P21 shocker...

The lips

Ordered P21 online a month ago. Turns out I underpaid tax by 2949euro in 2008.
P21 Reads;

In accordance with the provisions of Section 997(3) TCA 1997, this
statement is to be treated as a Notice of Assessment. If you wish to appeal
any item not in accordance with your return, you must specify the matter in
dispute and the grounds for the appeal, within 30 days of this notice.
Please forward a cheque in settlement for €2949.07

I also underpaid 464euro in 2009. Turns out my tax credits will be deducted by that much in 2013.

What happens next? I don't have that kind of money.
:mad::eek::mad:

Mr. Incognito

Firstly,

see what triggered the underpayment.

Secondly,

Go back and claim any credits that were unclaimed for those years, rent credit, medical expenses, service charges, etc. This should reduce any liability.

Thirdly, you can arrange to have your credits reduced in future years rather than paying the lump sum.

A good tax advisor should be able to reduce the amount owed significantly.

The lips

I already have all my credits claimed. I changed jobs and the new employer slipped up. I never looked at any of this stuff before now.

Shane732

Bet you're regretting ordering a P21 now!

Unfortunately there's very little that can be done if you have claimed all your credits etc...

Your best bet is to ask to have the amount due paid by reducing your tax credits for the next 4 years.

The lips

Yeah, kicking myself.
Prob would have surfaced at some time anyway.

I wrote to them and waiting a reply.

Shane732 wrote: »

Bet you're regretting ordering a P21 now!

Unfortunately there's very little that can be done if you have claimed all your credits etc...

Your best bet is to ask to have the amount due paid by reducing your tax credits for the next 4 years.

seamus

Happened to a colleague of mine too, she was accidentally given double tax credits by the employer.

Unfortunately not a whole lot you can do except to ask for the reduction to be spread over a longer term as Shane points out.

While the PAYE system requires the employer to deduct tax at the source, to the best of my knowledge it is the employee's responsibility to ensure that the tax is being deducted correctly.

Shane732

Hate to tell that the likelihood of it surfacing would actually have been extremely low if you have no other income other than your PAYE income.

I'd always use a couple of the online calculators to give yourself an idea of whether you've under or over paid prior to requesting a balancing statement.

The online calculators can't be relied upon but they give you an indication.