P 60

tom_tarbucket

this is a really stupid question. In regard to the p 60 and tax in general, can anyone explain in plain English what the following mean :


.- tax credits
- rate band
- USC rate band

I know the people on here are probably very tax minded in their terminology.........but if anyone could explain things in plain simple English to a thicko I would really appreciate it.

CIARAN_BOYLE

tom_tarbucket wrote: »

this is a really stupid question. In regard to the p 60 and tax in general, can anyone explain in plain English what the following mean :


.- tax credits
- rate band
- USC rate band

I know the people on here are probably very tax minded in their terminology.........but if anyone could explain things in plain simple English to a thicko I would really appreciate it.

Credits and rate band relate to paye.

Rate band is the amount of money you can earn paying 20% paye

Tax credits is an offset against your paye
Assume rate band is 32800 and tax credits are 3300 and taxable pay is 40000
PAYE=
Rate band 32800×20%=6560
Taxable pay above rate band 7200×41%=2952

6560+2952=9518 gross paye

Gross paye - tax credits =9518-3300=6218

Similarly usc band informs you of how much can be earned at a given rate usc band

tom_tarbucket

CIARAN_BOYLE wrote: »

Credits and rate band relate to paye.

Rate band is the amount of money you can earn paying 20% paye

Tax credits is an offset against your paye
Assume rate band is 32800 and tax credits are 3300 and taxable pay is 40000
PAYE=
Rate band 32800×20%=6560
Taxable pay above rate band 7200×41%=2952

6560+2952=9518 gross paye

Gross paye - tax credits =9518-3300=6218

Similarly usc band informs you of how much can be earned at a given rate usc band

Thanks ciaran. and good example.

I see on my p60 that my tax credit is neither 1650 or 3300. and same for the wife.

yet neither of us have contacted the tax office ever to adjust tax credits.

how or even why do tax credits get adjusted ?

toadfly

What is your tax credit? The standard rate for a single person is 1650 and 1650 for being a PAYE worker so 3300 total. This can change, you get extra for being a carer, if widowed with kids etc. Full list of credits would be on revenue website.

tom_tarbucket

toadfly wrote: »

What is your tax credit? The standard rate for a single person is 1650 and 1650 for being a PAYE worker so 3300 total. This can change, you get extra for being a carer, if widowed with kids etc. Full list of credits would be on revenue website.

mine is 3673. haven't a clue how it is this. I'm not a carer etc. Just a standard worker

toadfly

tom_tarbucket wrote: »

mine is 3673. haven't a clue how it is this. I'm not a carer etc. Just a standard worker

You might be claiming for credits you don't realise. Have a look at the full list on revenue. Do you have some of your wives credits?

tom_tarbucket

toadfly wrote: »

You might be claiming for credits you don't realise. Have a look at the full list on revenue. Do you have some of your wives credits?

my wife's tax credits are 576.
I've never asked anyone or contacted anyone in tax office about tax credits, neither has my wife. wonder how the hell it's like this.

tom_tarbucket

anybody have any idea here about why our tax credits are all over the shop ?

Geuze

You should register for PAYE Anytime, then see the exact breakdown of your tax credits.


Two normal workers married would get tax credits as follows:

Married TC = 3300
PAYE tax credit = 1650 + 1650, one each = 3300


Total = 6600 for a married couple with two workers.

happypants

Go onto revenue.ie and register yourself then your wife, they'll then post you both out a pin. Then you can log on and view which credits you've claimed or which ones you're entitled to but are unclaimed. You can go back as far as 3 years so check out each year and claim the ones your entitled to. You could be due a nice bit of back pay.

tom_tarbucket

happypants wrote: »

Go onto revenue.ie and register yourself then your wife, they'll then post you both out a pin. Then you can log on and view which credits you've claimed or which ones you're entitled to but are unclaimed. You can go back as far as 3 years so check out each year and claim the ones your entitled to. You could be due a nice bit of back pay.

I actually have a login and PIN to revenue.

I doubt I myself am due back pay ? with my tax credits being high like ?

toadfly

tom_tarbucket wrote: »

I actually have a login and PIN to revenue.

I doubt I myself am due back pay ? with my tax credits being high like ?

Between the two of you, you should if those have been your credits for last few years.

tom_tarbucket

So, from my limited knowledge, the higher the tax credits you have the better ??

For some reason my tax credit is 3673
The wife's is 576

Does that mean the wife is getting a very raw deal here ?

We have never rang the tax office to change anything, but she was off work for 9 months last year ( baby )

toadfly

It does seem that yours are slightly high whereas hers are way down. Is she on a week 1 basis? As maternity is now taxed the credits will sometimes be adjusted and changed to a week 1 after maternity.

Yes the higher credits the better.

You pay tax up to €32800 @ 20% minus tax credits so example

Gross of €20000 a year
20000*20%=4000
minus tax credits of 3300 (for normal worker)
Leaves you at paying tax of 700 in the year. If your credits are correct at 3673 you then pay only 327 tax in the year.

EDIT: Does your wife have a second job that her credits might be split?

tom_tarbucket

toadfly wrote: »

It does seem that yours are slightly high whereas hers are way down. Is she on a week 1 basis? As maternity is now taxed the credits will sometimes be adjusted and changed to a week 1 after maternity.

Yes the higher credits the better.

You pay tax up to €32800 @ 20% minus tax credits so example

Gross of €20000 a year
20000*20%=4000
minus tax credits of 3300 (for normal worker)
Leaves you at paying tax of 700 in the year. If your credits are correct at 3673 you then pay only 327 tax in the year.

EDIT: Does your wife have a second job that her credits might be split?

yeah its weird the way hers are down. she does not have a 2nd job.

in regard to her, she was made redundant about 5 years ago, then was off work for a year and a half, then got a new job, then 2 years in to that got pregnant, was off for 9 months and is now 2 months back to work on a 4 day week, so maybe it had something to do with all that carry on.

allthedoyles

looks like tax credits have been reduced ......................Balancing statements from 2010 is best way to see whats been going on.

tom_tarbucket

allthedoyles wrote: »

looks like tax credits have been reduced ......................Balancing statements from 2010 is best way to see whats been going on.

whose balancing statement would I be looking at - hers or mine or both ?

and why 2010 - cause it's 5 years ago ?

relax carry on

tom_tarbucket wrote: »

whose balancing statement would I be looking at - hers or mine or both ?

and why 2010 - cause it's 5 years ago ?

If you are jointly assessed then one P21 will show both your details for each year you are jointly assessed. Go back to 2010 to see if you can pick up when this anomaly started. Alternatively contact Revenue and ask for any explanation as to what has happened. Email better than phone if it's going to take the staff member assigned a bit of time to figure it out.

tom_tarbucket

relax carry on wrote: »

If you are jointly assessed then one P21 will show both your details for each year you are jointly assessed. Go back to 2010 to see if you can pick up when this anomaly started. Alternatively contact Revenue and ask for any explanation as to what has happened. Email better than phone if it's going to take the staff member assigned a bit of time to figure it out.

to be jointly assessed, would we have had to have contacted the tax office and requested to be jointly assessed ? cause if so, we have never done that.

Or does it just automatically default to jointly assessed when you get married ?

relax carry on

tom_tarbucket wrote: »

to be jointly assessed, would we have had to have contacted the tax office and requested to be jointly assessed ? cause if so, we have never done that.

Or does it just automatically default to jointly assessed when you get married ?

No, one of you would have to have contacted Revenue for it to be applied. So you should still be listed as single. It would seem it's an issue on your spouses side only then. She will have to contact Revenue herself in order to resolve the issue.
As an aside why not opt for joint assessment?

http://www.revenue.ie/en/tax/it/leaflets/it2.html

tom_tarbucket

relax carry on wrote: »

No, one of you would have to have contacted Revenue for it to be applied. So you should still be listed as single. It would seem it's an issue on your spouses side only then. She will have to contact Revenue herself in order to resolve the issue.
As an aside why not opt for joint assessment?

http://www.revenue.ie/en/tax/it/leaflets/it2.html

Thanks. but on the whole opting for joint assessment. firstly. I need to read in to it. Secondly, I presume opting for joint assessment may not necessarily be the best thing to do ? I.e it all depends on how much each person earns and remaining singly assessed may even be better ?

allthedoyles

tom_tarbucket wrote: »

mine is 3673. haven't a clue how it is this. I'm not a carer etc. Just a standard worker

Is this figure of 3673 on your tax credit cert or payslip ?

tom_tarbucket

allthedoyles wrote: »

Is this figure of 3673 on your tax credit cert or payslip ?

was on my 2013 p 60 document. why ?

allthedoyles

tom_tarbucket wrote: »

was on my 2013 p 60 document. why ?

Just trying to figure out what the extra €373 is ..........While youre there now , can you let us know what the cut-off is on your P60 ?

tom_tarbucket

allthedoyles wrote: »

Just trying to figure out what the extra €373 is ..........While youre there now , can you let us know what the cut-off is on your P60 ?

just checked it there twice. don't see anything about a cut off. I see a rate band of 32800

allthedoyles

tom_tarbucket wrote: »

just checked it there twice. don't see anything about a cut off. I see a rate band of 32800

Thats perfect - looks like you are on single allowances and would confirm what you said above that neither of you contacted the tax office to let them know ye married.

So you have an extra €373 tax credits or €1800 actual allowances .


It doesnt tell us why your wife only is allowed €576 though, but as she was on maternity leave , its probable that her credits were reduced by the amount of maternity benefit received .

register for payeanytime , have a look online at your tax credits , order balancing statements .................update you personal circumstances to the tax office including marriage / children.

then ask for updated balanceing statements to take account of updated information.

If ye want, ye can remain as single asssessment during tax years , and note that when your balancing statements are been issued , the tax office will always give you the benefit of whichever is most beneficial , whether that is single assessment , separate assessment , or joint assessment.

Now you also asked about USC , and there are 2 rates , one for medical card holders and one for non medical card holders , so once again , if either of ye held a medical card at any time since 2010 , inform tax office .

tom_tarbucket

allthedoyles wrote: »

Thats perfect - looks like you are on single allowances and would confirm what you said above that neither of you contacted the tax office to let them know ye married.

So you have an extra €373 tax credits or €1800 actual allowances .


It doesnt tell us why your wife only is allowed €576 though, but as she was on maternity leave , its probable that her credits were reduced by the amount of maternity benefit received .

register for payeanytime , have a look online at your tax credits , order balancing statements .................update you personal circumstances to the tax office including marriage / children.

then ask for updated balanceing statements to take account of updated information.

If ye want, ye can remain as single asssessment during tax years , and note that when your balancing statements are been issued , the tax office will always give you the benefit of whichever is most beneficial , whether that is single assessment , separate assessment , or joint assessment.

Now you also asked about USC , and there are 2 rates , one for medical card holders and one for non medical card holders , so once again , if either of ye held a medical card at any time since 2010 , inform tax office .

Thanks for that.

I see on my payslip that I have 2 entries as follows.

Employee Medical Taxable
Dependent Medical Taxable

would my tax credits be higher because or this ?

I also see a mention of rent allowance on my tax credit thing on paye anytime online, dunno if that makes a difference to anything.

allthedoyles

tom_tarbucket wrote: »

Thanks for that.

I see on my payslip that I have 2 entries as follows.

Employee Medical Taxable
Dependent Medical Taxable

would my tax credits be higher because or this ?

I also see a mention of rent allowance on my tax credit thing on paye anytime online, dunno if that makes a difference to anything.

Tax credits possibly higher due to rent.

Best to go with the earlier advice and when you have balancing statements, come back to this thread.

tom_tarbucket

allthedoyles wrote: »

Tax credits possibly higher due to rent.

Best to go with the earlier advice and when you have balancing statements, come back to this thread.

is the balancing statement = p 21 form ?

Kristopherus

Tom, make sure you contact the local tax office/Revenue as a matter of urgency. If you are due tax back, then you can only claim a max of 4yrs back. As we are now in mid-Dec, you have only 2 weeks to claim for 2010. Get balancing Statements (P21) for 2010,11,12 & 13 as a matter of urgency. This may entail going in person to the local tax office.

tom_tarbucket

Kristopherus wrote: »

Tom, make sure you contact the local tax office/Revenue as a matter of urgency. If you are due tax back, then you can only claim a max of 4yrs back. As we are now in mid-Dec, you have only 2 weeks to claim for 2010. Get balancing Statements (P21) for 2010,11,12 & 13 as a matter of urgency. This may entail going in person to the local tax office.

I actually ordered these p 21 statements a couple of weeks ago and have them back as far as 2010.

what exactly am I looking for on these statements ?

allthedoyles

tom_tarbucket wrote: »

I actually ordered these p 21 statements a couple of weeks ago and have them back as far as 2010.

what exactly am I looking for on these statements ?

Suppose the first thing you would look at is the total tax credits ............is it the same as your P60 of 3673

tom_tarbucket

allthedoyles wrote: »

Suppose the first thing you would look at is the total tax credits ............is it the same as your P60 of 3673

so from the P21 statements :

Tax credits for 2010 = 4,232 ( dont have the P60 for 2010 to hand )
Tax credits for 2011 = 3,792 ( the P60 for this year has 3,792 as the tax credits )
Tax credits for 2012 = 3,712 ( the P60 for this year has 3,712 as the tax credits )
Tax credits for 2013 = 3,988 ( the P60 for this year has 3,673 as the tax credits )


- The rent tax credit has decreased every year since 2010 from 400 to 200 for 2013. dunno why ?

- then my medical insurance rlf went from 172 in 2010, 2011 and 2012 to 488 in 2013 ( 2013 was the year I got increased cover for wife and baby etc so maybe this is why this went up )

- Personal and paye tax credit are both at 1650 for 13,12,11. but both 1830 in 2010, probably something to do with budget change etc.

allthedoyles

tom_tarbucket wrote: »

so from the P21 statements :

Tax credits for 2010 = 4,232 ( dont have the P60 for 2010 to hand )
Tax credits for 2011 = 3,792 ( the P60 for this year has 3,792 as the tax credits )
Tax credits for 2012 = 3,712 ( the P60 for this year has 3,712 as the tax credits )
Tax credits for 2013 = 3,988 ( the P60 for this year has 3,673 as the tax credits )


- The rent tax credit has decreased every year since 2010 from 400 to 200 for 2013. dunno why ?

- then my medical insurance rlf went from 172 in 2010, 2011 and 2012 to 488 in 2013 ( 2013 was the year I got increased cover for wife and baby etc so maybe this is why this went up )

- Personal and paye tax credit are both at 1650 for 13,12,11. but both 1830 in 2010, probably something to do with budget change etc.

Theres a genuine reason why your rent has decreased each year as the relief is like this :

• 2010 - 400
• 2011 - 320
• 2012 - 240
• 2013 - 200
• 2014 - 160 and it will disappear completely in 2017

Does your employe pay your medical insurance ?


Its obvious you are been assessed as single



Do you have your wifes balancing statements ?

tom_tarbucket

allthedoyles wrote: »

Theres a genuine reason why your rent has decreased each year as the relief is like this :

• 2010 - 400
• 2011 - 320
• 2012 - 240
• 2013 - 200
• 2014 - 160 and it will disappear completely in 2017

Does your employe pay your medical insurance ?


Its obvious you are been assessed as single



Do you have your wifes balancing statements ?

thanks very much.

wasnt even aware of that rent relief thing and values set as certain figures each year etc.

my empploye pays my medical insurance alright, we have a "flex it" system in work. and kast year I got dearer health insurance than other years and my payslip now shows 1. Employee Medical Taxable 2. Dependent Medical Taxable and these 2 values are higher for 2014


Dont have my wifes balancing statements to hand. She is looking for her PAYE anytime PIN though.

So there is P60 tax credit figure and a P21 tax credit figure..............which one is valid normally ?

allthedoyles

P21 is final -

Anyway its back to square one again...................You contact tax office , you update your personal circumstances , informing them of marriage , children , rent paid , medical relief paid for you etc

You ask for new balancing statements to include both your incomes .
They will always give you whichever is most beneficial , whether that is single, joint etc .

If you wish you can tell them to leave your tax credits as they are for working during the year .

When all this is done ,and you have your new P21's , come back to this thread .

tom_tarbucket

allthedoyles wrote: »

P21 is final -

Anyway its back to square one again...................You contact tax office , you update your personal circumstances , informing them of marriage , children , rent paid , medical relief paid for you etc

You ask for new balancing statements to include both your incomes .
They will always give you whichever is most beneficial , whether that is single, joint etc .

If you wish you can tell them to leave your tax credits as they are for working during the year .

When all this is done ,and you have your new P21's , come back to this thread .

could updating my personal circumstances put me in a worse position as regards tax though ?

I don't understand what you mean by :

"If you wish you can tell them to leave your tax credits as they are for working during the year ."

allthedoyles

tom_tarbucket wrote: »

could updating my personal circumstances put me in a worse position as regards tax though ?

I don't understand what you mean by :

"If you wish you can tell them to leave your tax credits as they are for working during the year ."

It means that you can if you wish continue as two single people working from jan-dec , and at year end be treated as joint assessment when applying for P21
There are other options , and the tax office will give you full details