pengaffe wrote: » Hi sorry for the long post. Recently my husband requested p21’s as part of our application for help to buy scheme. Through doing this revenue informed us that we owed nearly €6000 jointly. So as I looked into it I discovered my previous employer had not paid PAYE for me. When I asked the accountant why he said I was below the threshold for paying PAYE. I told him this wasn’t the case as I share my tax credits with my husband. He told me he wasn’t aware of this and when I asked him if he had received tax credit cert he said no, that employers don’t receive them any more. My issue is that I never came out with more money as I made an agreement on the wages I would receive into my hand and taxes were paid by employer. Revenue are now recouping the underpayment from me on top of what I’m already paying, in short they have taken away all my tax credits. Does anyone think I have any hope in fighting it?
Calahonda52 wrote: » How exactly did that come about? As for fighting the Revenue: about what? the mess is of your making
Ninthlife wrote: » Employers deduct tax and USC as per instruction from Revenue as per the P2C (tax credit cert) issued to them when you commenced employment with them. Each December they receive a new one for the coming year. If the employer never received a rax cresit cert you should've been on emergency tax. As stated though the onus is on you to ensure you are paying the correct tax so you will have no chance of arguing it
EverythingGood wrote: » Employers don't pay your taxes / PAYE, you pay via payroll, as in, you are responsible for ensuring your tax credits are up to date and that your payslip is correct.
pengaffe wrote: » Thank you for your reply. I was working part time after previously working for an employer who dodged the revenue and who I had to in turn report for not paying my PAYE and did not receive a p45 after employment ceased. In the industry I was in you agreed a wage that you go home with. Yes it is my fault for not checking a long the way as I wasn’t issued payslips. However I never came out with more money. Say for instance I agreed €300 weekly take home that would mean my gross pay would be €348, I only ever came out with €300 so my point is that the employer did not pay the PAYE.
TitianGerm wrote: » Did your employer issue you with a P60 each year? If not you need to report him. Were you paid into the bank or cash?
pengaffe wrote: » I only received the p60 this week that’s how I realised the issue. And yes I was paid in the bank every week
pengaffe wrote: » Thank you for your reply however the mess isn’t exactly my making as you put it. I was working part time after previously working for an employer who dodged the revenue and who I had to in turn report for not paying my PAYE and did not receive a p45 after employment ceased. In the industry I was in you agreed a wage that you go home with. Yes it is my fault for not checking a long the way as I wasn’t issued payslips. However I never came out with more money. Say for instance I agreed €300 weekly take home that would mean my gross pay would be €348, I only ever came out with €300 so my point is that the employer did not pay the PAYE.
ahnowbrowncow wrote: » Was it your accountant or the employer's accountant that told you the employer doesn't receive your tax credit certificate/P2C? That's incorrect and I would be wary of getting advice from them in the future. If you were being paid cash and your employer didn't notify Revenue of your employment it would seem that your employer purposefully failed to deduct tax correctly and has willfully landed you in this situation in order to avoid paying employer's PRSI. You obviously have some responsibility in this and ultimately will have to foot the bill. But I would be reporting my employer for creating this mess and because if they have haven't paid their share of PRSI on your behalf, your contribution to the social insurance fund is massively reduced and have reduced entitlements to DEASP benefits.
pengaffe wrote: » It is my ex employers accountant. He is trying to dodge responsibility by telling me that employers don’t recieve tax credit certs. I understand I will have to pay the price for it now just very frustrating when I didn’t come out with more money at the time. I was registered and my USC and PRSI was paid but because they had my incorrect tax credits it appeared I wasn’t liable to pay PAYE so it’s not underhanded just sloppy accounting and pay roll
TitianGerm wrote: » If the employer does not do the payroll it will be the accountant who does it or another payroll provider. Each year Revenue issues all employees registered under your employers number a P2C. This document is the Tax Credit Cert.https://www.revenue.ie/en/employing-people/becoming-an-employer-and-ongoing-obligations/maintaining-your-records/tax-credit-certificates-p2cs.aspx Whoever processes the payroll must make the correct deductions based off this document.
CeilingFly wrote: » This type of pay agreement is still about - usually its in more rural areas where it's small local businesses. I can see where the error is - the employer forgot or didn't hear when you told him/her you were jointly assessed and at €300 a week if you were taxed individually there'd be no personal tax or prsi or usc, just a low rate of employer prsi. If possible I'd approach the previous employer and try and get agreement from them to at least contribute to the amount owed. But it seems you were just put on standard weekly credits and any tax credit form was ignored out of probable laziness.
CeilingFly wrote: » This type of pay agreement is still about - usually its in more rural areas where it's small local businesses. I can see where the error is - the employer forgot or didn't hear when you told him/her you were jointly assessed and at €300 a week if you were taxed individually there'd be no personal tax or prsi or usc, just a low rate of employer prsi. If possible I'd approach the previous employer and try and get agreement from them to at least contribute to the amount owed. But it seems you were just put on standard weekly credits and any tax credit form was ignored out of probable laziness. I'd suggest a 50/50 agreement.
pengaffe wrote: » Do you think there’s any chance at all of revenue putting the onus on them instead of me? I’m on maternity at the moment but once I go back to work I’d like to have it sorted.
TitianGerm wrote: » If you have proof of an agreement to be paid net then none of this is your fault. Especially if you never received payslips and only got your P60 this week. Your only means to confirm payment was correct was to see the agreed €300 was lodged to your bank each week.
pengaffe wrote: » Well I absolutely have that. Thank you for your advice I’ll get on to revenue and try to sort it
TitianGerm wrote: » Might be worth giving WRC a call as well. They take a very hard line with employers not issuing correct documents and the likes of holiday pay etc.
CeilingFly wrote: » Its a tiny business run by someone the OP knows so running to cause trouble is not in any way the answer or the right way to deal with this. There was a simple error caused by laziness of not entering correct tax status. In an ideal world the OP should have checked, but many people just trust things are done properly especially when accountants are there.
TitianGerm wrote: » The OP wasn't provided with payslips or a P60 so she had no way to check. Just because it's a small business and the owner is lazy does not give them a free pass to cost the OP thousands in unpaid taxes. The employer was wrong and the employer should pick up the liability as was initially agreed to pay a net wage, if not then he should be reported and then at least he won't make the same mistake again.
Hitman3000 wrote: » You made an agreement as to what your net pay would be after tax. Did you get a pay slip? Revenue will enter an agreement with you to repay the money by if you wish reducing your tax credits for a period of time to cover the shortfall. ie cut your tax credit by a 1000 pa for 6 years.
