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Unexpected PAYE bill, any advice?

  • 26-08-2013 6:27pm
    #1
    boogle
    Registered Users, Registered Users 2 Posts: 777 ✭✭✭


    Hi all, hoping you might advise me on my situation.
    This summer my husband and I received a P21 for 2012 stating an underpayment of around 6000. I rang, and was told that that was wrong and it was actually 4300. I wrote to Revenue as I could not fathom where this could come from. Apparently my husband's employer hadn't gotten a tax credits cert for him from Revenue, and they didn't put him on emergency tax so I suppose they didn't deduct the correct amount of PAYE. Apparently they also used a tax band they weren't supposed to. Now I have a bill of 4300 and I'm not sure what to do about it. We don't have that kind of money lying around, and I've just been put back to part-time in my job.

    To add to it all, we got a P21 for 2011 two weeks ago. It stated an underpayment of around 1000. Explanation for that one was that my husband was unemployed for a few months that year and Revenue didn't receive notification of that income until recently, and since jobseeker's benefit is taxable, we owe on that too.

    So basically a couple of cock ups have left us with a totally unmanageable bill. Can anyone advise me on what I can do? I'm totally stressed out by this!


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,686 ✭✭✭barneystinson


    boogle wrote: »
    Hi all, hoping you might advise me on my situation.
    This summer my husband and I received a P21 for 2012 stating an underpayment of around 6000. I rang, and was told that that was wrong and it was actually 4300. I wrote to Revenue as I could not fathom where this could come from. Apparently my husband's employer hadn't gotten a tax credits cert for him from Revenue, and they didn't put him on emergency tax so I suppose they didn't deduct the correct amount of PAYE. Apparently they also used a tax band they weren't supposed to. Now I have a bill of 4300 and I'm not sure what to do about it. We don't have that kind of money lying around, and I've just been put back to part-time in my job.

    To add to it all, we got a P21 for 2011 two weeks ago. It stated an underpayment of around 1000. Explanation for that one was that my husband was unemployed for a few months that year and Revenue didn't receive notification of that income until recently, and since jobseeker's benefit is taxable, we owe on that too.

    So basically a couple of cock ups have left us with a totally unmanageable bill. Can anyone advise me on what I can do? I'm totally stressed out by this!

    First you need to make sure that what you're being told by Revenue is correct, and make sure that the tax credits / rate bands are being correctly operated for the current year (otherwise you face more bad news early next year).

    Assuming it is, you need to make sure you've claimed every credit/deduction you're entitled to going back the last 4 years.

    Once you've done that, you need to agree with Revenue how to deal with the outstanding balance underpaid. You should be able to get them to reduce the tax credits over the next 2-3 years in order to collect the underpayment.


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