P21 question

atilladehun

I read in the Sunday Times this weekend that now is a good time to request P21 form due to changes in tax in 2009. While I wasn't in the country at the time I was thinking it could benefit me too.

I returned to the country in july 2010. I was on the dole for a few weeks and then employed for about 4 months (although in a temporary format and not for every week)

In 2011 this continued and I was out of work for 12 weeks with an injury

In 2012 this continued, then I was unemployed for about 6 weeks and finally I was on a long term contract, paid monthly.

Throughout my time I've done extra work and over time, which has often been taxed quite highly.

This year I will transfer onto a permanent full time contract but continue the overtime and extra work.

Is there anything I need to know? I had a look on the revenue site and citizens information but I'm not fully clear on how it works. Can I only apply for a year that has ended or will this year so far be included? I suppose I don't mind if I owe money, I wouldn't like it to build up anyway.

Has anyone done it recently? Any advice?

gerbilgranny

A P21 is a PAYE Balancing Statement of your pay and tax in any given year.

Most people, if in continuous employment probably pay the correct tax, but if one is in and out of jobs it's more likely that you have either OVERpaid - or UNDERpaid tax. An underpayment can arise if you were in receipt of Taxable Social Welfare Income (Jobseekers' Benefit, Illness Benefit, etc) and didn't inform Revenue at the time.

Such cases usually come to light via some list sent to Revenue by DSP, but it's worth bearing in mind that if someone requests a P21, the result can mean a tax bill - although underpayments are more usually collected by reducing tax credits for future years.

The reason 2009 is relevant is that you can get your taxes reviewed for 4 years - so if you want to check if 2009 was correct, or if you want to claim for additional reliefs (Health Expenses, Tuition Fees etc), for 2009, you must request the review before 31 December 2013.

You can register for PAYE anytime and request a P21, or contact your tax office and ask for one - or 4 - if you want 2009, 2010, 2011 and 2012 reviewed. Provided all the details of your various pay and tax from each employment is on record, the review can be done. Sometimes you may have to forward P60s if the pay and tax details for a recent year aren't showing on Revenue screens.

People who apply for grants are required to submit P21s as proof of income.

Obviously a balancing statement for a year can only be done after the end of the year, so if you want 2013 reviewed, you should apply after 31 December 2013, and submit your P60(s) as it takes a few months for details returned by employers to be visible to the people in the PAYE Sections.

On www.revenue.ie you can read about tax credits and employment, which will help explain how your weekly/monthly pay is taxed.

atilladehun

cheers!