Underpayment of tax by PAYE employees in 2011

LETHAL LADY

Considering the revenue usually issue tax credit certs in October, November of 2010 without budget adjustments will it be the case that come mabye the middle of February 2011 that most PAYE employees will have a massive repayment of tax due to the Revenue Commisioners. The reason I ask this is because when I worked in payroll we would only apply new tax credits once we recieved official certs from Revenue usually in February and I have only been working in payroll since credits were increasing. Can anyone tell me if I am right because at the moment I am unemployed but my husband is working and Im worried about the effect on our income come February.

seamus

LETHAL LADY wrote: »

Can anyone tell me if I am right because at the moment I am unemployed but my husband is working and Im worried about the effect on our income come February.

Tax credit certs are usually issued by the end of January in the financial year, not October or November.

What companies will generally do (or should generally do) is run payroll on a week 1 basis (which means that you will get the standard Tax Credits + PAYE Credits) until they receive the updated tax credits certificate.

This means that employees will usually pay too much tax in the first month or two, which will then be refunded in subsequent payrolls.

If you think that your husband's employer is going to underpay his PAYE in January, then simply budget to carry that amount over into February to offset the adjustment.

Steveirl2010

seamus wrote: »

Tax credit certs are usually issued by the end of January in the financial year, not October or November.

What companies will generally do (or should generally do) is run payroll on a week 1 basis (which means that you will get the standard Tax Credits + PAYE Credits) until they receive the updated tax credits certificate.

This means that employees will usually pay too much tax in the first month or two, which will then be refunded in subsequent payrolls.

If you think that your husband's employer is going to underpay his PAYE in January, then simply budget to carry that amount over into February to offset the adjustment.

I am a bit lost, i logged into PAYE Anytime on www.revenue.ie
i have a login and pin number.
I went to 2011 and there was an email with a PDF from the 17/12/2010 called Tax Credit Certificate

I opened it up and it said "Tax Credit Certificate - 2011
It gives me my Personal Tax Credit
PAYE Tax Credit
Medical Insurance Relief
Gross Tax Credits
Net Tax Credits

Is this what im allowed claim back in 2011 ?
Medical Insurance Relief is only 166.20

then goes onto tell me the new taxable rates from the budget that i'll be taxed 20% up to 32,800 and 41% on anything above this.

This is clear but im very confused on the tax credits above ?
can anyone help me out here or explain it better?

Id love to do a course on all of this so i could understand it all.
I feel like you have to work in Revenue to understand your entitlements

Thanks
Steve

HarvestAnne

I'm afraid the news is not good in respect of tax certificate. The Budget brought about a reduction in Standard Rate Cut Off Points and tax credits of approximately 10%. Chances are that your employer has already accessed your tax certificate on ROS, but you should contact Revenue and ask them to send you a new certificate.
If you were previously working but are now unemployed, it would be a good idea to ask Revenue to allocate your tax credits to your husband and ensure that he is getting the Married Person (one spouse working) standard rate cut off point.
If you go back to work, then ask them to allocate some back to you again. This way, you'll get the maximum benefit without waitiing for a recalc of your taxes after year end.

HarvestAnne

HI Seamus,
You should really contact your local Revenue office and discuss your personal circumstances with them! Your Medical COntribution tax relief is usually given at source by the provider (e.g. VHI, BUPA etc) but if your employer is paying that on your behalf then it is a Benefit In Kind and you are entitled to claim the tax credit as your have been taxed on the gross cost of the insurance contributions paid by your employer.
Your tax credits are very much based on your personal circumstances and it's amazing how many people do not claim all they are entitled to e.g. Medical expenses, rent relief, Schedule E expenses - based on your occupation, age tax credit and so on.