ROS Form 11 showing liability but think am due refund

LadyBetty

I am doing Pay & File on ROS at the moment for 2014. I am self employed, husband is PAYE and we are jointly assessed.

By my calculations of my own I&E I am due a small refund however ROS is calculating a liability of a few hundred euro. My husband, being PAYE, can't owe tax (right?), so is there something in being "jointly assessed" that can give rise to a liability, like how the credits are shared perhaps? I became assessable spouse halfway through 2014, meaning his credits then changed - could that lead to a tax liability at year end on a joint assessed basis?

I have rang Revenue (various numbers at this stage) and still cannot get an answer to my question. They have twice failed to send a PIN to access his PAYE Anytime, so I got them to confirm his P60 details over the phone & it matches what I have input.

I just want to get rid of the stupid ROS form now,it is haunting my dreams at this stage

DmanDmythDledge

Do you have access to your husband's tax credit certificate? This should tell you what tax credits and rate bands would have been applied to his 2014 PAYE income. It should also be on his P60.

Just to be sure, rate bands should be:

Income Tax
€41,800 at 20%
€23,800 at 20%
Balance at 41%

USC
On the first €10,036 2%
On the next €5,980 4%
On the balance 7%

PRSI
4%

Tax Credits
Married person’s/civil partner’s credit €3,300
PAYE credit €1,650

Obviously more credits could apply to your circumstances.

Are you using the above information?

LadyBetty

Thanks for the response. Yes I have his tax cert dated Aug 2014 showing:

Rate band 1 €41,800
decreased by Allocation to Other Income €9,000
Amount of Income taxable at 20% €32,800 (no idea what €9k is about?)

All remaining income taxable at 41%.

This is why I wanted access to his PAYE Anytime but as I said Revenue has failed twice to send me the PIN, and now there are just 2 days to deadline.

There is an issue re. one of his tax credits too, he is entitled to rent credit of €320 per tax cert but ROS is automatically populating €160 for this and I will have to correct it manually in the Self Assessment section of the Form 11. God I can't wait to send off the flipping thing & move on with my life.

LadyBetty

Deadline tomorrow, can anyone shed light on my query? Could a tax liability arise from the way the tax credits are divided between spouses?

As I am self employed my only tax credit is the personal one €1,650.
Husband has personal €1,650 plus PAYE €1,650 plus rent tax credit €320.
During 2014 I became assessable spouse, rather than him.

barneystinson

LadyBetty wrote: »

Deadline tomorrow, can anyone shed light on my query? Could a tax liability arise from the way the tax credits are divided between spouses?

As I am self employed my only tax credit is the personal one €1,650.
Husband has personal €1,650 plus PAYE €1,650 plus rent tax credit €320.
During 2014 I became assessable spouse, rather than him.

Was the tax cert that issued in August, on a cumulative basis, or a week 1 basis?

relax carry on

LadyBetty wrote: »

Deadline tomorrow, can anyone shed light on my query? Could a tax liability arise from the way the tax credits are divided between spouses?

As I am self employed my only tax credit is the personal one €1,650.
Husband has personal €1,650 plus PAYE €1,650 plus rent tax credit €320.
During 2014 I became assessable spouse, rather than him.

Depending on how credits and rate bands were shared in the year in a joint assessed case, there can be an underpayment of tax occasionally. It can happen if the rate bands and credits have been switched around a few times.

The 9000 euro by the way allocated to other income seems to suggest that Revenue believe there is another source of income which needed the 9000 set aside for.

In the calculation on ROS, can you see where the difference is occurring when your compare it with your own calculation?

LadyBetty

barneystinson wrote: »

Was the tax cert that issued in August, on a cumulative basis, or a week 1 basis?

It is:
"For the period 13 August to 31 December 2014 and each subsequent year on a
Week 1 / Month 1 Basis"

LadyBetty

relax carry on wrote: »

Depending on how credits and rate bands were shared in the year in a joint assessed case, there can be an underpayment of tax occasionally. It can happen if the rate bands and credits have been switched around a few times.

The 9000 euro by the way allocated to other income seems to suggest that Revenue believe there is another source of income which needed the 9000 set aside for.

In the calculation on ROS, can you see where the difference is occurring when your compare it with your own calculation?

Yes the tax credits have switched between us a few times: in 2013 we got married & my husband got all the tax credits (as I was out of work). In Aug 2014 I became the assessable spouse as was earning more than him. This year he took the tax credits again (as I'm out of work again).

No idea what the €9k is about, he only has 1 source of income.

I calculated my own tax bill on a spreadsheet, then worked out my husband's beside it...cannot understand how ROS liability is arising, unless it is something odd with the tax credits switching between us etc.
And like I say ROS is also showing rent tax credit for him of €160 when it should be €320.

barneystinson

LadyBetty wrote: »

It is:
"For the period 13 August to 31 December 2014 and each subsequent year on a
Week 1 / Month 1 Basis"

And was there a change in the apportionment of the tax credits at that time too, or what triggered that new cert to issue?

HcksawJimDuggan

LadyBetty wrote: »

Yes the tax credits have switched between us a few times: in 2013 we got married & my husband got all the tax credits (as I was out of work). In Aug 2014 I became the assessable spouse as was earning more than him. This year he took the tax credits again (as I'm out of work again).

No idea what the €9k is about, he only has 1 source of income.

I calculated my own tax bill on a spreadsheet, then worked out my husband's beside it...cannot understand how ROS liability is arising, unless it is something odd with the tax credits switching between us etc.
And like I say ROS is also showing rent tax credit for him of €160 when it should be €320.

Rent tax credit is capped at €160 for 2014 assuming your husband is under 55.

Correction - doubles up to €320 for couples jointly assessed.

Have you claimed the rent tax credit for both yourself and your husband or just filled it out in his section?

LadyBetty

barneystinson wrote: »

And was there a change in the apportionment of the tax credits at that time too, or what triggered that new cert to issue?

Yes he rang Revenue in August to change our tax credit apportionment, hence the tax cert was issued then.

LadyBetty

HcksawJimDuggan wrote: »

Rent tax credit is capped at €160 for 2014 assuming your husband is under 55.

Correction - doubles up to €320 for couples jointly assessed.

Have you claimed the rent tax credit for both yourself and your husband or just filled it out in his section?

It is just filled out in his section on ROS. But on his tax cert for 2014 it shows €320.
I have never registered for the rent tax credit (though think I would be eligible as was renting in 2010 before cut-off date, but never submitted the necessary form to claim it). Hence why I have not ticked it on ROS. Should I..?

relax carry on

LadyBetty wrote: »

It is just filled out in his section on ROS. But on his tax cert for 2014 it shows €320.
I have never registered for the rent tax credit (though think I would be eligible as was renting in 2010 before cut-off date, but never submitted the necessary form to claim it). Hence why I have not ticked it on ROS. Should I..?

Yes. The 320 is for both of you. 160 x 2.

Also if an underpayment still exists it may be because of the switching of the credits and rate band and ending up on a week one basis. There's literally no way for us to know without knowing all the details. You may wish to consult an accountant if you aren't sure.

barneystinson

LadyBetty wrote: »

It is just filled out in his section on ROS. But on his tax cert for 2014 it shows €320.
I have never registered for the rent tax credit (though think I would be eligible as was renting in 2010 before cut-off date, but never submitted the necessary form to claim it). Hence why I have not ticked it on ROS. Should I..?

It doesn't matter what tax credits are on his tax credit cert, that was issued to his employer for operating the PAYE system. You are now filling in a self assessment tax return for both of you, and you need to claim whatever credits are due, so if you don't tick the box to claim a PAYE credit for him, then it won't be in the calculation, likewise rent tax credit or any other credit...

LadyBetty

OK I'll tick rent tax credit for myself also. Think at this stage I may just pay the 2014 liability & 2015 preliminary tax of same amount (even though not working & Christmas is coming arrgh!!)

Thanks all for your help, much appreciated.