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13-09-2011, 18:32   #1
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Claiming Tax Credits (P50) and Form PH1

Hi Guys,

I applied for the tax back (P50 alongwith P45) and stated the reason as "Going abroad" in the revenue form P50. Now, i have recieved a letter from revenue that my claim has been selected for verification and they require - as it stated in the communication reference "Income Continuance" - following:
Please forward documentation (form PH1) from your provider in support of your claim, together with confirmation from your employer that the 'net pay arrangements' was not operated.
I guess its the most vague letter i have recieved to date; since i am no longer in Ireland and have to call revenue for clarifications, it would be great if anyone could decipher the mystery of above text before i call them? So some questions,
1. What the hell is form PH1?
2. Who is my "provider"?
3. Is the employer meant my last employer?
4. What is net pay arragements operation?
5. Finally, why its called Income Continuance since i applied for tax back as i was leaving (now left!) the country?

Any ideas?

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14-09-2011, 23:39   #2
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Sounds like they are requesting a copy of your work permit ( permit holder = PH )

They are of the opinion that you may have been working abroad , and are now interested to see how your payroll operated your earnings in this other country , for the remainder of the year .
  1. Income continuance - ( may mean you income in this other country )
  2. Employer - May mean your current employer in this other country .
  3. Its paye in Ireland - Net pay arrangement may mean the system in this other country.
  4. The provider may be the Department of jobs , enterprise and innovation
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14-09-2011, 23:50   #3
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Income continuance is another name for a permanent health policy - it provides you with an income if you are unable to work because of sickness or disability.

The premiums are allowable for tax purposes - and form PH1 is the form issued by the insurance company.

If you've been claiming relief for those premiums Revenue are just checking that you've paid them. Otherwise they're going to be looking for you to pay tax back to them.
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16-09-2011, 10:11   #4
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This is a new one.

Some joke.

What they seem to be trying here is to tax you on your foreign income after the date you left on the basis that you would still be resident for the rest of the year.

Your PH1 is your Work Permit.

I HATE HATE HATE Red Tape Clowns like this.

The easiest way to get around this is to apply for S822 Relief- There is a sticky on it above.

Basically send them a reply that you wish to apply S 822 from the date of departure and that means you are non resident from the date of leaving. In the same letter say that you wish to allocate your unused credits against your employment income.

As such the foreign income is no longer in the charge to Irish tax and they have no right to seek details of foreign employment. All you have to do is satisfy Revenue that you left with the intention of remaining abroad for the tax year 2012. If they get nasty or technical about it Point out the revised Revenue Code of Practice which means that Revenue must be fair and reasonable in it's dealings.

If you need any help fire me a pm as I hate nonsense like this.
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16-09-2011, 10:58   #5
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My read of this is that they are looking for information about PHI rather than PH1 (I don't know what a PH1 is and a Google search didn't reveal anything helpful). This would explain the reference to 'net pay arrangements' in the letter received from the Revenue Commissioners.

PHI is the abbreviation for Permanent Health Insurance (better known as 'Income continuance' or sometimes 'Income Protection'). I think - as nompere advises- that the tax office is checking the detail of the claim for a PHI premium that you said you were paying when you submitted your P50 and P45 (this would refer to the portion of the calendar year during which you were last working in Ireland).
In many cases, you can put the premium through as part of your payroll deductions, in which case the tax relief is given automatically. If, however, you didn't do it that way - and paid it say by direct debit out of your bank account- then you need to apply for the tax relief separately.
The application for tax relief requires that you send in the form from your 'income continuance' insurer which will verify the amount paid. Additionally, the tax office is looking for verification from your employer that the premium was NOT paid by payroll deduction- I'd imagine that a letter from the employer should suffice.

So- you need to do two things:
  1. Request a copy of your PHI document from your insurer for the relevant year.
  2. Request your previous employer to send a headed-paper letter stating that the PHI was NOT deducted from your payslip.
When you (or whoever your agent is in Ireland) receive both of these things, submit them with a covering letter to the Irish tax office. that should sort it.
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