P21 Balancing Statement Query

outsourced_ire

Hi all,

I arrived home today to two letters from the revenue. They were P21 Balancing statements from 2011 and 2010.

For both years it says I have overpaid in tax and I am due money back, which will be issued to me by cheque. This was a nice surprise

My query is - on 13th of November I posted several forms to back claim on Rent Relief. These P21 statements are dated 15th of November. Is the turnaround that quick does anybody know?

Also, if the refund is in fact due to rent relief, would this be stated in the tax credits panel overleaf? Currently, it just says Personal Tax Cr, PAYE Tax Credit, and Health Expenses.

I shouldn't question it really but I just want to figure out exactly what this is for.

Any advice appreciated

Bold Abdu

It doesn't include your rent relief claim. Assuming your claim was valid another P21 will issue.

outsourced_ire wrote: »

Hi all,

I arrived home today to two letters from the revenue. They were P21 Balancing statements from 2011 and 2010.

For both years it says I have overpaid in tax and I am due money back, which will be issued to me by cheque. This was a nice surprise

My query is - on 13th of November I posted several forms to back claim on Rent Relief. These P21 statements are dated 15th of November. Is the turnaround that quick does anybody know?

Also, if the refund is in fact due to rent relief, would this be stated in the tax credits panel overleaf? Currently, it just says Personal Tax Cr, PAYE Tax Credit, and Health Expenses.

I shouldn't question it really but I just want to figure out exactly what this is for.

Any advice appreciated

outsourced_ire

Bold Abdu wrote: »

It doesn't include your rent relief claim. Assuming your claim was valid another P21 will issue.

Thanks for the quick response Bold Abdu! Would it be usual that a refund would be issued without a claim for it?

E.V

Hi there,

I have a query - when i requested to amend my rent tax credit from marriage to single in 2014, I thought it is only done for current year.

But then I received a P21 balance statement for 2011 and ask me to pay over 1,500 euro. I dont know what is happening and anyway I can appeal?

Please help!

angeldelight

E.V wrote: »

Hi there,

I have a query - when i requested to amend my rent tax credit from marriage to single in 2014, I thought it is only done for current year.

But then I received a P21 balance statement for 2011 and ask me to pay over 1,500 euro. I dont know what is happening and anyway I can appeal?

Please help!

Ring them?

E.V

angeldelight wrote: »

Ring them?

I already rang them. I think there is no other way but to pay the balance :,(

barneystinson

E.V wrote: »

I already rang them. I think there is no other way but to pay the balance :,(

Well is the balancing statement right or wrong for the earlier year? Why is there an underpayment? Have you claimed everything you're entitled to in terms of tax credits for the last 4 years?

Generally in a situation giving rise to an underpayment like this, it can be collected by reducing your tax credits over the next couple of years, so you pay that much more tax in those years.

outsourced_ire

Just to update the thread from the original post, and following on from E.V's situation, my refund was actually issued in error. Well. The majority of it anyway. When they realised I was told I either had to give the money back (it was spent!) or pay more tax for the next 2/3 years.

I understand it wasn't mine to begin with but surely these are mistakes that should not be made.

E.V

Thanks Outsourced Ire. I have contacted the revenue to allocate amount to my tax credit so I will hav to pay more tax over next 12 mths which I am not keen.
Nothing I can do really....

Vesper

Hi, just wondering where on the P21 statement does it say if I have overpaid tax/due tax back? Gracias amigos

relax carry on

Vesper wrote: »

Hi, just wondering where on the P21 statement does it say if I have overpaid tax/due tax back? Gracias amigos

Page 1 at the bottom. Should be called treatment of result

sean72

Hi

I just got balancing statements for the past 4 years for my wife and I. We are both PAYE earners in large public bodies. However one year I underpaid by 500 euro.

I can't make head nor tail of the form but am just wondering why/how we could have underpaid when all the transactions go through large finance office and there have been no deviation in tax credits.

Would it be worth while looking in to this further. I am almost scared that they will take more if I do. Could I check this via my on finance office to see why this occurred??

Thanks

CIARAN_BOYLE

sean72 wrote: »

Hi

I just got balancing statements for the past 4 years for my wife and I. We are both PAYE earners in large public bodies. However one year I underpaid by 500 euro.

I can't make head nor tail of the form but am just wondering why/how we could have underpaid when all the transactions go through large finance office and there have been no deviation in tax credits.

Would it be worth while looking in to this further. I am almost scared that they will take more if I do. Could I check this via my on finance office to see why this occurred??

Thanks

If you look more into it all you will get is an explanation of why the change happened. You will probably still owe money.

That said if you send me your p60s and p21 (blackout of name and other personal details) for the year in question and either prior year or the year afterI am fairly sure I would be able to give a good stab at why it occurred for your.

AndrewJRenko

sean72 wrote: »

Hi

I just got balancing statements for the past 4 years for my wife and I. We are both PAYE earners in large public bodies. However one year I underpaid by 500 euro.

I can't make head nor tail of the form but am just wondering why/how we could have underpaid when all the transactions go through large finance office and there have been no deviation in tax credits.

Would it be worth while looking in to this further. I am almost scared that they will take more if I do. Could I check this via my on finance office to see why this occurred??

I'm in a similar situation. All my income is PAYE through a public body. The missus has <5k income from a part time job, all paid through proper channels with proper payslips from their accountant.

I contacted Revenue to make sure we were getting the Home Carers Credit recently, and got a balancing statement showing a €1100 underpayment for 2015. I rang up for an explanation, and they said they would send it back to the District Office with a request for more information, and I'd get a response in a few days. I'm still waiting.

What kind of scenario could lead to this kind of under-payment on pure PAYE income?

CIARAN_BOYLE

AndrewJRenko wrote: »

I'm in a similar situation. All my income is PAYE through a public body. The missus has <5k income from a part time job, all paid through proper channels with proper payslips from their accountant.

I contacted Revenue to make sure we were getting the Home Carers Credit recently, and got a balancing statement showing a €1100 underpayment for 2015. I rang up for an explanation, and they said they would send it back to the District Office with a request for more information, and I'd get a response in a few days. I'm still waiting.

What kind of scenario could lead to this kind of under-payment on pure PAYE income?

That your payroll people messed up and gave you too much money. Post your p60s and your p21 (with personal information blacked out and I can I have a look and tell you what exactly the mistake was.

AndrewJRenko

CIARAN_BOYLE wrote: »

That your payroll people messed up and gave you too much money. Post your p60s and your p21 (with personal information blacked out and I can I have a look and tell you what exactly the mistake was.

Thanks for this generous offer, I'll dig out the figures next week.

I don't have any other explanation beyond yours that 'payroll people messed up' - but yet, given that these are the same people that are paying tens of thousands of civil and public servants, it just seems a bit unlikely - not impossible, but unlikely. If there was a problem here, you'd expect that it would have effected more people than me, and that there would be more of an outcry.

barneystinson

AndrewJRenko wrote: »

Thanks for this generous offer, I'll dig out the figures next week.

I don't have any other explanation beyond yours that 'payroll people messed up' - but yet, given that these are the same people that are paying tens of thousands of civil and public servants, it just seems a bit unlikely - not impossible, but unlikely. If there was a problem here, you'd expect that it would have effected more people than me, and that there would be more of an outcry.

If you claim home carers tax credit then you cannot also claim an increased standard rate band.

What has probably happened is that you had both the home carers tax credit AND the increased standard rate band.

When issuing a balancing statement, this will have come to light, and whichever is most beneficial applied, and in your case that appears to be the withdrawal of the tax credit.

CIARAN_BOYLE

AndrewJRenko wrote: »

Thanks for this generous offer, I'll dig out the figures next week.

I don't have any other explanation beyond yours that 'payroll people messed up' - but yet, given that these are the same people that are paying tens of thousands of civil and public servants, it just seems a bit unlikely - not impossible, but unlikely. If there was a problem here, you'd expect that it would have effected more people than me, and that there would be more of an outcry.

Civil service and public service is not as centrally administrate as you would like to believe.

On reflection in your case barneystinson (above improbably correct) that you were receiving both a higher standard rate band and the home carers tax credit and you are entitled to either or.

If you want I will still look at the p21 and relevant p60s to verify.

AndrewJRenko

Some progress on this query - so it turns out that most of the €1100 underpayment was because of a 'week 54 issue'. They had counted in an extra paydate for 2015 that should have been in the following (or maybe the preceding) year. They corrected their calculation, but now it means that the income showing on the P60 is about €2k higher than the income shown on the P21, which seems a bit odd to me.

But anyway, that left us with a €300-ish underpayment, which as Barney predicted above, seems to be to do with a conflict between the Home Carers credit and the Paye Tax Credit of €1650 for my other half.

Does this rule defeat the purpose of the Home Carers credit? What's the point of claiming that credit if they're just going to take it back off you on the other side?

Anyway, I've gone back and double-checked the Amended Statement of Tax Credit for 2015 shows each of us with the Paye Tax Credit of €1650 and me with the Home Carers Credit too. Was it an error at that stage for them to leave us both with the €1650 credit?

AndrewJRenko

Strange development today - got an amended tax cert for 2017, which shows the full employees tax credit for each of us AND the home carers credit.




Does this mean that they've screwed up again, and set us up for another underpayment?

exaisle

AndrewJRenko wrote: »

Strange development today - got an amended tax cert for 2017, which shows the full employees tax credit for each of us AND the home carers credit.




Does this mean that they've screwed up again, and set us up for another underpayment?

You'd need to show us the tax bands too. They should restrict the tax bands if they're giving you the home carer's tax credit.

The least you should get will be the home carer's credit. If it's more favourable for you to get the extended tax bands, they'll do that when they do the P21 for this year, but if they've left the tax bands as standard then you shouldn't underpay tax this year.

AndrewJRenko

Thanks, there you go, with the tax bands - all advice welcome.



Is there any particular logic to giving you the Home Carers with one hand and then taking it back by adjusting the bands with the other?

exaisle

The 42800 can be increased by up to 24800 OR by the amount of your spouse's income.
Your wife's income of about 5k means that the maximum increase in the 20% band can be 5000...so you'll pay 1000 less tax (paying tax at 20% on 5000 instead of 40%).
Instead of that, you're getting 1100 home carer's credit so you're 100 better off...

You wouldn't get any extra 20% tax band above 42800 if you're getting the home carer's credit.

The way your credits and bands are set up mean that at the very least you get the benefit of the home carer's credit...this is correct, I think.