Applied for tax relief on Third level fees but got hit with a bill

missjm

Can anybody please advise on this please?
I recently back dated a claim on my college fees. I attend College part-time and work full-time.
I was sent out 2 P21's. One for year 2012 and one for year 2013.
The higher fees I paid were year 2011 to 2012.
In the P21 I got for year 2012 it claims I owe 450 euro in tax now since they applied the tax credit of tuition fees.
This particular year I was off work on 'stress leave' for a number of months due to a very serious family crisis. I claimed illness benefit during this time as my employer did not pay for any time off. It was totally unavoidable as I had to care for a dying parent and had no time to put anything else in place.
I returned to work half way through that year.

I don't understand now how I can owe money based on this claim. Can anybody explain this to me before I appeal it?

relax carry on

missjm wrote: »

Can anybody please advise on this please?
I recently back dated a claim on my college fees. I attend College part-time and work full-time.
I was sent out 2 P21's. One for year 2012 and one for year 2013.
The higher fees I paid were year 2011 to 2012.
In the P21 I got for year 2012 it claims I owe 450 euro in tax now since they applied the tax credit of tuition fees.
This particular year I was off work on 'stress leave' for a number of months due to a very serious family crisis. I claimed illness benefit during this time as my employer did not pay for any time off. It was totally unavoidable as I had to care for a dying parent and had no time to put anything else in place.
I returned to work half way through that year.

I don't understand now how I can owe money based on this claim. Can anybody explain this to me before I appeal it?

Illness benefit is a taxable source of income. Review the P21 for 2012 to see if all information is correct, eg the taxable illness benefit figure, your pay and tax details and if all credits or reliefs are included.

missjm

In Panel 2 of 2012 P21 they have 0 there for Self Tax deducted. In Panel 1 they have my income from my employment that year and have the DSP Illness Benefit also.

Had I known this would have happened I wouldn't have applied at all.

relax carry on

missjm wrote: »

In Panel 2 of 2012 P21 they have 0 there for Self Tax deducted. In Panel 1 they have my income from my employment that year and have the DSP Illness Benefit also.

Had I known this would have happened I wouldn't have applied at all.

If you are sure those figures are correct and your main credits, (personal and PAYE) are in panel 4 then it would appear the underpayment is correct.
The treatment of the underpayment is on page 1.

missjm

relax carry on wrote: »

If you are sure those figures are correct and your main credits, (personal and PAYE) are in panel 4 then it would appear the underpayment is correct.
The treatment of the underpayment is on page 1.

On page 1 it gives an amount for tax due, then deducts the tax credits. I don't understand the tax due amount as if I was claiming disability benefit and paying my tax through work in the latter half of the year, how was this missed?

So just to get this straight. The money I owe them now is based on my claim? ie. I paid 2,500 euro in Uni fees in 2011 so this is now costing me more? Or is it a case that this was due anyway and I reduced the amount due by my claim?

missjm

Many Thanks for your help so far!

relax carry on

missjm wrote: »

On page 1 it gives an amount for tax due, then deducts the tax credits. I don't understand the tax due amount as if I was claiming disability benefit and paying my tax through work in the latter half of the year, how was this missed?

So just to get this straight. The money I owe them now is based on my claim? ie. I paid 2,500 euro in Uni fees in 2011 so this is now costing me more? Or is it a case that this was due anyway and I reduced the amount due by my claim?

How long were you claiming illness benefit for and how much is on your P21?

CIARAN_BOYLE

missjm wrote: »

On page 1 it gives an amount for tax due, then deducts the tax credits. I don't understand the tax due amount as if I was claiming disability benefit and paying my tax through work in the latter half of the year, how was this missed?

So just to get this straight. The money I owe them now is based on my claim? ie. I paid 2,500 euro in Uni fees in 2011 so this is now costing me more? Or is it a case that this was due anyway and I reduced the amount due by my claim?

This was due anyway revenue only copped on when you claimed and Revenue did a check.

missjm

relax carry on wrote: »

How long were you claiming illness benefit for and how much is on your P21?

Was claiming illness benefit for approx. 5 months. 4,355.04 on P21.

relax carry on

missjm wrote: »

Was claiming illness benefit for approx. 5 months. 4,355.04 on P21.

The illness benefit figure appears correct. I suspect it wasn't accounted for in the year it occurred and was only picked up when you claimed the relief on your fees. Have you anything else to claim for that year at all which could reduce the amount owed? Medical exps, rent?

CIARAN_BOYLE

missjm wrote: »

Was claiming illness benefit for approx. 5 months. 4,355.04 on P21.

I would need more details to do an accurate comp but here is an example of how your figures could fit.

20% paye owed on that €830
€2500 college fees, assume part time student so the first 1125 is disregarded
20% relief on the remaining €1375 college fees is €275

830-275=555 owed

missjm

Thanks to both of you, it's making sense now. If it was owed regardless then I just suck it up. I've put in for medical expenses also this week which will reduce the amount further.