Revenue tax owed but can't pay back

Mikeyshragh

Hi,
Can anyone help me please. I owe nearly €6000 in tax from when I was out on my own. We have sense gone from the business and now I am PAYE. But with all the bills I just can't pay it back at one. Has anyone please got some advise for me. I would like to pay it. Is there a way I could do a payment plan. Any advise would be great full thanks

SK76

Mikeyshragh wrote: »

Hi,
Can anyone help me please. I owe nearly €6000 in tax from when I was out on my own. We have sense gone from the business and now I am PAYE. But with all the bills I just can't pay it back at one. Has anyone please got some advise for me. I would like to pay it. Is there a way I could do a payment plan. Any advise would be great full thanks

You should call in to a revenue office and explain your situation - tell them how much you can pay per month etc and have a plan set out. The liability is not going to go away and interest and penalties will only start accruing if you do not deal with the matter ASAP. If you are upfront and deal with the matter before nasty letters etc start arriving, then they can be fairly approachable. Hope it works out

allthedoyles

As you are now a PAYE employee , you should ask Revenue to reduce your tax credits .

€6,000 over 3 years = €2,000 per annum , and this will equate to a tax credit weekly reduction of €38.

Atlas_IRL

I have the same problem currently. I switched jobs last year and the company paying my wages must not have sent my p45 to revenue as i got taxed heavily for 2 weeks then did not pay tax for around four months or so. I rang the revenue and asked why i was not paying tax but the lady that answered said there everything looked ok. I have now found out via a tax refund company that i owe revenue 1600e in tax from 2012 that i can't really afford to pay back. Does this go away after a couple of years or should i make a payment plan?

Thanks

dbran

It wont go away unfortunately.

If you speak with revenue they will allow it to be collected by reducing your tax credits over 2-3 years. This should make it managable. They may do this automatically.

Always make sure that you have a tax refund due before you approach a tax refund company.

Hope this helps

dbran

Atlas_IRL

Thanks Dbran it does.

stresstest

I am in the same situation and am unemployed and living abroad. Would like to agree a payment plan with revenue if possible but not sure this will be possible.

Shane732

If the assessment has been raised then you should be contacting the Revenue Commissioners in order to discuss a payment plan with them.

The likely outcome in this situation would be a reduction in your tax credits for a number of years.

2ndcoming

If it's an income tax / self assessment liability it can't be collected through the PAYE system of reducing credits, however it can be collected by direct debit installment arrangement.

Contact the Collector General's in Limerick to arrange a payment plan that you can meet.

2ndcoming

That first reply was directed at the OP's query, for the second query the tax refund company should be able to advise you, although they may have lost interest when there's more work involved than helping themselves to 15% of the refund they had hoped you were due!

You should call Revenue and ask to have the bill spread over as long a timescale as possible. 1600 over 3 yrs would be about 10 euro a week off your tax credits. Sucks but better than having to pay it all at once.