Tax changes after Illness Benefit - a mess

Hippodrome Song Owl

I recently claimed Illness Benefit for three days (€101.50), as required by my employer. I receive full pay for sick leave from my employer but I am deducted the amount due from social welfare whether it is claimed or not. Obviously the IB is not taxed so I understand adjustments are subsequently made to my tax to account for this.

However, the adjustments made to my tax credit and cut off point mean I am down money for November overall. If these tax changes remain for December then I will be down even more. I'm neither supposed to gain nor lose net income by claiming IB so it is unacceptable that I should be losing significantly and expect further loss next month too. As it stands I would have been better off just losing the €101.50 from my salary altogether.

My employer says it is entirely down to Revenue. I contacted Revenue through My Enquiries online detailing my issue, which they advise is the quickest and most efficient way. No response yet, but hopefully soon as December payroll will close early so tax adjustments need to be advised asap.

Realistically when should I expect a response from Revenue online and would I better off trying to find time to phone during their limited hours?

Hippodrome Song Owl

In case this is of any help to anyone in the future - definitely phone Revenue and don't wait on a response through My Enquiries in your online account. No response online after 10 days, only waited 15 minutes on hold today. They were extremely helpful.

The problem is the fault of the Department of Social Protection who overpaid me Illness Benefit at the time. And although I notified them of their error immediately, and I repaid them by debit card over the phone that very same day in October, they have failed to update my record. The information available to Revenue is that I received more Illness Benefit than I did so I am now paying tax on this money even though I repaid it immediately 2 months ago. And my December pay will be affected worse than November apparently.

wally1990

Illness benefit is taxable

It's taxable for paye purposes

If your claim was closed within 4 weeks the rules is the amount claimed is deducted from your standard rate cut off point and 20% of the amount against your credits to repay essentially up to 40% of the weekly amount received (which collects the PAYE element)

If the claim closed after 4 weeks the amount is annualized until the PAYE element is repaid

Your paying back the PAYE element of illness benefit because it's not taxed at sourced when received

wally1990

If the amount is incorrect, I'd contact DSP as your first starting point

Hippodrome Song Owl

If you actually read my posts you will see that I understand perfectly well that IB is taxable and that this must be collected by altering tax credit and cut off point. I claimed just 3 days but my combined Net income and IB for November are way down on my usual Net income. Now it turns out my December pay will be even worse.

Yes the amount is incorrect and yes it is the DSP who have made a mistake as I have now found out from Revenue - who were very helpful. DSP on the other hand were obnoxious despite them now making two errors - 1) an overpayment in October of which I notified them immediately and repaid immediately by debit card that day, and 2) failing to record that repayment so now I'm being taxed on money I didn't get. Incompetent.