Do you pay tax on flat rate expenses

Wquirke1234

Hi

Just filled up for form 12 for 2018 recently and the flat rate expenses applied for for tax credits was paid but was taxed. Is this right??

Tga2

Stratvs

If you qualify for flat rate expenses then that is deducted from taxable pay before applying tax at the rate bands. On a year end P21 it will show under deductions ( panel 3 I think ).

Wquirke1234

Stratvs wrote: »

If you qualify for flat rate expenses then that is deducted from taxable pay before applying tax at the rate bands. On a year end P21 it will show under deductions ( panel 3 I think ).

Thanks

My fre was 526. But only received 210 into my account. Looks like I was taxed at 40%

Stratvs

Wquirke1234 wrote: »

Thanks

My fre was 526. But only received 210 into my account. Looks like I was taxed at 40%

No. If the FRE is €526 then that reduces your taxable income by €526. If your marginal rate is 40% then the FRE is worth €526 x 40% = €210.40.

The FRE is not a tax credit of €526 in actual tax, it's an expense of €526 which reduces your income by that amount.

Stratvs

Incidentally if that was only applied to last year now and if you're entitled to it for 2019 you can get it added to your tax credit cert via MyAccount then you don't have to go looking for it at year end.

Wquirke1234

Stratvs wrote: »

Incidentally if that was only applied to last year now and if you're entitled to it for 2019 you can get it added to your tax credit cert via MyAccount then you don't have to go looking for it at year end.

Thanks stratvs