tax underpayment

amy85

hi there.this is a long story so im gonna cut it real short cause i know these questions have been asked loads of times already. i dont even know how to start writing this cause i know im going to look like a pure thicko,but i am totally clueless when it comes to tax and everything that goes with it. but in 2008 i was applying for tax back on rent . instead of putting the landlord as resident,i put him down as non resident by mistake,thus giving myself an underpayment of nearly 600 euro. when my balancing statement came in post i was terrified because i didnt understand how i could owe them all this money. it said it wouldnt be collected this time,so i said nothing and kinda forgot about it(hoping it would somehow magically sort itself out!.) fast forward to start of this year,i told my mum about it,she nearly went mad,told me go straight to the revenue office so i did. told the lady the story,she looked at me like i was a pure eejit(which i am) but said she would sort it. i asked her what i had to do,could i just pay the rest of it off to clear it,she said off course not,why would you pay for something that you clearly made mistake on and dont really owe.so she amended it on the system,wrote a note on my file explaining the story. last week i applied for a tax refund on my medical expenses for 2010,got balancing statement saying over payment of 55euro,finial result 'offset against paye 2008'. so i went into revenue again this morning,a different lady told me that i had to pay of the rest of the underpayment,that it would just be deducted from my tax credits every week . im so confused,i thought it was sorted and now it looks like il just have to keep paying it off. its now down to 444euro,the underpayment. sorry i know this was really long winded. if anyone could shed some light on this i would be greatful. thanks! amy

Mr. Incognito

That made my eyes bleed- try using paragraphs and the return button.

What has happened is that if the landlord is non registered 20% withholding tax of the rent is applied.

What that means is that you are supposed to underpay your rent by 20% and hand the difference over to the Revenue. The person renting is assessed on this as they are in the country and the landlord is not. This requirement is waived if the landlord provides the name of a resident agent to assess.

The Revenue system is automated so it automatically has applied this with holding tax. The first Revenue official you spoke to was competent and understood this and tried to reverse it.

The second lady was not. This is common amongst low level Revenue officials who are not qualified in tax at all but are general civil servants that haven't a bulls outside their own specific area ( unless Inspectors and above)

You need to go back to the Revenue and have it adjusted correctly. A registered letter outlining the history of events sent via registered post should do it as a phone call could see you speaking to someone who knows less than you do.

amy85

thanks for that. should i just send a letter into my local revenue office detailing eveything is it? i really dont fancy going into them again incase i get the same lady and dont get anywhere with her again. its really frustrating and time consuming!

allthedoyles

amy85 wrote: »

hi there.
this is a long story so im gonna cut it real short cause i know these questions have been asked loads of times already.
i dont even know how to start writing this cause i know im going to look like a pure thicko,but i am totally clueless when it comes to tax and everything that goes with it.
but in 2008 i was applying for tax back on rent .
instead of putting the landlord as resident,i put him down as non resident by mistake,thus giving myself an underpayment of nearly 600 euro.
when my balancing statement came in post i was terrified because i didnt understand how i could owe them all this money.
it said it wouldnt be collected this time,

so i said nothing and kinda forgot about it(hoping it would somehow magically sort itself out!.)
fast forward to start of this year,i told my mum about it,she nearly went mad,
told me go straight to the revenue office so i did.
told the lady the story,she looked at me like i was a pure eejit(which i am) but said she would sort it.
i asked her what i had to do,could i just pay the rest of it off to clear it,
she said off course not,
why would you pay for something that you clearly made mistake on and dont really owe.
so she amended it on the system,wrote a note on my file explaining the story.
last week i applied for a tax refund on my medical expenses for 2010,got balancing statement saying over payment of 55euro,finial result 'offset against paye 2008'.
so i went into revenue again this morning,
a different lady told me that i had to pay of the rest of the underpayment,that it would just be deducted from my tax credits every week .
im so confused,i thought it was sorted and now it looks like il just have to keep paying it off.
its now down to 444euro,the underpayment.
sorry i know this was really long winded.
if anyone could shed some light on this i would be greatful. thanks! amy

I have used the return button for you above .

You should re-apply for a balancing statement for 2008 .
Fill in a new rent tax credit form and fill it in properly this time .

Attach short note to ask them to issue another P21 for 2008 based on the attached information.

This will reverse the previous assessment .