taxation issue after illness benefit

focusowner

hey guys i wonder if anyone can shed some light on this

i was off work for 10 weeks following an operation and was receiving illness benefit along with partial pay from work - both payments amounted to what i was getting when i was working after tax

total illness benefit amounted to approx 2100 euro


for the last few pay packets ive been crucified though with a deduction on my wage under the heading of Recovery Disability

i get paid every 2 weeks
last month i had €400 removed (plus my tax was being calculated wrong as i lost €1000 total between paye and this disability recovery) and last week the charge had reduced to €160 and my tax seems mostly back to where it should be
may tax basis on payslip has also changed to week 1 instead of cumulative

my question is

what is this recovery disability charge and when does it end ? as my tax credits have already been reduced by the amount of illness benefit ive received so im being taxed more heavily

ps i contacted payroll at work and they said its out of their hands that revenue tell them what to deduct - when i contacted revenue they were slightly helpful but couldnt fix it apart from to say not to worry if im being over charged i can claim it back at the end of the year and no offence to them but thats **** all use to me when im broke now

Grumpypants

Had similar myself first two months back. Hundreds missing from the paycheck as I paid 58% back tax on the meager €200 illness benefit I got.

It is an absolute joke that you pay tax on a social welfare payment but that’s the punishment we get for working.

It took the two months to clear. Make sure you claim for medical expenses, medication & consultants etc.

At the end of the year I got €800 back.

focusowner

its a farce so it is ! why give the payment in the first place if you are gonna take it all back would make more sense to reduce the payment so that its already taxed prior to receiving it - i would have struggled thru the 10 weeks on my reduced wages alone as all thats happened is that ive delayed the loss of wages until i was well

Grumpypants

And it hit just as you are trying to get back on your feet, literally. If you are out long term you have huge medical expenses to contend with. The tax back could easily be deferred until the next year and reduced in your credits. Or at least spread out over the rest of the year not from loaded like that when you need it most.

focusowner

thanks for your reply anyway at least i know im not alone i just wish it was sorted its getting silly at this stage