DSP Illness Benefit - got 400 tax taken off me

thekooman

Hi all,
Was off work for 4 weeks during the summer and work paid my wages as normal. I was also getting some kind of receipt from the Revenue saying they were part paying sick pay... I didn't pay any heed to it as I wasn't getting any cash from them! :rolleyes:

anyways, I got a Tax Credit update stating that my Tax Rate Band had dropped from 32800 to 31750 with "DSP Illness Benefit" been 1050.

lo and behold, I get my wages last week and I am down 400 euro in tax... not a clue what is going on and Payroll have said talk to Revenue.
Should this have happened? paying tax on something I didn't get.

I am useless with tax and revenue so any help would be great.

relax carry on

thekooman wrote: »

Hi all,
Was off work for 4 weeks during the summer and work paid my wages as normal. I was also getting some kind of receipt from the Revenue saying they were part paying sick pay... I didn't pay any heed to it as I wasn't getting any cash from them! :rolleyes:

anyways, I got a Tax Credit update stating that my Tax Rate Band had dropped from 32800 to 31750 with "DSP Illness Benefit" been 1050.

lo and behold, I get my wages last week and I am down 400 euro in tax... not a clue what is going on and Payroll have said talk to Revenue.
Should this have happened? paying tax on something I didn't get.

I am useless with tax and revenue so any help would be great.

Not sure what receipt from Revenue you are referring to. Revenue do not issue illness benefit, the DSP do.

Illness benefit is a taxable source of income so it has to be taxed at source through your payroll.

Check with your employer that this is what they did. If it was already taxed at source, then get back on to Revenue to advise them of this and get your credits and rate band reinstated.

The link below gives further information

http://www.revenue.ie/en/business/paye/guide/illness-benefit.html

thekooman

relax carry on wrote: »

Not sure what receipt from Revenue you are referring to. Revenue do not issue illness benefit, the DSP do.

Illness benefit is a taxable source of income so it has to be taxed at source through your payroll.

Check with your employer that this is what they did. If it was already taxed at source, then get back on to Revenue to advise them of this and get your credits and rate band reinstated.

The link below gives further information

http://www.revenue.ie/en/business/paye/guide/illness-benefit.html

many thanks carry on
i'll get on to them today... think its a mistake anyways.

Shane732

Moved to state benefits.