The emergency tax must be used when:
- The employer has not received a Form P45 for the current tax year or previous year from the new employee, or
- The employer has not received either a Certificate of Tax Credits and Standard Rate Cut-Off Point or a tax deduction card for the current tax year, in respect of the employee, or
- The employee has given the employer a completed Form P45 indicating that the emergency basis applies or
- The employee has given the employer a completed P45 without a PPS number and not indicating that the emergency basis applies.
Tax is calculated on the gross pay (after deduction of pension contributions and permanent health contributions where relevant). Different rules apply depending on whether or not the employee provides an employer with his/her PPS Number.
The tables below outline the tax credits and cut off points applicable.
<h6>Employee does not provide a PPS Number</h6> Week or Month | Standard Rate Cut-off Point | Tax Credit | All | €0.00 | €0.00 |
<h6>Employee provides a PPS Number</h6> Monthly Paid | Standard Rate Cut-off Point | Tax Credit | Month 1 | €2,667 | €136 | Month 2 | €2,667 | €0.00 | Month 3 onwards | €0.00 | €0.00 |
Circumstances will arise where, for example, an employee starts employment without a PPS Number, provides it in say week 3, but still has not provided a P45 or Tax Credit Certificate. As the PPS Number has been provided, tax should be applied at Week 3 per the schedule listed above and continued into week 4 and 5 etc, as appropriate, until such time as a P45 or Tax Credit Certificate is provided.
Where on commencement of employment, the emergency basis applies, and the employee provides a PPS number, the employer must take reasonable measures to ensure that the PPS Number provided, refers to that employee. The employer will be regarded as having taken reasonable measures where he or she checks the PPS Number provided against any of the ollowing documents:
- A Certificate of Tax Credits and standard rate cut-off point in respect of a previous employment
- A P45 from a previous employment which shows the PPS Number in respect of an earlier year of assessment or from a former employer in respect of the current year of assessment where the P45 indicates that emergency tax applied
- A Social Welfare Services Card or PPS Registration Letter issued by the Department of Social and Family Affairs
- A notice of assessment to income tax or capital gains tax
- A P21 Balancing Statement
- A P60 issued by a former employer which shows the PPS Number
- Any other item of correspondence from the tax office which specifically quotes the PPS Number
- A payslip from a previous employer which shows the PPS Number
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