PAYE underpayment threshold

blackrock

Hi
I have a question relating to tax underpayment.

Each Year I get a P21 balancing statement from revenue. Some years it shows an underpayment - say 360euro and states "This underpayment will not be collected at this time".

One year the underpayment was 560euro and they collected the underpayment by adjusting my allowances for the following years.

My question is - does anyone know what the underpayment treshold is that triggers the collection? From my records 360 is not collected while 560 is. So the treshold is between these two.

Thanks
BR

relax carry on

blackrock wrote: »

Hi
I have a question relating to tax underpayment.

Each Year I get a P21 balancing statement from revenue. Some years it shows an underpayment - say 360euro and states "This underpayment will not be collected at this time".

One year the underpayment was 560euro and they collected the underpayment by adjusting my allowances for the following years.

My question is - does anyone know what the underpayment treshold is that triggers the collection? From my records 360 is not collected while 560 is. So the treshold is between these two.

Thanks
BR

It was €400. The threshold has lowered as of 2010, it might even lower further in the future. Also underpayments under the thresholds do not disappear, future repayments are supposed to be automatically offset against those underpayments.

blackrock

... for your response.
BR

BohsCeltic

I have a quick question on this aswell. I am on JSB at the moment and done my P21 balancing statement in January 2012 and i had overpayed and that was refunded.
This month, I needed a copy of my P45 but revenue just issued a new P21 and that showed an underpayment and it said to forward a cheque onto their offices. The amount was €300.
How can that be ?

relax carry on

BohsCeltic wrote: »

I have a quick question on this aswell. I am on JSB at the moment and done my P21 balancing statement in January 2012 and i had overpayed and that was refunded.
This month, I needed a copy of my P45 but revenue just issued a new P21 and that showed an underpayment and it said to forward a cheque onto their offices. The amount was €300.
How can that be ?

Difficult to tell here. Compare both of the P21s to see what is different. If you can't tell from the P21s, then contact your local PAYE area via email asking for an explanation.

barneystinson

BohsCeltic wrote: »

I have a quick question on this aswell. I am on JSB at the moment and done my P21 balancing statement in January 2012 and i had overpayed and that was refunded.
This month, I needed a copy of my P45 but revenue just issued a new P21 and that showed an underpayment and it said to forward a cheque onto their offices. The amount was €300.
How can that be ?

The previous poster said that it was 400 up to 2010 and has been lowered since, so maybe it's now 300 or less.

Anyway, if you're asking how you could have underpaid, after having gotten a refund on your original P21, it's probably either you didn't enter the correct pay and tax figures for your employment income, or you didn't include your JSB as taxable income.

You should be able to compare the two P21's and see where the difference arises.

Joe222

This is the downside of JSB. Let's say you didn't work for June to August last year and claimed JSB during that period. Then you got back to work and tax was more than likely refunded to you owing to tax credits for the period you were unemployed. However the revenue system doesn't take the JSB payments into account until the end of the year. JSB is taxable. It has caught me out on a few occasions. That is why you have to repay tax as I bet you were refunded tax during the year. Check your payslips.
I just wish JSB was entered into the revenue system as you get it as that way your tax payments would always be upto date.

relax carry on

Joe222 wrote: »

This is the downside of JSB. Let's say you didn't work for June to August last year and claimed JSB during that period. Then you got back to work and tax was more than likely refunded to you owing to tax credits for the period you were unemployed. However the revenue system doesn't take the JSB payments into account until the end of the year. JSB is taxable. It has caught me out on a few occasions. That is why you have to repay tax as I bet you were refunded tax during the year. Check your payslips.
I just wish JSB was entered into the revenue system as you get it as that way your tax payments would always be upto date.

Details of jobseekers/illness benefit are sent to Revenue weekly. They are not updated in Revenues systems automatically; you need to ask for that. So in your example above all you needed to do was contact Revenue the day you started back to work and ask for the amounts of Jobseekers to be updated. Your tax credits and rate band would have been automatically reduced to account for this and a new cert issued to your employer.
Again Revenue do not automatically update DSP payments at the end of the tax year, you need to ask for it to be done.
Each taxpayer is ultimately responsible for their own tax affairs.

BohsCeltic

barneystinson wrote: »

The previous poster said that it was 400 up to 2010 and has been lowered since, so maybe it's now 300 or less.

Anyway, if you're asking how you could have underpaid, after having gotten a refund on your original P21, it's probably either you didn't enter the correct pay and tax figures for your employment income, or you didn't include your JSB as taxable income.

You should be able to compare the two P21's and see where the difference arises.

I found out the underpayment was due to them not receiving my JSB payments from welfare.
Half the money is being taken out of my pay this month then a portion every other month.
They are quick off the mark when you owe them money :mad:

nunn351

Well I saw a P21 few days ago and the underpayment is €126 ( due to SW )

This is what Revenue said quote :

Collected by reducing your credits in future years €126 2013

All refunds will be automatically offset against this underpayment until it is fully collected .

So I wonder are they after reducing the underpayment threshold