Tax credits.

Chaos Marine

I got a letter in the mail last week telling me that I should apply for my tax credits as after four years they expire. I processed the year for 2016 to 2019 and it looked like the tax credits combined was about 3,300K (or thereabouts) per year. Does that mean I get a lump sum of that amount back? Do I not pay that in taxes till it's used up and then start paying taxes again? Does it do absolutely nothing?




According to the 2019, I underpaid or owe four cent in taxes. I don't know how anally retentive the tax man is, will that be an issue? Will I get a fine for owing that much money or will they just take out of my next pay check?



Thanks in advance.

relax carry on

Chaos Marine wrote: »

I got a letter in the mail last week telling me that I should apply for my tax credits as after four years they expire. I processed the year for 2016 to 2019 and it looked like the tax credits combined was about 3,300K (or thereabouts) per year. Does that mean I get a lump sum of that amount back? Do I not pay that in taxes till it's used up and then start paying taxes again? Does it do absolutely nothing?




According to the 2019, I underpaid or owe four cent in taxes. I don't know how anally retentive the tax man is, will that be an issue? Will I get a fine for owing that much money or will they just take out of my next pay check?



Thanks in advance.

The 3300 figure comes from the standard tax credits nearly all PAYE employees have. They form part of the paye tax system and if everything is working correctly are used through the year to reduce the tax you'd otherwise have to pay.

The letter you received was about making sure you already had them as occasionally they aren't on record for some reason. It was also about making you aware of other tax credits/reliefs you might be entitled to. If all years balanced, (4 cents is pretty much balanced) then you paid the correct amount of tax in those years based on what credits/reliefs were on record for you.

The 4 cents aren't going to be pursued. You do realise you were dealing with a computer program and not some person gleefully rubbing their hands together at the thought of 4 cents.

stoneill

You will probably get a cheque, or if you have registered with revenue.ie and provided bank details a deposit into the bank.