query on tax relief at source

bernieobr

Hi, can anyone tell me why my trs reduced this month. I just noticed my mortgage payment had increased by 8.24 euros this month and when i rang the bank to ask what was the extra 8.24 for they said it was cos my trs had been reduced. I was not informed by revenue that this was going to happen and my circumstances havent changed in any way so why, out of the blue would this happen. thanks

coylemj

I doubt if anyone here can answer the question because there are umpteen reasons why it can happen mid year, the main reason would be that you were moved from the top rate to the standard rate of income tax. Did you get a new statement of tax credits from the tax office recently?

Your best bet would be to contact your local PAYE office and ask them though they may not discuss personal financial details over the phone, you may have to bring some correspondence from them containing your PPS number to the local tax office and discuss it with them.

bernieobr

Thanks Coylem for the reply. It couldnt have anything to do with what you suggest as myself and hubby are both unemployed but back at college. I'll ring the revenue office myself tomorrow (a task I hate doing) but I appreciate you taking the time to reply.

coylemj

If you were both working up to now then perhaps you were paying tax at the top rate. Now that you have stopped working, the taxman probably reckons that at the end of the year you will only be liable to pay tax at the standard rate when the income you earned in the partial year is averaged out over 12 months.

This means that you will probably be entitled to claim a refund of tax paid at the end of the year i.e. in Jan. 2013 but it also means that your monthly mortgage relief is reduced from 41% to 21% and this will be reflected in a reduction in the TRS.

rameire

its nothing to do with paye or prsi.

ring 1890 46 36 26

it is probably due to the fact that the bank has recalculated how much interest you are due to pay on your mortgage this year, and it is coming out at less interest then they calculated at the start of the year, thus they will have to reduce the trs they pay to you, as trs is based on how much interest you are charged.

unless you are with pTSB, if so check out askaboutmoney.com and the trs problems had with ptsb customers

bernieobr

Hi Coylemj and Rameire. Thanks for your replies. Both of us have been back in college for the last 3 years - thats why I say our circumstances havent changed at all and cant figure why the trs would change all of a sudden without notification. Perhaps as you say Rameire, it is the bank doing it themselves but that is not what they told me today when I queried it - they said they had received notice of this from the revenue. I will just have to ring revenue myself and query it. I will update this thread with any news I have. Once again, I appreciate ye taking the time to reply.