Underpayment of tax

I recently requested a review of Tax & USC paid over the past three years through the PAYE online website in the hope I might be due some cash back. I now really regret my decision as it turns out there had been an underpayment of tax for 2012.

The balancing statement I received from Revenue states that this will be collected by reducing my tax credits for 2015.

My question is how exactly will this work?
Will they spread the amount owed over the whole year or will they take a lump sum?

I would appreciate if anyone has any info on this

Mr. Incognito

Register for paye online and ensure you are claiming all credits you are entitled to.

Guide in the stickies. This should reduce the underpayment.

I am already registered for paye online but don't believe I am eligible to claim any of the available expenses for that year.

If Revenue are going to reduce my tax credits for the following year because of this will I end up paying even more tax on a weekly basis until the underpayment is cleared and then return to normal or what is the story?

quadrifoglio verde

Deleted User wrote: »

I am already registered for paye online but don't believe I am eligible to claim any of the available expenses for that year.

If Revenue are going to reduce my tax credits for the following year because of this will I end up paying even more tax on a weekly basis until the underpayment is cleared and then return to normal or what is the story?

Did you buy any prescription medicines in a pharmacy in Ireland in 2012?
Common one that many forget

No, I did not have any doctor visits or prescription medicines during that year so unfortunately I cannot even claim for health expenses.

Citizenpain

The underpayment will be spread over the year ..
Make sure you have claimed personal and paye tax credits if you are entitled to them and medical insurance tax credit if your employer pays your medical insurance

Thanks for the info Citizenpain, I just dont want to find myself in a position where Revenue have taken almost all of my wages in tax for a particular week and leave me with hardly any net cash.

Citizenpain

[Deleted User] wrote: »

Thanks for the info Citizenpain, I just dont want to find myself in a position where Revenue have taken almost all of my wages in tax for a particular week and leave me with hardly any net cash.

Don't worry , they'll spread it

RubyGirl

Hubbie got a bill out for underpayment of USC for 2010/2011 and we just paid a little off every month, he was on job seekers at the time of the bill so we paid €20 a month back. They never questioned it once we started paying it off.