Paying massive PAYE this month.

Sparky

Hey all,

Tax confuses me, so I need some assistance here.

This months payslip shows that I have a deduction of 455.00 euros on PAYE and payroll informed me that this was due to a new tax cert for me. So I rang up the revenue and they informed me that it was due to me applying for rent tax Credits and that I am paying backdated tax to January.

The reason being is that the landlord is a non resident and that there is an extra 20% to be payed!

The thing that confuses me is where is the credit in it all, now that I am paying more tax? I feel like I should not have bothered at all and would still have an extra 100euros in my pocket per month.

Where do I go from here? Do I have to contact the landlord and ask for a reduction in rent due to this now?

Mr. Incognito

I've seen this come up quite frequently in the last 6 months.

Payments made to non resident landlords are supposed to be made less 20% withholding tax.

Similar thread here which pretty much covers it

http://www.boards.ie/vbulletin/showthread.php?t=2055558698

Ticktactoe

Sparky wrote: »

Hey all,

Tax confuses me, so I need some assistance here.

This months payslip shows that I have a deduction of 455.00 euros on PAYE and payroll informed me that this was due to a new tax cert for me. So I rang up the revenue and they informed me that it was due to me applying for rent tax Credits and that I am paying backdated tax to January.

The reason being is that the landlord is a non resident and that there is an extra 20% to be payed!

The thing that confuses me is where is the credit in it all, now that I am paying more tax? I feel like I should not have bothered at all and would still have an extra 100euros in my pocket per month.

Where do I go from here? Do I have to contact the landlord and ask for a reduction in rent due to this now?

Hey Sparky

Unfortunatley because your landlord is non-resident the rent credit does not apply to you. When you pay your landlord the rent you are suppose to hold 20% of it and pay it over to revenue. As it is now May it is calculated back to the beginning of the year and therefore a lump of tax was deducted. The unfortunate thing also is you will now be deducted a certin amount more from your wages going forth because of this. It wont be as much as the lump sum because that is taking into account 4 months and this month.

The Blonde One

Did you know your landlord was non-resident? I would advise you to ring Threshold, they'll be able to give you advice....

Sparky

OK so long story short our landlord was not aware of this whole thing and was confused as I was.
What I need to find out now is if this is taken from me the same way they took back pay, or do I have to set up some form of direct debit to the taxman?

antoinolachtnai

I would just tell the landlord that you are witholding the money.