Form 11 - tax liability higher than expected

yellow hen

I realise I won't get specific answers here but just in case anyone can suggest an obvious answer to my question...

I've filled out my form 11 for 2020. Husbands income and paye/usc was almost identical to 2019. My income was identical. Expenses were pretty similar and yet there is a €1400 difference in my tax liability for this year compared to last year and I don't understand why. Has anyone any ideas?

yellow hen

Should add that our tax credits haven't changed.

Stratvs

If you mean 2020 liability is higher than 2019 were either/both of you on TWSS in early part of 2020 or on PUP? That was not taxed and could be responsible.

Also, check to ensure that the PAYE employee credit or Earned Income Tax Credit box is ticked on the Form 11 if either apply to your jobs/self-employments.

paul71

https://www.boards.ie/discussion/2058212680/form-11-tax-liability-higher-than-expected

Expenses? You are self-assessed for income tax purposes?

By that I mean are you self employed? If so it could be anything, you may have had capital allowances for capital items last year and the asset might be fully depreciated.

It could be that you had paid preliminary tax last year and did not for this year.

yellow hen

I'm probably the most straightforward assessment as in I earn the same amount every year. Expenses/overheads vary very little. No capital items. Paid some prelim tax but it doesn't explain the huge hike this year.

Stratvs

One thing that we often find is people forget to tick the Earned Income Tax Credit box in the allowances/reliefs section. Even if you ticked it before it has to be reentered. that's worth up to €1,650 for self-employed and may be part of the problem.

yellow hen

https://www.boards.ie/discussion/comment/118008535#Comment_118008535

rushing off to check that now........ 🤞

yellow hen

Not it either. Coincidentally when I untick that box and save it, it makes no difference to the final assessment either.

Deeec

Print out 2019 Form 11 and compare it line by line to your 2020 Form 11. This should highlight where the difference is.

Deeec

Also were either of you in receipt of PUP or wage subsidys during 2020?

yellow hen

https://www.boards.ie/discussion/comment/118008599#Comment_118008599

I can only print out the IT assessment piece at at the end but it's almost identical. Not in receipt of pup or wage subsidy either.

yellow hen

sorry my mistake, i found the line by line calculation from last year and the issue seems to be the PAYE tax credit for last year (so preumably that is my husband?). Last year it was €3437 and this year it is €1816. USC is the same. Any idea why that would be? thanks again for the help

scabo33

@yellow hen Hi there, did you ever find out the issue? I am having exact same problem