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Revenue reduced my maternity tax refund, advice please.

  • 24-02-2010 11:12am
    #1
    Anfield Road
    Registered Users, Registered Users 2 Posts: 33 ✭


    Hi all,

    I went on maternity leave last July until January this year. I was let go while I was on maternity leave and not entitled to any redundancy as I was not there the required time. I was on the state maternity benefit from July to January.
    So, I rang revenue before Xmas and they told me I was due a fairly decent tax refund, so I sent in my form P50 along with my P45. I was given a figure and told I would recieve it in 7-10 days. When nothing arrived I rang them and they said it was just volume so I left it at that.
    Anyway, ring them again this morning wondering what is happening and they tell me yes it was posted out but is significantly less that I was due because my husband has been on jobseekers benefit since last October and we are jointly assessed.
    Is this right?, can a jobseekers claim affect my taxes?. I am starting a new job in March and now worried sick that my tax credits will be reduced as well just because my husband is on jobseekers. We have worked all our lives and this has really upset me, it's bad enough being on state benefits and struggling to survive with young kids and then for it to be taken off you when you actually work!.
    Thanks for reading!


Comments

  • #2
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    Hi there,

    Social Welfare believe it or not is seen as as emolument or wages so to speak.

    As such it is added to your gross income and the total amount is taxed if you are jointly assessed.

    One way around this is to apply to be seperately assessed for last year. As far as I am aware without looking it up, Revenue do not have discretion to reject this. It is up to you how you wish to be assessed.

    If that does not work come back and PM me and I'll help you any way I can.


  • #3
    Dublin Muppet
    Registered Users, Registered Users 2 Posts: 17 ✭Dublin Muppet


    Separate Assessment can be claimed either verbally or in writing. The claim can be made by either spouse, and must be made in the six months between the 1st of October of the preceding year and the 31st March in the year of the claim. It cannot be backdated and it lasts until withdrawn. Whichever spouse initially makes the claim must also be the one to withdraw it.

    Information above is from IT2 taxation of married couples


  • #4
    Anfield Road
    Registered Users, Registered Users 2 Posts: 33 ✭Anfield Road


    Thanks guys, had a fair idea they could do this was just shocked at the amount they deducted from me. I am going to change our tax credit certs to be separately assessed so that I don't get even more shocks when I go back to work.
    I remembered it happened to a friend of mine who was on JB and then got a new job and their tax credits were reduced.
    All I can do is hope the postman hurries up with my cheque this week, taking ages now!!


  • #5
    Dublin Muppet
    Registered Users, Registered Users 2 Posts: 17 ✭Dublin Muppet


    Think about your options. Not always is separate assessment the best option. I know at the end of the year you can claim your partners unused credits/rateband but in most cases you need the benefit now. So although there might not be much unused credits to avail of now, the extended rateband might be better for you now. So Joint Assessment could b your best option. Get revenue to sort out your credits. Guesstimate ur partners social welfare for the year (hopefully he won't be on it for the year) any unused credits can be transferred to your job. Make sure u are claiming all the credits u are entitled to Flat Rate Exps, Trade union subs, service charges, all are available on www.revenue.ie Hope everything goes well 4 u this year.


  • #6
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    Think about your options. Not always is separate assessment the best option. I know at the end of the year you can claim your partners unused credits/rateband but in most cases you need the benefit now. So although there might not be much unused credits to avail of now, the extended rateband might be better for you now. So Joint Assessment could b your best option. Get revenue to sort out your credits. Guesstimate ur partners social welfare for the year (hopefully he won't be on it for the year) any unused credits can be transferred to your job. Make sure u are claiming all the credits u are entitled to Flat Rate Exps, Trade union subs, service charges, all are available on www.revenue.ie Hope everything goes well 4 u this year.

    As a rough example,

    Personal credit from spouse to be trasnferred - about 2K. No PAYE paid so no PAYE credit, every other credit is against PAYE bar personal credit.

    Dole 200 X 52 += 11,400 at lower rate is about 2,280 in additional tax.

    If seperate assessment his tax liability is nil and hers refund is increased by 2 Grand.

    It's a no brainer which way is the way to go.


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