The Pay and File deadline for the 2022 Income Tax Return (Form 11) is Wednesday 15 November 2023. This deadline is for customers who file and pay on Revenue Online Service (ROS).
To calculate your Income Tax, you will need to understand how tax credits and rate bands work.
How your Income Tax is calculated
If you are paid weekly, your Income Tax is calculated by:
applying the standard rate of 20% to the income in your weekly rate band
applying the higher rate of 40% to any income above your weekly rate band
adding the two amounts above together
deducting the amount of your weekly tax credits from this total.
If you are paid fortnightly or monthly, the same principles apply.
Payroll tax is normally calculated using the ‘cumulative basis’ for each pay day. All income and tax credits from the previous 1 January are accumulated to ensure you have paid the correct tax. This ensures that you have received the benefit of all your tax credits to date.
Sometimes tax is calculated using the Week 1 basis. This means that each pay day is dealt with on its own, separate from previous weeks. Income and tax credits are not accumulated from 1 January.
