Overview: Money matters

When you return to work after a period of unemployment your new employer must deduct tax from your pay under the PAYE system. Your employer is also responsible for deducting your social insurance (PRSI) contributions and Universal Social Charge from your pay.

Your P60 certificate is issued at the end of each tax year and your P45 certificate is issued when you leave employment or change jobs. They are records of the amount you have been paid and how much tax, PRSI and Universal Social Charge you have paid.

You can find out more about Tax and starting work.

Work and benefits

If you are working and getting a taxable social welfare payment your social welfare payment is generally taxed by reducing your tax credits and standard rate cut off point. The only exception is Illness Benefit which is usually taxed against your earnings. You can read about which social welfare payments are taxable and how they are taxed.

If you are out of work due to illness or if you become unemployed you may be due a tax refund.

Tax for self-employed people

If you are thinking about setting up a business and becoming self-employed you will need to know about how self-employed people are taxed. The Start Your Own Business scheme provides a two-year exemption from income tax for people who have been unemployed for at least 12 months before starting their own business. It runs from 23 October 2013 to 31 December 2016.

Self-employed people pay Class S PRSI which entitles them to a limited range of social welfare payments – mainly pensions but also Maternity Benefit and Adoptive Benefit.

Dealing with debt

If you have been unemployed for some time you may have some outstanding debt. You can read information on problem debt and the steps you can take to manage debt problems.

Page updated: 19 September 2014