Income earned outside the state - Penalized twice?

Skiesofeurope

Hi All,

Just a quick question regarding income outside the state.

I commenced work with my current employer in April 2013, prior to this I was working for 3 months in the UK. I declared all income and taxes paid in the UK to Revenue here and they amended my tax credits to account for this.

Now my tax cert for 2014 has been issued and it is showing an adjustment for the same negative tax credits amount for 2014 again (for income outside the state). It results in my lower rate COP being reduced by a significant amount and I cannot understand how I am liable for this again.

I have emailed Revenue asking for clarification including again all documents but I have not received any reply.

Can anybody shed some light for me on what I am liable for in 2014 when the earnings outside the state were adjusted in my credits in 2013 already and were earned in 2013. Why would it affect 2014 credits?

It is quite a significant sum of additonal taxes paid as a result of this adjustment so you can imagine my urgency in getting it sorted

Thanks!

Legend100

without knowing your "exact" circumstances, on a basic level, Revenue often just roll tax credits from one year to the next (can't really expect them to ask every single person if there is a change in their individual circumstances given they are not flush with staff numbers)

your email you sent should sort it out but it may take a few weeks. Your first 2014 pay may be lower than expected if credits are not adjusted on time but you will get it back as soon as revenue make the amendment to your tax credit cert (Feb pay perhaps if you are paid monthly)

dogsears

Legend100 wrote: »

without knowing your "exact" circumstances, on a basic level, Revenue often just roll tax credits from one year to the next (can't really expect them to ask every single person if there is a change in their individual circumstances given they are not flush with staff numbers)

your email you sent should sort it out but it may take a few weeks. Your first 2014 pay may be lower than expected if credits are not adjusted on time but you will get it back as soon as revenue make the amendment to your tax credit cert (Feb pay perhaps if you are paid monthly)

Decent advice here but maybe you'd be better off calling them on the phone? They're very helpful (its a revelation to lots of people!). Emails don't get the same attention.

Mr. Incognito

I don't understand why they would amend your tax credits to account for foreign tax paid and suffered.

Your UK employment income would have been subject to Irish tax. You would received a credit for the UK tax paid and the gross UK amount of earnings would be taxable here. This would not adjust your credits downwards, in fact it should have increased them.

They might also have done and effective rate calculation.

They should not be reducing your credits downwards for 2014. I think you should ask for a balancing statement for 2013 to issue and ensure that no adjustments to your credits are made for 2014. Sounds like someone has misunderstood you when you called the first time.

I think you need to correspond in writing. The phone lines are hit and miss

beauf

They used to be better on the phones. Lately I can't get them at all on the phone. Have got no reply to letters.