Tax refund I wasn't due

spitonmedickie

Hi,

Not great at understanding taxes so hopefully the below makes sense!

I changed job in February, last month my old employer paid me for an unpaid leave day but then also refunded me USC and PAYE of c. €1500

Old payroll were no help so rang Revenue as felt this was a mistake. They said they saw what old payroll had done and would change my tax credits to recover the amount over paid.

New payroll haven't run for this month yet (or downloaded my tax cert since) but I had a look on MyRevenue and the tax cert issued the day I notified revenue seems to have the exact same figures as the tax cert up there from before the mistake.

Where can I spot how much Revenue are going to take off me? And allied question - do I need to ring them again later in case they take more off me every month once they get whatever is due back?

spitonmedickie

Bumping this folks

Synode

Revenue don't need to adjust your credits. All they need to do is update the details of your previous employment earnings and tax paid. Or in reality, the previous employer informs Revenue, who inform your new employer

spitonmedickie

Thanks for the reply. Not the impression I got from past or current payroll and definitely not what revenue said to me. Wait and see I guess.

mistress_gi

A simmilar thing happened to me, at the end of the year (2018) I put in form 12 and they adjusted everything when issuing the p21.
I ended up owing revenue a bunch of money but they can get it back reducing tax credits in the next few years.
I could pay them back but sure it was their mistake, I questioned it more than once and revenue kept telling me all was correct, so they can take it back in bits!

spitonmedickie

Guess if nothing comes out next paycheque I’ll wait for the end of the year then

mistress_gi

Just to add, when I got the p21 it did state that the reduction in tax credits will only start in 2020. I don't know if that helps

Synode

The most likely reason you were paid the 1,500 is because the old employer didn't pull down updated credits and cutoffs for you i.e. they paid you based on the credits and cut-off they had for you from February (which would have increased accordingly on a time basis) that didn't include details of your pay from new employer. If that's what happened then they didn't know you had pay from another employer and so they refunded tax thinking you'd overpaid based on your credits and cutoff to May. Once they report this to Revenue and Revenue pass these details on to your new Employer it will even itself out. I'd prepare to be taxed heavily this month with your new employer

Synode

mistress_gi wrote: »

Just to add, when I got the p21 it did state that the reduction in tax credits will only start in 2020. I don't know if that helps

P21s are only in relation to previous years, not current years