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Today the tax day - revenue.

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    #392
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    Banana Republic 1 wrote: »
    Last year one could earn up to €35600 and only pay 20% tax on it minus your tax free allowance.

    On paper it would look like: €35600 (gross) - 3300 (TFA) = €32300 @20% = €6640 PAYE Tax due.

    This year I’m going to be taxed on every euro earned over €15400 at 40% because they have just slashed my 20% rate band across the abdomen.

    Jesus that's not how PAYE works. There's no such thing as tax free allowance for a start. There's standard rate band and credits.

    You can earn up to 35600 at 20%. So if you earned 35600 exactly you would owe 7120 euro. You then take your tax credits of 3300 off the 7120 euro leaving you paying €3820.

    If you've had the annual amount of PUP added to your tax credit cert just recently and you aren't in receipt of PUP right now in 2021, it's a mistake. Contact Revenue to tell them you aren't on PUP for 2021.


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    #393
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    rostalof wrote: »
    Wow, that's extremely drastic. Have you confirmed that the correct credits are set in My Account?

    No cause the revenue have gone to ground as per other posters but I just read the document. Now this is not just limited to my case and if I’ve interpreted this right it. will be on joe Duffy I’d imagine.


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    #394
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    relax carry on wrote: »
    Jesus that's not how PAYE works. There's no such thing as tax free allowance for a start. There's standard rate band and credits.

    You can earn up to 35600 at 20%. So if you earned 35600 exactly you would owe 7120 euro. You then take your tax credits of 3300 off the 7120 euro leaving you paying €3820.

    If you've had the annual amount of PUP added to your tax credit cert just recently and you aren't in receipt of PUP right now in 2021, it's a mistake. Contact Revenue to tell them you aren't on PUP for 2021.


    Tax credits/ allowance, semantics.

    The have deducted 18200 PUP from the 20% band.


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    #395
    jrosen
    Registered Users Posts: 1,629 ✭✭✭jrosen


    I’m totally lost. I expected to pay tax, in fact had put some money aside. Was open to the reduction in tax credits as an option to pay it back slowly too.

    My tax credits have been reduced by 3120 for this year on the assumption I’ll be claiming pup for the year. I’m sure I won’t be so expect that to change.
    What I don’t understand is the change in my husbands tax bands too. That I never expected. He pays the higher rate of tax.

    Just to add we had 650 of medical stuff offset already


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    #396
    Mamto5
    Registered Users Posts: 11 ✭Mamto5


    I got through to Revenue there. They told me that as my husband had the homecarers tax credit they would reducing Our SRCOP from 44300 to 26100. I told them them to separately assess us as hopefully my husband will be back working in the summer and he will be entitled to his full SRCOP and tax credits and they can tax his PUP then. When he did the figures be said oh yes you are correct that works out much better. I told him to expect a lot of calls today


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    #397
    Buddy97mm
    Registered Users Posts: 560 ✭✭✭Buddy97mm


    Banana Republic 1 wrote: »
    Tax credits/ allowance, semantics.

    Might sound like semantics, but they are completely different things, one being an allowance that is not taxable, the other being a credit to offset tax liability.

    A tax credit is worth far more than a tax allowance.


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    #398
    vandriver
    Registered Users Posts: 3,460 ✭✭✭vandriver


    Banana Republic 1 wrote: »
    Tax credits/ allowance, semantics.

    The have deducted 18200 PUP from the 20% band.
    That will be the income from pup expected for the year 2021.They have deducted it from your srcop because it's income not captured by the PAYE system.Youll thank revenue when you don't have a huge tax bill at the end of the year.


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    #399
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    Buddy97mm wrote: »
    Might sound like semantics, but they are completely different things, one being an allowance that is not taxable, the other being a credit to offset tax liability.

    A tax credit is worth far more than a tax allowance.

    Be a pendant...


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    #400
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    vandriver wrote: »
    That will be the income from pup expected for the year 2021.They have deducted it from your srcop because it's income not captured by the PAYE system.Youll thank revenue when you don't have a huge tax bill at the end of the year.

    Do you work in revenue.


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    #401
    vandriver
    Registered Users Posts: 3,460 ✭✭✭vandriver


    Banana Republic 1 wrote: »
    Do you work in revenue.

    No,just someone trying to help.


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    #402
    Buddy97mm
    Registered Users Posts: 560 ✭✭✭Buddy97mm


    Banana Republic 1 wrote: »
    Be a pendant...

    Only trying to explain how two things differ, you would be distinctly worse off if you were receiving your tax credits as tax free allowances

    A tax allowance is as different from a tax credit as..............

    a pendant is from a pedant


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    #403
    CH3OH
    Registered Users Posts: 7,264 ✭✭✭CH3OH


    vandriver wrote: »
    The pup is taxable income,it's being taxed.You receive the gross pup in your bank account,and pay the tax by a reduction in scrop and tax credits.
    If you are thinking that your wife can earn x amount tax free ,well she can..by utilizing her tax credits which is exactly what is happening here[/QUOTE


    Thanks Vandriver for replying

    I think it is now a bit clearer to me
    If her income is 15 600 20% equals 3120
    - tax credit of 3120 equals liability of 0

    so they are taking the tax credit off to allow for this 20%
    as the money is going straight to bank

    so in our case it should result in the same overall tax liability


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    #404
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    Banana Republic 1 wrote: »
    Be a pendant...

    Nope. You've demonstrated you fundamentally don't understand how the PAYE system works. If you don't understand how it works, can you even understand your own payslip.

    This is not taking away from the fact that there may be an error in including an annual figure for your 2021 PUP payments if you aren't in receipt of may PUP for 2021 or you were but it's ceased.


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    #405
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    Buddy97mm wrote: »
    Only trying to explain how two things differ, you would be distinctly worse off if you were receiving your tax credits as tax free allowances

    A tax allowance is as different from a tax credit as..............

    a pendant is from a pedant

    I was not asking about a the tax credit system, the reduction of my first rate band is my issue.


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    #406
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    relax carry on wrote: »
    Nope. You've demonstrated you fundamentally don't understand how the PAYE system works. If you don't understand how it works, can you even understand your own payslip.

    This is not taking away from the fact that there may be an error in including an annual figure for your 2021 PUP payments if you aren't in receipt of may PUP for 2021 or you were but it's ceased.

    Take your sanctimonious opinion a stick it up your arse !


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    #407
    vandriver
    Registered Users Posts: 3,460 ✭✭✭vandriver


    Banana Republic 1 wrote: »
    I was not asking about a the tax credit system, the reduction of my first rate band is my issue.

    The reduction of the 20% band is to cover the expected pup payments you may get this year.If you go off pup sometime in the year and back to employment,then your credits/scrop will need to be reallocated to your job.
    If the revenue did not do this,and you resumed employment in say July,and your new job used up all your tax credits for the year,then you'd be back on here next January complaining about a huge tax bill you weren't expecting.


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    #408
    shmeee
    Registered Users Posts: 8,637 ✭✭✭shmeee


    The DSP have sent information to the Revenue which has reduced employees tax credits. When an employee returns to work and signs off PUP the tax credits will amend accordingly as to how long an employee was claiming PUP.

    Employees now on PUP are seeing a tax credit deduction of over €3k on their Credits, while on PUP this will stay there and will then reduce to the correct amount upon ceasing PUP payment.


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    #409
    Mamto5
    Registered Users Posts: 11 ✭Mamto5


    shmeee wrote: »
    The DSP have sent information to the Revenue which has reduced employees tax credits. When an employee returns to work and signs off PUP the tax credits will amend accordingly as to how long an employee was claiming PUP.

    Employees now on PUP are seeing a tax credit deduction of over €3k on their Credits, while on PUP this will stay there and will then reduce to the correct amount upon ceasing PUP payment.
    That is no problem but married people who are jointly assessed need to double check as they are reducing the spouse who is still working SRCOP to 26100 from 44300.


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    #410
    shmeee
    Registered Users Posts: 8,637 ✭✭✭shmeee


    Mamto5 wrote: »
    That is no problem but married people who are jointly assessed need to double check as they are reducing the spouse who is still working SRCOP to 26100 from 44300.

    It knocks on alright, that's the issue.

    Try and get through to the PAYE helpline and stay on the line until you get talking to someone. Once your through, a new RPN will issue to the employer in a matter of minutes with updated tax credits and bands.


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    #411
    CorkRed93
    Registered Users Posts: 3,444 ✭✭✭CorkRed93


    Hi still not received any letter . Was this all done online through ROS? Will that be the only way to check liability ?


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    #412
    Tinkerbell4484
    Registered Users Posts: 596 ✭✭✭Tinkerbell4484


    I just got through myself there, need to wait 5 to 6 weeks for DESP to notify revenue of the pup being ceased to increase the SRCOP? Seems a long time.


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    #413
    brianomc
    Registered Users Posts: 683 ✭✭✭brianomc


    Tinkerbell4484 wrote: »
    I just got through myself there, need to wait 5 to 6 weeks for DESP to notify revenue of the pup being ceased to increase the SRCOP? Seems a long time.

    Did they say if people will revert to "normal" tax or "week 1" by any chance?


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    #414
    Tinkerbell4484
    Registered Users Posts: 596 ✭✭✭Tinkerbell4484


    If your off pup, your SRCOP will revert back and so will your tax credits from what I gather. My husband closed his pup claim on 22nd Jan,


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    #415
    collsoft
    Registered Users Posts: 253 ✭✭collsoft


    Everybody will still be on a Week 1 basis for a while yet.

    When your PUP case closes Revenue will perform a final tax calculation on the actual amount of PUP you received and reduce your annual credits by that amount.

    So while your tax credits and SRCOP will be restored, they will be reduced from a normal full year's value.

    For example, lets say you are on €350 for 10 weeks. The tax on €350 per week at 20% is €70 (€350 @ 20%).

    For 10 weeks that a total tax liability of €700 so your annual credits will be reduced by €700.

    So if you are a single person with credits of €3,300 per annum (or €63.46 per week) this would drop to €2600 (or €50 per week )

    I know Revenue are looking to see if employees will be able to return to a normal cumulative tax basis later in the year, but there is some systems development work required to make this happen.
    brianomc wrote: »
    Did they say if people will revert to "normal" tax or "week 1" by any chance?


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    #416
    Tinkerbell4484
    Registered Users Posts: 596 ✭✭✭Tinkerbell4484


    We received my husbands new TCC overnight, and he is back on cumulative.


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    #417
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    Looks like I was right all along!

    https://www.independent.ie/irish-news/covid-payment-shock-pup-recipients-will-have-to-pay-income-tax-on-the-welfare-benefit-this-year-40073162.html


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    #418
    piwyudo0fhn57b
    Closed Accounts Posts: 50 ✭✭piwyudo0fhn57b


    Site went down for me


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    #419
    Allinall
    Registered Users Posts: 6,552 ✭✭✭Allinall


    Banana Republic 1 wrote: »
    Looks like I was right all along!

    https://www.independent.ie/irish-news/covid-payment-shock-pup-recipients-will-have-to-pay-income-tax-on-the-welfare-benefit-this-year-40073162.html

    It’s no different to anyone on jobseekers who get a job during the year.


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    #420
    Tinkerbell4484
    Registered Users Posts: 596 ✭✭✭Tinkerbell4484


    Banana Republic 1 wrote: »
    Looks like I was right all along!

    https://www.independent.ie/irish-news/covid-payment-shock-pup-recipients-will-have-to-pay-income-tax-on-the-welfare-benefit-this-year-40073162.html
    Yes they are taxing it in real time this year. Once you go back to work and off pup all will revert back, minus the tax you owe from credits


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