P21 balancing statement confusion

Tragedy

Iegistered for PAYE anytime to add rent relief and requested P21's for a few years while I was at it.

The 07 statement makes no sense to me at all, can someone explain why I owe tax, rather than being owed? On the 08 statement, tax credit and taxes deducted are added together, subtracted from tax due, and I'm left being owed money. For 2007, it's the opposite?

misspiggy40

CAN ONLY SAY WHAT HAPPENED TO ME.

I GET PAID FORTNIGHTLY

ONE YEAR WAS 27 PAYMENTS AND SO I OWED TAX BECAUSE WORK AT THE TIME HADN'T CALCULATED IT PROPERLY.

HOPE THAT POINTS YOU IN THE RIGHT DIRECTION

Legend100

that looks like an error but could you post the back of the p21 or sheet 2 if it came separately to see what is in panel 2

boodlesdoodles

The most important thing is to appeal this within the 30days, that's the statutory legal limit, if you snooze you lose and you'll end up in a protracted battle. I recommend you contact your local Tax office immediately, pm me basics of your address I don't need street etc just area and I'll let you know where you should go. The pre-emptive strike is always the best.

Squor

Hi, the PAYE anytime appears to have left off the PAYE tax credit. Here is how I see it

Taxaable income 9116@ 20% = 1823

You would be entitled to Personal Credit 1760 plus 20% of PAYE credit (only as your income was low) 1760@20% = 352

So 1823 - 1760 - 352 = 0 tax to pay as these credits are non refundable so the 490 you paid in tax needs to be refunded.

On the 27 pay days thing for forthnightly paid staff, at end of yr if you submit your stuf to revenue they are supposed to reduce your taxable income for calculations by I think .8% or somet, this allows the system to balance the anomaly

Sand Wedge

Squor, u have got the wrong end of the stick here. The 499 is not tax that he has paid but tax that he has to pay. Panel 2 on other side of P21 should give reasons for why he owes the 499.

Squor

Cheers Sand Wedge,

I missed the double entry there!!!!!!!! It says Taxes deducted at Panel 2 €499.89 and Underpayment €499.89. It looks a bit all over the place. Is there other income coded on the form somewhere else or underpayments from another yr or something, or perhaps Social Welfare unemployment benefit which is taxable included? I ask because I think €9117 as a single person for 2007 would be exempt because

9117 @ 20% = 1823.40 Liability

Less Tax credit 1760 & PAYE credit (1760@20%) 352 = 2112 Tax Credits

The credits are greater than the liability so there is no tax liability and €499.89 at Panel 2 should be refunded.
The adjustments at Panel 7A which are not viewable seem to be throwing out somewhere because Panel 4 says what I said just above that the Tax Credits are cancelling out the liability.