underpaid paye?

forestfruits

Ive received a bill from revenue for close to 1000 euro for what appears to be underpaid paye. Im a paye employee with a rental income, I made about 200 euro profit on the house rental in 2009. As the house is rented through the council I have to get a tax clearance cert each yr so I have to put in a return as if I were fully self employed.

I stupidly did the return myself--- and now comes the bill.

I rang the revenue thinking it must be a mistake and the lady (who couldnt have been more helpful) said it was an underpayment of paye

How is this possible? I assumed my employer just looked after that and I didnt have to worry.

namenotavailablE

You should check if the Revenue demand is correct- for example, does it show all of your tax credits, reliefs, correct cut-off point. Is the rental income on the demand correct?
Then you should check your 2010 P60 to match the same details against the revenue demand. For example, do the income and PAYE deducted values match up?
There may be a simple mistake somewhere, hopefully.

seamus

forestfruits wrote: »

How is this possible? I assumed my employer just looked after that and I didnt have to worry.

Yes and no.

Your employer is supposed to deduct PAYE and PRSI from your pay and send it over to Revenue.

However, if the employer makes a mistake and doesn't deduct the correct amount, then the employee is liable for any shortfall at the end of the year. So to a certain extent there's a responsibility on the employee to review their payslips/P60 and ensure that the employer is deducting tax correctly.

What you should do is use your 2010 payslips and calculate your gross taxable income and the total PAYE paid. Match that up against the figure on your P60 and the figures that Revenue have.

If they all tally, then your employer has underpaid your PAYE and you'll have to cover it. Though revenue are reasonable enough, you should be able to work out a schedule for it.

If the figures don't add up (let's say your taxable income on your P60 is wrong), then you will need to have it fixed.

safetymanager

I recently had to pay almost €4000 to Revenue as they gave my employer the wrong tax credits for me for 2010. It was their mistake and I had to repay it, I am so annoyed. For various reasons I didn't have the option to pay it off gradually or by having my tax credits lowered for a few years so now I'm down all this money in one go and I wasn't even aware that I was underpaying for a whole year!!

Mr. Incognito

Me thinks you put your total rental income in the employment section.

Do up a revised Form 12 with someone that knows what they are at and send that in.