Whether you're in the UK on the Youth Mobility Scheme or in Ireland on a working-holiday agreement, income tax works very differently in each — and Ireland's credit system in particular trips people up. Here's what you'll actually pay.
UK income tax bands (2025/26)
| Income | Rate |
|---|---|
| Up to £12,570 (Personal Allowance) | 0% |
| £12,571 – £50,270 | 20% |
| £50,271 – £125,140 | 40% |
| Over £125,140 | 45% |
On top of income tax there’s National Insurance (separate). Scotland has its own bands. Example: earn £25,000 → tax is 20% of (£25,000 − £12,570) = 20% × £12,430 = £2,486 income tax for the year.
Ireland: bands plus tax credits
Ireland (2025, single) charges 20% up to €44,000 and 40% above — but then subtracts tax credits (about €2,000 personal + €2,000 employee = €4,000). Those credits are the key: they can wipe out the tax on a modest income entirely.
Example: earn €25,000 → 20% = €5,000, minus €4,000 credits = €1,000 income tax. (USC and PRSI are separate.) Without understanding the credits, you’d wildly overestimate your bill.
Getting a refund
Both countries over-withhold often, especially if you start mid-year or change jobs. In the UK check your Personal Tax Account; in Ireland use Revenue myAccount to claim back what you’re owed.
Track your UK or Irish pay and get a running income-tax estimate.
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