Tax Office made mistake?

jimhun

Hi all,

I applied for Tax Refund 2010 a month ago.
Today, I have just got my P21 and do not get any money back, because it shows I do not have PAYE Tax Credit.
It is correct I dont have Tax credit for 2011 because I m unemployed from 1st jan 2011.
BUT last year I was working and I had PAYE Tax Credit showing on my Certificates (~1800E).
I think they should have counted the amount of my tax refund based on my Tax Credit of 2010 not of 2011. (Beacause I applied for Tax year 2010)

Am I correct?

Anybody has the same problem or can help?

Thank you
Kelly

MBateson

Phone them and ask them to correct, there's a lo call number on their website

MagicSean

Exact same thing happened to me this morning. P21 for last 3 years showed me owing 3,600. Didnt get PAYE credits for 2008 and 2009. You can claim them back on anytime and request a new balancing statement.

jimhun

Thanks guys,

So it looks, it was their fault and I m right. As I know If I had PAYE Tax credit in 2010, I can claim back it, does not matter if I have or do not have it in this(2011) year.

allthedoyles

If your total earnings for 2010 are less than say € 9,150 , you will not be allocated a PAYE Tax Credit .

In this instance your Personal Tax Credit is enough to cover your earnings .

In a joint assessment where spouses earnings are less than the total of both Personal and PAYE tax credit , it is always the paye credit that is reduced accordingly .

jimhun

allthedoyles wrote: »

If your total earnings for 2010 are less than say € 9,150 , you will not be allocated a PAYE Tax Credit .

In this instance your Personal Tax Credit is enough to cover your earnings .

In a joint assessment where spouses earnings are less than the total of both Personal and PAYE tax credit , it is always the paye credit that is reduced accordingly .

Our (me and my wife) total imcome was 40 577E.
We paid 1536 E tax.
Our full tax is: 8115E

Our total of both Personal and PAYE tax credit ( including rent tax credit and medical credit) is 8189E
I think we shuold get back about 1500E. But we get only 82E because they removed my full PAYE tax credit.

Maybe it is right?

allthedoyles

If you and your wife are both paye workers , and had earnings for 2010 , ye will both be entitled to paye tax credit .

For both of you to claim full paye tax credit your P60 figure needs to be in excess of € 18,300.

jimhun

allthedoyles wrote: »

If you and your wife are both paye workers , and had earnings for 2010 , ye will both be entitled to paye tax credit .

For both of you to claim full paye tax credit your P60 figure needs to be in excess of € 18,300.

Thanks

My income was 9600 and my wife income was 31000.
What is the situation in this case?

Thanks a lot

allthedoyles

jimhun wrote: »

Thanks

My income was 9600 and my wife income was 31000.
What is the situation in this case?

Thanks a lot

In this case you only receive a paye tax credit of € 90 - the rest is unused .

From the info so far , I believe you are correctly assessed with a tax liability of €1450 and refund of € 82

jimhun

allthedoyles wrote: »

In this case you only receive a paye tax credit of € 90 - the rest is unused .

From the info so far , I believe you are correctly assessed with a tax liability of €1450 and refund of € 82

Thanks

Hope you are not right.
I checked some calculator as well and all said I should get 1532E back. Also checked all Tax Cert from last years, and all contain 1830 E PAYE tax Cred for me.
Anyway tomorrow I will go to the office to check this with them .

If I do not get back anything, I will ask Taxback.com to check this for me. (They made an estimation said I should get back 1532E)

Thanks

barneystinson

allthedoyles wrote: »

In this case you only receive a paye tax credit of € 90 - the rest is unused .

From the info so far , I believe you are correctly assessed with a tax liability of €1450 and refund of € 82

That's not right, the PAYE credit applies to all PAYE income, it doesn't just kick in after the personal credit is used up. In joint assessment cases, the marriage credit is fully transferrable between spouses, by default it is usually split 50/50 between them at day 1 until they request otherwise.

The logical conclusion of what you're saying would be a huge inequity against low earning / part-time married PAYE workers, as they wouldn't be able to gain any benefit from transferring their half of the marriage credit to the higher earning spouse...

barneystinson

jimhun wrote: »

Thanks

Hope you are not right.
I checked some calculator as well and all said I should get 1532E back. Also checked all Tax Cert from last years, and all contain 1830 E PAYE tax Cred for me.
Anyway tomorrow I will go to the office to check this with them .

If I do not get back anything, I will ask Taxback.com to check this for me. (They made an estimation said I should get back 1532E)

Thanks

OP, the calculators etc. are all correct (assuming the figures as you posted them above are correct), and this will be very quickly resolved when you phone / call into the tax office.

allthedoyles

allthedoyles wrote: »

If your total earnings for 2010 are less than say € 9,150 , you will not be allocated a PAYE Tax Credit .

In this instance your Personal Tax Credit is enough to cover your earnings .

In a joint assessment where spouses earnings are less than the total of both Personal and PAYE tax credit , it is always the paye credit that is reduced accordingly .

I stand by what I said , but would love to be proven wrong .

Jim, will you let us know your answer from tax office ?

http://www.revenue.ie/en/tax/it/credits/paye-employee-credit.html

This is the important piece from Revenue website :

Note - The PAYE Tax Credit cannot exceed the individual's PAYE income at the Standard Rate. Any restriction which may arise, will be calculated on review at the end of the year

barneystinson

allthedoyles wrote: »

I stand by what I said , but would love to be proven wrong .

Jim, will you let us know your answer from tax office ?

http://www.revenue.ie/en/tax/it/credits/paye-employee-credit.html

This is the important piece from Revenue website :

Note - The PAYE Tax Credit cannot exceed the individual's PAYE income at the Standard Rate. Any restriction which may arise, will be calculated on review at the end of the year

Exactly - the OP's PAYE income is 9,600 per his post - the max PAYE credit is 1,830, which requires 9,150 of PAYE income; you've just proven yourself wrong?!

namenotavailablE

I'm with Barney on this- the PAYE credit is fully used up and the rest can be transferred.
There appears to have been a mistake in the tax office.

owiseone

Are you a proprietry director of the company you worked for in 2010? if you were you wouldn't be entitled to paye credit if your share is more than 15%. If you're NOT a director you are entitled to paye credit and you should give them a ring, they'll fix it up over the phone.

jimhun

Hi,

Thanks the help for everybody!
I was in the office today and they fixed it and will sent a new P21 Balacing Statement in 1-2 weeks. I will inform you then if I get or do not get anything back.

Thanks again
jimhun

jimhun

Hi all,

The problem was solved. I was in the office about 2 weeks ago , talked with a guy who sent a letter to the inspectors with my problem.
1 week ago they sent back the same amount of money what I expected first time.

Thanks for the help

allthedoyles

delighted to hear you have been sorted .