Tax Calculation Thread

nhg

https://www.boards.ie/discussion/comment/120102131#Comment_120102131

You don’t need to do any calculations for Remote Working Relief, the system will do all of that.

You need to input the amount you paid for each service being claimed for in the year and upload a copy of the bills to match the claim i.e. you upload all electricity, heating & broadband bills for 2022. (In terms of broadband if your supplier also provides you with a tv package, you enter the amount that’s for broadband only but you upload the invoice which displays the full amount including tv)

You have to enter the number of days you worked remotely in the year. You will also be asked if you received a contribution from your employer, if yes the amount received.

The system will do the rest.

GBX

Super, thanks. Wasn't sure. Appreciate the replies.

Jamie2k9

I have a question on WFH releif.

I rent in Dublin and rent is part of bills so I don't see the bills.

I was hoping to just claim off my family home's bills even though I didn't make a financial contribution to them via offical channels anyay. I was home during 2020 working remotely and hve access to all the bills in my parants names. I have access to those for 2021/2022 as well.

I just want to see what revenue would think about this as they say you need to show evidence you contribated.

Its a pretty small amount probablly less than 100 quid per year but I am just worried if they audited.

Sono Topolino

As I understand it, you need to be the account holder to claim the relief. The gas bill here is in my wife’s name and although I contributed towards it i can’t claim the credit.

tmh106

Does anyone know if the WFH relief is covered under the four year rule or do I have to claim it by Oct 31 of the following year? For example, can I still claim relief for 2021 or am I too late? Thanks.

relax carry on

https://www.boards.ie/discussion/comment/120114043#Comment_120114043

It's just like any other credit/relief; you have up to 4 years to claim it by filing/amending your tax return for the relevant tax year.

Dave_D_Rave

Lads would anyone be able to do a quick calc for a combined PAYE & Ltd income in a year.

Income from PAYE would be €80,000

Income from Ltd 40,000

Pension Contribution from Ltd 24,000

High level would do.

Any advice appreciated.

Madeoface

https://www.boards.ie/discussion/comment/120344059#Comment_120344059

The PWC site has a very quick tax calculator. Try that.

Dave_D_Rave

Thanks I am familair with that website its very useful; but it doesnt allow you to include a Directors Pension from the Ltd earnings (That I can see).

It looks to mee that it only allows Pension contributions from the PAYE income

Sono Topolino

https://www.boards.ie/discussion/comment/120344387#Comment_120344387

Is there a reason you think that a company pension contribution is a BIK? I thought Finance Act 2022 changed that.

Dave_D_Rave

Hi Sono;

Im a bit unsure of what your saying (more lack of knowledge on my part).

Currently any Directors company pension payments reduce down my tax liability.

For example if my Gross is 100k and my pension is 24k; my taxable income is now 76k. The pension payments get taken at source (no Tax, PRSI or USC taken out)

Now I have a potential PAYE job offer in pipe works and the option to remain part time in my current role.

This would mean that my PAYE salary is 80k and my Ltd company salary is 40k. I would like to keep up my 24k pension payments.

So I suppose I am trying to weigh up what this would look like tax wise.

Seve OB

https://www.boards.ie/discussion/comment/120360497#Comment_120360497

what you mean ltd company?

it's all PAYE surely?

Dave_D_Rave

https://www.boards.ie/discussion/comment/120360993#Comment_120360993

No its not all PAYE.

My new role would be PAYE; but existing role is Ltd Company which shall have hours reduced.

Seve OB

https://www.boards.ie/discussion/comment/120361723#Comment_120361723

explain what you mean by ltd company? most companies are ltd companies

do you not currently get stopped PAYE from your remuneration there? i don't think you are giving enough information here

it is confusing because you you even say yourself that pension is being taken at source

my Gross is 100k and my pension is is 24k; my taxable income is now 76k. The pension payments get taken at source (no Tax, PRSI or USC taken out)

this indicates to me that you are being deducted PAYE through your directors remuneration

of course possible you are issuing invoices and declaring your own tax?

Seve OB

https://www.boards.ie/discussion/comment/120355547#Comment_120355547

where does it say that it's a BIK?

Dave_D_Rave

Apologies for the confusion I'll try to clarify.

Currently I am a director of a Ltd Company Gross Income is 100K; 24k Pension contribution (directors pension) which is taken at source.

Taxable income is €76k

My accountant does my payroll every month and I take a monthly wage from that lets say €6333 (76000/12) for arguments sake.

Taxes, USC, PRSI are all payed out on above figue no funds left in company. (Maybe not conventional but not illiegal in any way & suits my circumstances)

The above would be the common for people in my industry up and down the country.

Seve OB

https://www.boards.ie/discussion/comment/120362760#Comment_120362760

so payroll being done and you get a payslip then which shows your payments/pension/tax deductions?

that is PAYE income. it doesn't matter that you are a director. the only difference could be PRSI band based on whether or not you are a proprietary director

Dave_D_Rave

Cheers Seve looks like we are on the same page now.

So am I correct in saying that I should treat all my income from Ltd Company and PAYE job as PAYE essentlially when using the PWC Calculator ?

Seve OB

https://www.boards.ie/discussion/comment/120364867#Comment_120364867

I’m not familiar with the calculator but I’m sure it will give you a close idea alright

Hotblack Desiato

Possibly stupid question but I've finally got around to totting up the family medical expenses for 2020, 21 and 22. Have claimed on MyAccount for previous years no problem, but there's a bit of a complication since Covid.

I haven't got around to working out how much I can claim for WFH relief for these years, and I probably won't for a good while either. Can I claim the health expenses now and then go back whenever (within the four year limit) to amend the return to add WFH expenses?

Or as it says I'm making a "tax return" (are they trying to scare the daylights out of PAYE workers or what?) then I'm declaring that all income and reliefs are correct and I can't go back for another bite later?

nhg

https://www.boards.ie/discussion/comment/120394236#Comment_120394236

Yes, you can go back in and amend the income tax return, after submitting the tax return, once the 1st return has been processed, when you log back in the next time you will be given the option ‘amend’, select that and add whatever expenses that you need to add and submit. An amended Statement of Liability will then issue for the year & any further refund will be transferred to your bank account or if your previous return for that year had an underpayment, the collection method will re-calculate.

Hotblack Desiato

That's what I was hoping! Thanks a lot @nhg