Tax underpayment

Dacian

Have recently received one of those lovely letters. It appears that I owe Revenue almost E1100 in underpaid.

It seems that when I registered for the RoS in mid 2008 I added health insurance as one of my expenses. Turns out that I do not have an approved health insurance policy and thus on Sep 2 was sent a letter to inform me of this. Apparently this was only discovered within the last 3 weeks. Which is 30 months later, shocking really.

Am gobsmacked at this. I can understand how I made a mistake, I cannot remember any info telling me that my policy wasn't covered by this. Please note this was while trying to claim over E8000 of medical expense and dealing with the connected medical issues.

Have sent my letter off to the local office to ask them to contact me to find a way to deal with this issue. The lady on the revenue locall service was not forthcoming with any advice, put me on hold 4 times.

Is anyone aware of the normal action in such a case. Do I pay a lump sum, installments or lose tax credits for next year?

gerrybbadd

Dacian wrote: »

Have recently received one of those lovely letters. It appears that I owe Revenue almost E1100 in underpaid.

It seems that when I registered for the RoS in mid 2008 I added health insurance as one of my expenses. Turns out that I do not have an approved health insurance policy and thus on Sep 2 was sent a letter to inform me of this. Apparently this was only discovered within the last 3 weeks. Which is 30 months later, shocking really.

Am gobsmacked at this. I can understand how I made a mistake, I cannot remember any info telling me that my policy wasn't covered by this. Please note this was while trying to claim over E8000 of medical expense and dealing with the connected medical issues.

Have sent my letter off to the local office to ask them to contact me to find a way to deal with this issue. The lady on the revenue locall service was not forthcoming with any advice, put me on hold 4 times.

Is anyone aware of the normal action in such a case. Do I pay a lump sum, installments or lose tax credits for next year?

Hi,

You can arrange to have your tax credits reduced over a max. 4 years if you wish, rather than pay a lump sum.

Generally, as far as I'm aware, installment arrangements aren't entertained (could be wrong here!)

nompere

It is usually possible to arrange an instalment arrangement with the Collector General, but rarely over a period of more than two years. His office may well ask for some evidence that you can meet the terms agreed.

If you have a source of tax credits that may be adjusted to collect the underpayment over a period of years that is almost always the best solution.

Dealing with the Collector General almost always involves interest, and he charges much more than your local, friendly bank manager. Agreeing a reduction of tax credits almost never involves interest.

In order of preference you have:

1) Reduction of tax credits

2) Bank loan/overdraft

3) Instalment arrangement

Good luck.