The basics for calculating tax - the tax rates, tax rate bands and personal allowances - remain the same despite changes in the Budget. For the 2000/2001 tax year the standard rate is 22 per cent and the marginal rate is 44 per cent.

Standard tax rate bands for single persons are applicable up to £17,000 (€21,585); married couples with one income up to £28,000; married couples with two incomes up to £34,000.

One significant change relates to the maximum transfer of bands between spouses which is now limited to £28,000.

Personal allowances are granted to single persons at £500 at 22 per cent (£110) and married persons at £1,000 at 22 per cent (£220). All allowances are standard rated from April 6th, 2000. Those allowances that were not standard rated in the past, like the age allowance, have been doubled to compensate for the rating change.

To calculate tax, the total annual income must first be placed into the relevant tax bands. For example, a married couple with two incomes falls into the £34,000 standard rated tax band. Under this new band, a maximum of £28,000 at the standard rate may be used by one partner.

The following examples only deduct personal allowances and PAYE, they do not include variables such as mortgage interest relief or VHI relief.

A couple earning a combined income of £40,000 with the husband earning £25,000 and the wife £15,000 may calculate tax in the following manner. The higher earning husband is taxed on £25,000 at 22 per cent (£5,500). The wife is taxed on £9,000 at 22 per cent (£1,980) and £6,000 at 44 per cent (£2,640). The couple's total taxable income, before allowances, equals £10,120.

Individual personal allowances for married persons are £4,700 at 22 per cent (£1,034 x 2) and PAYE allowances are £1,000 at 22 per cent (£220 x 2). The couple's combined total allowances are £2,508.

Total tax of £10,128 minus allowances of £2,508 equals £7,612 tax payable. This is a saving of £2,312 for the couple over 1999/2000 tax, which under the same income levels was £9,744.

A similar couple with one income of £40,000 and no children who are taxed under PAYE and pay full PRSI are liable for tax of £9,152 - a saving of £787 over last year.

A single person with a £40,000 salary pays £12,606 in tax if personal and PAYE allowances are taken into account. This is a saving of £1,421 over the 1999/2000 tax year.

For more information or to determine your liability using an online tax calculator look in www.ireland.com