Hi there, I have 2 questions. 1) The USC band rates on my Tax Credit for state rate 1 is 12,012 at 1% and rate 2 is 6,665 at 3% etc. However the app does like the fact that rate 2 is lower than rate 1. Is this as simple as switching the rates? Would this effect my tax bill to the USC? 2) MY business is variable and I may have more business one month than the next month. Can I have a variable wage how can I set that up and does a variable wage have any consequences to my tax? Thanks for the help. Really impressed with the app!
In terms of the USC rates. The way that it’s written on the tax credits is that it’s:
- 1% on the first €12,012
- 3% on the *next* €6,656
To enter this into Bullet, add €6,665 to €12,012 is €18,668 – so you’d enter that in Bullet for the 3% rate (and so on for the other USC rates). Note that if you have access to ROS (the Revenue Online Service), it’s *way* easier to download the P2C file from there and import that into bullet – that will import all your tax details straight from Revenue without you having to type anything in.
On the variable pay – the app can handle that. Any unused tax credits you have in one month carry forward to the next month. The idea is that over the whole year, you’ll end up paying the same as someone who got paid the same constant amount of money. There are plenty of people running their own businesses that have sporadic pay, and the tax system is (more or less) there to help with that.