Tax Credits Halved

NiallC33

Hi
My australian girlfriend is here on a 1 year working holiday visa. today she got her payslip and noticed she was down over 400 euros for the month. we looked at her payslip and it appears her tax credits are being halved from 275 to 137.5.
she earns 20k a year and for this month, she is paying over 40% tax on it
she rang revenue who told her that as she only has up until the end of june left to work , they have halved her credits and that as she was a on a working hol visa, she should have ALWAYS had credits of 137.5 as she is not an irish resident ?

is there anything that can be done here. basically revenue are saying they made a mistake and are now slashing her credits in half.
i pay the top rate of tax as i earn twice her salary and she is now paying approx the same tax as myself.
any advice or input would be greatly appreciated
Niall

NiallC33

just to add , i am not looking for tax advice, i would jus tlike to know if any workers from abroad have alsoe faced this scenario

Greenmachine

NiallC33 wrote: »

Hi
My australian girlfriend is here on a 1 year working holiday visa. today she got her payslip and noticed she was down over 400 euros for the month. we looked at her payslip and it appears her tax credits are being halved from 275 to 137.5.
she earns 20k a year and for this month, she is paying over 40% tax on it
she rang revenue who told her that as she only has up until the end of june left to work , they have halved her credits and that as she was a on a working hol visa, she should have ALWAYS had credits of 137.5 as she is not an irish resident ?

is there anything that can be done here. basically revenue are saying they made a mistake and are now slashing her credits in half.
i pay the top rate of tax as i earn twice her salary and she is now paying approx the same tax as myself.
any advice or input would be greatly appreciated
Niall

If she intends to return to Australia permanently after, her working visa, she can claim alot of the tax back.

NiallC33

Greenmachine wrote: »

If she intends to return to Australia permanently after, her working visa, she can claim alot of the tax back.

thanks , but revenue said as her credits have always been calculated wrong, she wont get much back. she said the woman was quite hostile and it reduced her to tears as she doesnt quite understand the irish tax system. in aus, its 30% tax of your salary , no credits etc

i just want to know if the revenue woman was correct in saying that she should have always had low tax credits which i dont get as how can someone earning 20k a year, pay over 40% tax on it ?

relax carry on

NiallC33 wrote: »

thanks , but revenue said as her credits have always been calculated wrong, she wont get much back. she said the woman was quite hostile and it reduced her to tears as she doesnt quite understand the irish tax system. in aus, its 30% tax of your salary , no credits etc

i just want to know if the revenue woman was correct in saying that she should have always had low tax credits which i dont get as how can someone earning 20k a year, pay over 40% tax on it ?

Its because of her residence position.

What exactly is her residence position? If she heading back to Australia in June?

http://www.revenue.ie/en/tax/it/residence.html

NiallC33

relax carry on wrote: »

Its because of her residence position.

What exactly is her residence position? If she heading back to Australia in June?

she is here on a one year working holiday authorisation. we met when i lived there, fell in love etc etc, and ar enow going through a visa application for Australia. in the meantime so we can be together while that is being processed, we moved to Ireland so we would both work. she got a 1 year working hol visa, she registered with Garda immigration etc. she is finishing her visa/work at the end of june but will then leave and re-enter the country to activate a 90 day tourist visa. she wont be working , its just so we wont be seperated until we get the visa sometime in september and then we'll both be heading back to aus

NiallC33

reading that link on residency, she would fall under the part regarding Citizen of Double Taxation Country:
Full tax credits are allowable on a Cumulative Basis where the person's only source of income is Irish source income

as she is an aus citizen, so therefore should she not have full tax credits ?

relax carry on

NiallC33 wrote: »

reading that link on residency, she would fall under the part regarding Citizen of Double Taxation Country:
Full tax credits are allowable on a Cumulative Basis where the person's only source of income is Irish source income

as she is an aus citizen, so therefore should she not have full tax credits ?

She will need to outline her case to Revenue giving her exact circumstances and highlighting the residency rules in order for them to review their decision.