblic of Ireland, please phone Year Time Limit: A claim for tax relief mst be made within 4 years after the end of the Tax year to which the claim relates. Accessibility - If yo are a person with a disability and reqire this leaflet in an alternative format the Revene Access Officer can be contacted at accessofficer@revene.ie. This leaflet is intended to describe the sbject in general terms. As sch, it does not attempt to cover every isse which may arise in relation to the sbject. It does not prport to be a legal interpretation of the stattory provisions and conseqently, responsibility cannot be accepted for any liability incrred or loss sffered as a reslt of relying on any matter pblished herein. Revene Commissioners September

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