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What's the situation with paying the Tax back?

  • 20-06-2020 1:54pm
    #1
    Febreeze
    Closed Accounts Posts: 190 ✭✭


    While I was out of work, I was getting paid from work through the wage subidty scheme they were receiving. I wasn't receiving the covid 19 payment through welfare office (just to make it clear incase people are woundering and I also didn't apply for the covid 19 payments either). Each week I got paid, I notice I wasn't paying tax. Obviously. So I put a certain amount away each week as a tax repayment so I can give it all back. I started doing this the exact date I recieved the payment from my job which was in March.Grand. Then I heard through the grapevine that actually, my tax will just increase rather than me having to send back the total amount that I have put to the side.

    Anyone that works in this department, sector, even has a fair idea of how this works? If its the case of tax increase, is this a bad thing or would it be in my favour to ring the tax office (or if anyone knows who I can actually ring) and tell them I would like to pay it all back? Also, is there a time frame? (ie, end of the year tax or straight away)

    Anyone with an absolute clear idea of how all this works would be greatly appreciated.


Comments

  • #2
    Stratvs
    Registered Users, Registered Users 2 Posts: 958 ✭✭✭Stratvs


    Revenue have indicated that PAYE reviews will be carried out at 2020 year end. Any tax underpayments arising through untaxed but taxable payments received either the TWSS or the PUP are then expected to be collected by reducing tax credits in the following year(s). So say someone underpays €520 in 2020 it could be collected at the rate of €10pw in 2021 by increasing 2021 tax deductions. The employee would have the option of settling it in one go if they wish once the amount is ascertained at year end.


  • #3
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    Stratvs wrote: »
    Revenue have indicated that PAYE reviews will be carried out at 2020 year end. Any tax underpayments arising through untaxed but taxable payments received either the TWSS or the PUP are then expected to be collected by reducing tax credits in the following year(s). So say someone underpays €520 in 2020 it could be collected at the rate of €10pw in 2021 by increasing 2021 tax deductions. The employee would have the option of settling it in one go if they wish once the amount is ascertained at year end.

    Thank you very much for your reply. Quick and to the point. Exactly what I needed to know.

    Can I ask, would it be favourable if I settled it all in one go or would it effect me in the long run? Or would it matter if I settled it at all?

    As cheeky as it sounds, I've saved a large amount and considering my other colleagues have opted out of putting anything to the side (they honestly don't seem that phased either) and letting it get take from their wages in the future, it seems like I can put that money into my savings which I know will go towards something I am saving for anyways.

    I know it seems like a mountain from mole hill situation but I'm slightly confused as to how it works and I don't want to be penalised for doing anything wrong.


  • #4
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    Hi Mods. Can you delete this thread please?

    I've gotten the answers I needed. I think I've managed to figure out what to do.

    Thanks :-)


  • #5
    Stratvs
    Registered Users, Registered Users 2 Posts: 958 ✭✭✭Stratvs


    Febreeze wrote: »

    Can I ask, would it be favourable if I settled it all in one go or would it effect me in the long run? Or would it matter if I settled it at all?
    .

    There are generally no problems in paying PAYE underpayments from future tax credits. But when the amount is determined if you want to settle in one go I’m sure they’d be happy to take it.


  • #6
    Happy4all
    Closed Accounts Posts: 2,089 ✭✭✭Happy4all


    Stratvs wrote: »
    There are generally no problems in paying PAYE underpayments from future tax credits. But when the amount is determined if you want to settle in one go I’m sure they’d be happy to take it.

    But if your main source of income is a PAYE employment but you are taxed under self assessment rules, then you are screwed and will have to pay it back in one lump sum.


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  • #7
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    Happy4all wrote: »
    But if your main source of income is a PAYE employment but you are taxed under self assessment rules, then you are screwed and will have to pay it back in one lump sum.

    That was the one thing I was thinking of.

    Do they expect people to have the exact amount to the side that they owe when some people probably wouldn't of been to put away any? Surely they can't expect everyone to be able to ring up and say they have X amounts to pay back. I've been fortunate enough to be able to do this and would rather pay it all back if it means I won't get backlash from my wages but if its not a huge deal and could be taken from my wages then I would happily save it all for something else.


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