The Income Levy

[trellheim]

Is to be applied to RDF pay.

Does anyone know if it will apply to RDF Gratuity [ Yes I know it's taxfree, but is it levy-free ? ]

[Bravo20]

There is a revenue circular relating to the income levy (you should be able to download it from revenue.ie). Appendix B to that circular lists the types of payments that are exempt from the levy. On that list is the following:
Section 204 - Military & other pensions, gratuities and allowances

On that basis the gratuity is exempt from the income levy. Also the gratuity is not considered income for tax purposes, it is a re-imbursement of expenses.

[hedgehog]

Is to be applied to RDF pay.

Does anyone know if it will apply to RDF Gratuity [ Yes I know it's taxfree, but is it levy-free ? ]

I take it your running scared from the 2 % Levy

[trellheim]

I take it your running scared from the 2 % Levy

and who shouldn't aspire to try and be in that bracket then [ I'm not ]

[Goldie fish]

The question is, who decided the RDF are capable of earning in excess of 18grand a year?

[johnny no stars]

The question is, who decided the RDF are capable of earning in excess of 18grand a year?

probably the same person that figured it might just bump some people on the higher end of the payscale into the 2% bracket?

or maybe it was the person that went "hmmm.... will all of them even be bothered claiming it back...?"

[trellheim]

if you earn over 18k all leviable income [ civvy st and rdf ] you fall into the 1% bracket at least, therefore DOD must deduct it.

This is yet another consequence of direct PAYE for the RDF.

[hedgehog]

How will the RDF fair out with the

Car park levy

will the RDF who get big amounts of grat and especially those who may be selected to serve across the Tra

now be seen as quasi employees etc

[Goldie fish]

It's not limited to your RDF wages, [MOD: Leave unhelpful personal comments out ]

There are one or two lucky people out there whose salaries & RDF pay combined exceed 18k

But surely most of those attending camp as 2* or 3* have no other income(in these harsh economic times)

[colonel decker]

rdf people with no other income

This is a very good point the rdfra should be advised to seek exemptions for them as their annual average would be well below the threshold agreed the the Govt and ICTU for levy exemption.

[colonel decker]

I wonder if i spent my camp money on a bike to attend parades would the Department have to give me the grand a la the budget

[Victor]

I wonder if i spent my camp money on a bike to attend parades would the Department have to give me the grand a la the budget

You can ask, but they will probably look for a salary sacrifice.

[Goldie fish]

It is explained in the circular [mod: keep the personal comments to a minimum please]. The Department of Defence has a) no sight of your civilian earnings, if any, and b) because we are PAYE workers, the 1% is pro-rata.

Thank you sonny. As you know I don't have the same advantage as yourself in being able to read every single DF circular that comes out. But I'm glad there are people like you out there willing to keep me informed.

[Bravo20]

As Kermit says, the department of finance circular sets out the criteria for deducting the levy. Where employment is not continuous the levy must be calculated based on the weekly threshold of €352. On that basis the department of defence is obliged to deduct the levy. The circular also goes on to say that any over/under payments will be dealt with by the revenue.

[Goldie fish]

YAY! Refunds for everyone(Paid as credit in future years of course).