Underpayment of tax

sarah1985

Hey, been in my current employment 4 years. Request a p21 for the last years and discovered a underpayment of tax to the value 2000 euro has happened. I work in a preschool which is part of a primary school. Wages are done by secretary and the accountant. I query this and both accountant and secretary don’t know where this has come from. I work from September to June and on social welfare for July and August. Would anybody be able to help me understand this. My tax credit will be reduced for the next two years to recoup the underpayment.

screamer

Lots of us can help but the best places to help you will be revenue. Call them up with your PPS number and ask them to go through it with you.

0ph0rce0

sarah1985 wrote: »

Hey, been in my current employment 4 years. Request a p21 for the last years and discovered a underpayment of tax to the value 2000 euro has happened. I work in a preschool which is part of a primary school. Wages are done by secretary and the accountant. I query this and both accountant and secretary don’t know where this has come from. I work from September to June and on social welfare for July and August. Would anybody be able to help me understand this. My tax credit will be reduced for the next two years to recoup the underpayment.

You pay tax on some social welfare payments.

Most likley tax for the last few years on the payments you have claimed.


Like the post says above call revenue.

CIARAN_BOYLE

It's the tax on social welfare for the last few years.

If you want to share the p21 (with identified information blacked out) I can walk you through the calculation or you can accept this.

Also does your employer give you a p45 every June? Did you notice you September net salary was higher than your June salary? Well you shouldn't have gotten that big net salary every september.

sarah1985

Thank you, your the first person who is talking sense. I phone the revenue and they weren't explaining it very well. I work from September to June every year. its a preschool under the ECCE scheme. I claim social welfare July and August in which i get job seekers and i am back at work September. I don't get a P45 every June as i am back working again September. I do however get a higher wage the first week back in September. now i queried this and was assured that i was due it back. thank you for the advice.

CIARAN_BOYLE

sarah1985 wrote: »

Thank you, your the first person who is talking sense. I phone the revenue and they weren't explaining it very well. I work from September to June every year. its a preschool under the ECCE scheme. I claim social welfare July and August in which i get job seekers and i am back at work September. I don't get a P45 every June as i am back working again September. I do however get a higher wage the first week back in September. now i queried this and was assured that i was due it back. thank you for the advice.

Your welcome.

Revenue don't update your tax cert for social welfare information unless you start a new employment.

The way this would normally be done practically would be to issue a p45 in June when you finish up and register you as a new employee in September when you start again. That way your tax cert would update.

Yours doesn't. This means you get 8 weeks (July and August) tax credits in your first week back in September without your employer 'officially knowing about social welfare'.

exaisle

In order to prevent a repeat for 2017 and subsequent years, contact Revenue on 01 7023011 (don't use the 1890 number) and ask them to put you on a Week1/Month1 basis.
That means you'll only use your tax credits for any particular week/fortnight/month in weeks/fortnights/months where you actually work.

Also, be sure to request a P21 every year as the likelihood is that you'll be due a small refund each year.

Possibly better to have a small refund every year than a bill?