Owe Tax

Tobecontinu

Hello. I was working in the UK in 2017 but not for all the time. Maybe 6 months of the year. Do I owe tax in Ireland for this time? I was already taxed in the UK.

Another question. If you owe tax, do you have to pay it off at once or does revenue let you do a type of payment plan?

Portsalon

Tobecontinu wrote: »

Hello. I was working in the UK in 2017 but not for all the time. Maybe 6 months of the year. Do I owe tax in Ireland for this time? I was already taxed in the UK.

Another question. If you owe tax, do you have to pay it off at once or does revenue let you do a type of payment plan?

More info needed. For example did you also work in Ireland in 2017?

But easiest thing to do is to file a tax return and let revenue decide.

Tobecontinu

Portsalon wrote: »

More info needed. For example did you also work in Ireland in 2017?

But easiest thing to do is to file a tax return and let revenue decide.

No, I didn't work in Ireland, may have been on social welfare for a little bit. Will I get a late fee if I file a tax return now?

Calahonda52

You will get credit for the tax paid in the UK so the final number depends on the amounts involved.

Irishphotodesk

It’s more likely you will receive a tax rebate, but all down to the numbers involved, revenue are extremely helpful people if you are honest with them and they have no reason to think otherwise.

Tobecontinu

Will there be a late fee to pay?

Irishphotodesk

Tobecontinu wrote: »

Will there be a late fee to pay?

Unlikely, but revenue can give you the answers to your specific claim.

It may be possible that you may be entitled to monies back from her majesties revenue service, if you only worked 6months of the tax year in UK,

Similarly, if you paid tax at some point during that tax year in Ireland you should be entitled to claim tax back.

You may be entitled to claim back tax if you have paid tax and not worked the full year (it all depends on who you are claiming from, in your situation it may be both, but all depends on how much work you did during that tax year)

Irishphotodesk

For your other question, if you do owe tax, yes revenue will allow you to pay it off over a period of time, they would like it as fast as possible and will assess your ability to pay so you cannot lie to them and say you cannot afford to make repayments without a valid reason - they have access to your accounts.

Tobecontinu

Irishphotodesk wrote: »

For your other question, if you do owe tax, yes revenue will allow you to pay it off over a period of time, they would like it as fast as possible and will assess your ability to pay so you cannot lie to them and say you cannot afford to make repayments without a valid reason - they have access to your accounts.

I didn't earn that much in the UK. About 10k. What do you mean they have access to my accounts? My bank accounts?

Tobecontinu

For such a low amount, am I better off just forgetting all about it? The revenue will know no better anyway?

Calahonda52

Tobecontinu wrote: »

For such a low amount, am I better off just forgetting all about it? The revenue will know no better anyway?

famous last words..
.
Depending on where you are tax resident, they will get a feed from the UK banks.

In addition, when you make a return you have to disclose foreign assets.
Lying about that on a return is not the way to go

dennyk

Were you actually resident in Ireland for tax purposes during that year? This document from Revenue (Warning: PDF) covers the matter of tax residency and split-year treatment for years where you were not resident in Ireland for the entire year. In most cases, ordinary employment income from a foreign employer that was earned during the time you weren't resident in Ireland would not be subject to Irish tax.

If you were residing in Ireland during that time but were working in the UK (e.g. commuting to NI or whatnot), that would be a different matter; in that case your earnings might be subject to Irish tax. However, there may be reliefs you can avail of, such as credits for foreign taxes paid, or the Transborder Workers' Relief.

Your best bet is to ring Revenue and ask for advice. The penalties for late filing and late payment are based on the amount of tax owed; the most you'll generally pay a 10% penalty for filing more than two months late, plus you'll pay a bit of interest (~8% APY) on any taxes owed. They may not even bother with the penalty if the amount in question isn't very large. If you only earned "10k" in the UK, even if you're talking GBP instead of EUR and you somehow don't qualify for any reliefs or foreign tax credits, you'd still likely owe very little tax, if anything at all, on that after your personal tax credits are applied, so the penalties and interest won't amount to much at all. Revenue will work with you to pay off what you owe over time if necessary; in fact, if it is a small enough amount, they'll often just deduct it from your next year's tax credits instead of asking you to pay. You're much better off getting it sorted out now than getting audited by Revenue later; they're usually willing to work with you if you're coming forward to fix the issue voluntarily, but they may not be as forgiving if they have to come after you rather than the other way around.

Tobecontinu

dennyk wrote: »

Were you actually resident in Ireland for tax purposes during that year? This document from Revenue (Warning: PDF) covers the matter of tax residency and split-year treatment for years where you were not resident in Ireland for the entire year. In most cases, ordinary employment income from a foreign employer that was earned during the time you weren't resident in Ireland would not be subject to Irish tax.

If you were residing in Ireland during that time but were working in the UK (e.g. commuting to NI or whatnot), that would be a different matter; in that case your earnings might be subject to Irish tax. However, there may be reliefs you can avail of, such as credits for foreign taxes paid, or the Transborder Workers' Relief.

Your best bet is to ring Revenue and ask for advice. The penalties for late filing and late payment are based on the amount of tax owed; the most you'll generally pay a 10% penalty for filing more than two months late, plus you'll pay a bit of interest (~8% APY) on any taxes owed. They may not even bother with the penalty if the amount in question isn't very large. If you only earned "10k" in the UK, even if you're talking GBP instead of EUR and you somehow don't qualify for any reliefs or foreign tax credits, you'd still likely owe very little tax, if anything at all, on that after your personal tax credits are applied, so the penalties and interest won't amount to much at all. Revenue will work with you to pay off what you owe over time if necessary; in fact, if it is a small enough amount, they'll often just deduct it from your next year's tax credits instead of asking you to pay. You're much better off getting it sorted out now than getting audited by Revenue later; they're usually willing to work with you if you're coming forward to fix the issue voluntarily, but they may not be as forgiving if they have to come after you rather than the other way around.

How likely are they to come after me though? I'm a very small fish.

Fred C Dobbs

If I have no taxable income in 2018, does that mean I get no refund of my medical expenses in 2018 ?

Could I hold back (for 4 years ?) the medical expenses in 2018 until I'm paying tax again ?

Tobecontinu

Calahonda52 wrote: »

famous last words..
.
Depending on where you are tax resident, they will get a feed from the UK banks.

In addition, when you make a return you have to disclose foreign assets.
Lying about that on a return is not the way to go

I got paid in cash. :O

Portsalon

Fred C Dobbs wrote: »

If I have no taxable income in 2018, does that mean I get no refund of my medical expenses in 2018 ?

Could I hold back (for 4 years ?) the medical expenses in 2018 until I'm paying tax again ?

No.

You get a tax refund for medical expenses that you paid for with your after-tax income, so if you didn't pay tax in a particular year when you incurred medical expenses, then you haven't anything to claim a refund against.

Stratvs

Fred C Dobbs wrote: »

If I have no taxable income in 2018, does that mean I get no refund of my medical expenses in 2018 ?

Could I hold back (for 4 years ?) the medical expenses in 2018 until I'm paying tax again ?

Perhaps this should be split from current thread ( which is on UK/IRL tax issues).

However to answer, if you have no net tax paid in the year then there is nothing to refund whether from medical expenses or any other credits or reliefs.

The medical expenses for 2018 should be claimed in the tax year in which they were paid or in which the care was provided ( generally will be the same year but can be overlaps if work done towards end of one year is paid early the next )

Example:-
Health expenses paid over different years
You may receive health care in one year, but pay for it the following year. In this case, you can choose to claim the relief either in the year you:
- received the care
- paid for the care.
You have an illness in December 2016 which requires treatment. Your health expenses cost €1,000 in total. You pay €700 in 2016 and the remaining €300 in 2017.

You have two options when claiming tax relief for these health expenses.

Option 1 - you can claim €1,000 for the 2016 tax year.

Option 2 - you can claim €700 for the 2016 tax year and €300 for the 2017 tax year.

You can't hold expenses for 2018 and claim them against taxable income in 2021.

akelly02

Fred C Dobbs wrote: »

If I have no taxable income in 2018, does that mean I get no refund of my medical expenses in 2018 ?

Could I hold back (for 4 years ?) the medical expenses in 2018 until I'm paying tax again ?

if you paid no tax in 2018 , you are due no tax back in 2018

Fred C Dobbs

akelly02 wrote: »

if you paid no tax in 2018 , you are due no tax back in 2018

My 2nd and final question please (and I won't trouble this thread again) ....

Can you offset medical expenses against a Capital gain (I presume not but just checking) ?

namenotavailablE

No- a medical expenses tax credit reduces tax on income, not tax on capital gains.

There is an annual exemption of €1270 which you can deduct from capital gains.