The Foreigners Guide To Working In Ireland A practical guide to working in the Emerald Isle The Foreigners Guide to Working In Ireland The following booklet will provide you with a guide to some of the fundamentals of working in Ireland. Reading this booklet will give you an overview about residence permits, getting a PPS number, how to open a bank account and how tax is calculated. More information about your rights and responsibilities as a resident of Ireland can be found on www.citizensinformation.ie Coming from the EU to work in Ireland As an EU national you are entitled to come to Ireland to take up employment or self- employment. There are certain requirements in connection with residence permits that you need to fulfil. The same position applies for nationals from the European Economic Area countries (Norway, Iceland and Liechtenstein) and Switzerland. Residence permits As an EU national coming to Ireland to work or take up self-employment in Ireland, you are entitled to a residence permit. When you come to Ireland you do not have to report your presence in the country immediately. You must register within three months of your arrival and apply for a residence permit. To get a residence permit you should, if in Dublin, go to the Immigration Office and fill out the application form. In other areas, you should go to the local Garda station. You will need to show that you are in employment or self-employed. If you are employed, your employer must complete part of the form. If you are self-employed, you must show some evidence of this, for example, VAT registration or documents showing evidence of activity. Your dependants will have to show that they are dependants; marriage and birth certificates are usually required. A residence permit is granted for five years and is renewable. If you are refused a permit or if it is withdrawn, there are special procedures for appealing. The overall responsibility for residence permits rests with the Department of Justice, Equality and Law Reform. A form for an application for an Irish residence permit may be obtained from the Department. Rights while working in Ireland As an EU national working in Ireland, you are entitled to exactly the same rights as Irish citizens with regard to social welfare, employment and social rights generally. If you are posted here by your employer on a temporary basis, you are entitled to the equivalent of medical card services. If you are employed or self-employed and staying on a permanent basis, you come under the same rules for entitlement to health services as Irish nationals generally. Therefore, you must pass a means test to get a medical card. Personal Public Service Number To work in Ireland you will need to obtain a Personal Public Service Number (PPS No.) Your PPS number is a unique reference number that helps to you to gain access to social welfare benefits, public services and information in Ireland. State agencies that use PPS Numbers to identify individuals include the Department of Social and Family Affairs, the Revenue Commissioners and the Health Services Executive (HSE) Areas. The PPS Number is the new name for the Revenue and Social Insurance (RSI) number. If you already have a RSI number, it will not change, it will simply be known from now on as your PPS Number. You can use your PPS Number for: All social welfare services The Free Travel Pass Pupil ID Public health services, including the medical card and the Drugs Payment Scheme Child immunisation Schemes run by the Revenue Commissioners, such as Mortgage Interest Relief Housing grants Driver Theory Testing and driver licenses A PPS No. has already be issued to you if: You were born in Ireland in or after 1971 You started work in Ireland after 1979 You are in receipt of a social welfare payment You are taking part in the Drugs Payment Scheme. PPS Numbers are printed on the following documents: Social Services Card Drugs Payment Card P60 (the annual statement of pay, tax and social insurance contributions from your employer) P45 (the statement of tax and pay to date issued by employer when you leave employment) Tax Assessment PAYE Notice of Tax Credits Temporary Payment Card You cannot apply for a PPS Number before your arrival in Ireland. You must be already living in Ireland in order to apply for a PPS Number. You will be asked to produce documentary evidence of identity and residence in Ireland. Different documentary evidence will be required, depending on your nationality. The following is a list of documentary evidence required for EEA citizens (EU nationals - other than the UK –and citizens of Iceland, Norway and Liechtenstein) as well as Switzerland. PROOF OF ID - EEA citizens: Current Valid Passport or National Identity Card and Evidence of either birth/work/unemployment/residency/tax liability/education in an EU/EEA country or Switzerland and Evidence of address in Ireland The following will not be accepted as Proof of ID: Short version of a Republic of Ireland Birth Certificate Provisional Driving Licence Baptismal Certificate Personal letters Photo-copies of certificates Statements or Books for recently opened Savings Accounts The usual proof of address is a utility/household bill but if you don't have one the following are acceptable alternative documents showing address: Official letter/document, financial statement, property lease or tenancy agreement, receipt/bill for rented accommodation, a letter from your employer confirming employment and showing your address. If you are staying with friends or relatives and have none of the above documents then a letter from the householder confirming your residency is acceptable. You will appreciate that all above documents must show both your name and Irish address. If you are a married woman where no bills or documents are in your own name you should mention this and present the household bill. Only the Department of Social and Family Affairs can provide you with a PPS No. Contact your local social welfare office about applying for a PPS No. Your local social welfare office may assist you with your application or they may direct you to another social welfare office. If you do not know your PPS No., contact your local social welfare office and staff there will find your number for you. If you are unsure as to whether a particular organisation, person or agent is entitled to request or use your PPS No., you should contact the Department of Social and Family Affairs at (01) 704 3236 or e-mail email@example.com Getting a bank account Some form of bank account is necessary if you are living and working in Ireland. Having a bank account allows you to save money, to make financial transactions, to receive your pay etc. Financial service providers offer many different accounts. For example, banks, credit unions, building societies and An Post all provide a range of accounts. There are, generally, two categories of account; a current account and a deposit account: A current account allows you to make day-to-day transactions (i.e., paying a bill, receiving your salary straight to the account, making transactions etc.). These are offered only by banks and building societies A deposit account allows you to build up savings and you may earn interest on this money. These are offered by most financial services firms – banks, building societies and Credit Unions You should shop around to find the most suitable type of account for your needs. When you open an account try to assess what your needs are and how you need to store and access your money. Opening a bank account When you open a current account you should be aware of the services that you can have on the account. You should also be aware of the fees and charges associated with the account. When you open a deposit account you should know what percentage of your money you may earn in interest on your savings. You should also find out how you can access your money should you need it. A financial institution is obliged to establish your identity and verify your address before you can open a bank account. Before you open an account with a financial service provider, they are obliged to establish your identity and verify your address. Money laundering is the process where the source of illegally obtained money is disguised. Under the law, the minimum requirements for opening an account are to establish a true name and date of birth for the applicant and to establish the applicant's address. Most banks ask for a form of identification with a photograph on it (such as a passport or a driver's licence) and proof of address (such as a utility bill addressed to the applicant). You cannot use the same document as proof of both your identity and your address. These are minimum requirements and it is at the discretion of the bank to look for further information. The following is a list of forms of identification that provide evidence of your name and date of birth: Passport Current Driving licence Current identity card with a photograph from a known employer Current Student identity card with a photograph issued by a known third level college Identification card with photograph issued by an Garda Siochana (Please note that a USIT or International Student Identity Card (ISIC) is not acceptable nor is a bus pass) The following is a list of documents that provide evidence of your address: Recent original utility (for example electricity, gas or telephone) bill in your name Current Driving licence Identification card with photograph issued by an Garda Siochana Pension /benefit book issued by the Department of Social, Community and Family Affairs Recent original bank statement issued in your name Entry in the electoral register or a telephone or street directory An Post savings or investment document in your name Notice of Determination for Tax Credit from Revenue Commissioners Current Balancing Statement from Revenue Commissioners Current Household or Motor Insurance documents If you do not have any of the above documents the bank or other financial institution can ensure your identity in other ways. Contact the bank or financial institution to find an acceptable alternative. For customers who do not normally reside in the Republic of Ireland the bank or financial institution may ask for a reference from a bank in the home country of the applicant. How Your Tax is Calculated Tax on income you earn from employment in Ireland is deducted directly from your salary/wages by your employer. This tax is then paid by your employer directly to the Revenue Commissioners who collect taxes on behalf of the Irish Government. The 'tax year' in Ireland operates on the calendar year basis (i.e., January - December). At the start of each 'tax year', you will receive a statement from the Revenue Commissioners. This statement is called a "Notice of determination of tax credits and standard rate cut-off point". The Notice shows you the value of your tax credits and your standard rate cut off point. Tax Credits Tax credits are the part of your income on which you are not liable for tax. In other words, you do not pay tax on all of your income and you can earn or receive a certain amount of income before you begin to pay tax. What this amount will be depends on the value of your tax credits. Tax credits consist of various allowances and reliefs which you may be able to claim, depending on your circumstances. (Every individual can claim a personal allowance for example, and you can also claim relief for items such as private health insurance premiums, mortgage interest etc.). Details of all the main allowances and reliefs (including the amount due for the current year) are given on the explanatory leaflet issued to you each year from the Revenue Commissioners with your certificate of tax credits. This information is also available from your tax office or online from the website of the Revenue Commissioners. The Standard Rate Cut-off Point For each pay period, you pay tax at the standard rate (20%) up to your standard rate cut-off point. Your standard rate cut-off point is calculated by the Revenue Commissioners by adjusting your standard rate band (downwards for any non-PAYE income and upwards for any tax reliefs available at the higher rate of tax). Any income above your Standard Rate Cut-Off Point is taxed at 42%. To calculate out how much tax you will pay under the tax credit system, you need to do the following: 1. Tax all of your income to find your "gross tax". Income below the Standard Rate Cut-Off Point is taxed at 20%. Any income above the Standard Rate Cut-Off Point is taxed at 42%. 2. Take your Tax Credits away from your gross tax. This gives you the amount of tax you pay. Example Example of a single person without dependent children earning 30,000 euro over a full tax year. Step 1 - Calculate Gross Tax on 30,000 euro Tax 29,400 euro @ 20% (Standard Rate Band is 29,400 euro and there are no adjustments so standard rate cut-off point is 29,400 euro = 5,880 euro Tax the remaining 600 euro @ 42% = 252 euro Total gross tax = 6,132 euro Step 2 Tax Payable Total Gross Tax = 6,132 euro Less tax Credits = 1,580 euro Tax Payable = 4,552 euro The above is based on a full tax year. It is important to check with the Revenue Commissioners that you are claiming all the Credits you are entitled to (see Revenue leaflet IT1) Rules Your own personal circumstances will dictate the amount of tax credits you are entitled to. Further information about tax credits and revisions of existing credits is available from your local tax office. It's important to be aware that pay you receive through working extra hours (overtime), bonuses etc., is included as part of your taxable pay for that week or month. You do not get any additional tax-free allowances against these additional earnings. Tax is also payable on earnings of all kinds that result from your employment (including for example, bonuses, overtime, non-cash pay or 'benefit-in-kind' such as the use of company car, tips, Christmas boxes etc.). You do not pay tax on: Scholarship income, Interest from Savings Certificates, Savings Bonds and National Installment Savings Schemes with An Post, and payments to approved pension schemes How to apply Further information about the PAYE system of tax in Ireland, tax reliefs and rates for 2004 is available from your nearest tax office (remember to have your PPS Number to hand for enquiries). Information about tax and employment is also available online through the website of the Revenue Commissioners. The following forms are available from the Revenue Commissioners. Form 11 Form 11 Form 12 The Payment of Wages Act 1991 gives all employees in Ireland a right to a pay slip which will show the gross wage and details of all deductions. A pay slip is essentially a statement in writing from the employer to the employee that outlines the total pay before tax and all details of any deductions from pay. Your right to a pay slip is set down in Section 4 of this Act. Example of a pay slip Deductions from pay An employer may not make deductions from your wages unless: They are required by law, for example, tax (PAYE) and social insurance (PRSI), They are provided for in the contract of employment, for example occupational pension contributions. They are made with your written consent, for example, trade union subscriptions They are to recover an overpayment of wages or expenses They are required by a court order, for example, an attachment of earnings order in a family law case They arise due to your being on strike Where your employer suffers loss through your fault, for example breakages or till shortages or your employer supplies a service as part of the job, for example, a uniform, deductions may be allowed but only where: They are allowed for in your contract They are fair and reasonable You have received a written notice of the deduction - a full week's notice if the deduction arises from your mistake The amount of the deduction does not exceed the loss or cost of the service The deduction takes place within 6 months of the loss/cost occurring The information in this booklet is intended as a guide only. Please ensure you seek advice and information from your employer and your local authority if you are unsure about any of the above.
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