Collection of underpayment

Purple Mountain

I did a balancing statement online for 2019 and it shows I slightly underpaid my tax.
The outcome part says something about it won't be collected at this time.
I've rectified the issue that I won't underpay this year but how does revenue collect the underpayment?
Am I to await a bill from them in the post.
My bank account is not registered on ROS.

Mjolnir

Purple Mountain wrote: »

I did a balancing statement online for 2019 and it shows I slightly underpaid my tax.
The outcome part says something about it won't be collected at this time.
I've rectified the issue that I won't underpay this year but how does revenue collect the underpayment?
Am I to await a bill from them in the post.
My bank account is not registered on ROS.

They'll normally just take it from your wages over the tax year. Slight increase in the tax paid nothing too noticeable unless you owe an eye watering amount.

Purple Mountain

Mjolnir wrote: »

They'll normally just take it from your wages over the tax year. Slight increase in the tax paid nothing too noticeable unless you owe an eye watering amount.

Nope, less than 100e.
How will I know this is the case and I shouldn't be sending them payment?

barneystinson

If they intend to collect it they’ll say so and will indicate the amount by which they’re reducing current / future years’ tax credits.

If they say they’re not collecting it at this time, then that actually means they’re not collecting it at all.

Purple Mountain

barneystinson wrote: »

If they intend to collect it they’ll say so and will indicate the amount by which they’re reducing current / future years’ tax credits.

If they say they’re not collecting it at this time, then that actually means they’re not collecting it at all.

Jeepers, how did I strike lucky?

Mjolnir

You could ring and ask to pay it if you like, you'll see a change in the tax you pay, when you do another p21 you'll see the balance change.
Happened to me, you don't need to do a thing.
If you have the money and want to pay, by all means give them a call. I think you can do it online but not 100%.
The they won't be collecting now is a polite way of saying we won't be asking for it off ya now in one go.

Mjolnir

barneystinson wrote: »

If they intend to collect it they’ll say so and will indicate the amount by which they’re reducing current / future years’ tax credits.

If they say they’re not collecting it at this time, then that actually means they’re not collecting it at all.

No it doesn't I had that on a substantially higher than €100 under payment and they took it throughout the year.

Purple Mountain

So I don't need to act, they will deduct themselves?
I don't think I'd get through to them on the phone too readily with all the queries re CoVid adjustments etc.

Mjolnir

Purple Mountain wrote: »

So I don't need to act, they will deduct themselves?
I don't think I'd get through to them on the phone too readily with all the queries re CoVid adjustments etc.

No they're fairly good at taking what's owed to them.

The Diddakoi

Any amount over €100 is usually collected over the following years (May be spread over up to 3 years) by reducing weekly tax credits.

Amounts under €100 aren’t collected at the time, but if you claim a refund from the likes of health expenses in future years the amount owed may be deducted at that point from any refund due.

Purple Mountain wrote: »

So I don't need to act, they will deduct themselves?
I don't think I'd get through to them on the phone too readily with all the queries re CoVid adjustments etc.

relax carry on

Mjolnir wrote: »

No it doesn't I had that on a substantially higher than €100 under payment and they took it throughout the year.

Amounts over 100 euro can be collected by paying the underpayment or by reducing your credits over the following year(s) untill the underpayment is paid. Amounts under 100 euro are not automatically collected by reducing your credits. They are "not collected at this time" meaning the debt still exists. You can pay it or the next time you are due a refund, it will be offset against the debt.

spurious

Mjolnir wrote: »

No they're fairly good at taking what's owed to them.

In fairness, I have found them to be fairly efficient paying back when there has been an overpayment too.
Probably the only arm of government that works as it should do.

Purple Mountain

spurious wrote: »

In fairness, I have found them to be fairly efficient paying back when there has been an overpayment too.
Probably the only arm of government that works as it should do.

I agree on that.