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Today the tax day - revenue.

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    #362
    mystic86
    Registered Users Posts: 2,983 ✭✭✭mystic86


    chrabo wrote: »
    I got mine today.
    2.5 months on pup and all my tax credits gone??. have 0 tax credit for 2020, time for social welfare full time

    You have something very mixed up here, as reduction of your credits for any tax due from your PUP payments will not be implemented until next year. As for 2020, your tax credits for 2020 are not affected at all.


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    #363
    Tinkerbell4484
    Registered Users Posts: 596 ✭✭✭Tinkerbell4484


    I'm very confused by how all this is working out.
    For the past 3 weeks my husband (full time working) has been paying over €300 per week tax. He was on pup for a few months last year, around 5, I have been on it on the rate of €300, since September. He had an underpayment of €1600 on his statement of liability, thats fine not disputing there is tax owed.
    My problem is,his tax credits have been reduced to 1440 I am still on pup,and his rate band has reduced from €44300 to €10000.
    We were not given the option to pay the underpayment, or anything, his employer was issued a new TCC and his income is now less then halved. I've submitted enquiries to revenue but noone is replying or contacting.
    Can anyone shed light on my the tax credit band would be reduced so much? Our normal credits are just over €6000pa.


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    #364
    Mamto5
    Registered Users Posts: 11 ✭Mamto5


    This has happened to me and my husband also. He has not been awarded a SRCOP for 2021 so they have reduced mine. I have sent a message through my enquiries but will be ringing first thing Monday morning. It seems very unfair as if they are taxing him on social welfare he should a SRCOP and they should not reduce mine. I will be asking to be assessed separately as that way I can earn 32k at 20 %. I am hoping someone in the Revenue has made a mistake it wouldn’t be the first time


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    #365
    jrosen
    Registered Users Posts: 1,629 ✭✭✭jrosen


    Revenue have taken away all my tax credits for this year because im on PUP. I did contact and they said that would change if I return to work. But hubby received notification that he will also loose tax credits even though he didnt receive any social welfare payment. I dont understand. We are jointly assessed.


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    #366
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    Logged onto revenue this morning and at first glance I took away the following:

    They have deducted the PUP from my 20% rate band limit, €353600, under the assumption that the PUP was implace fro 12 months, Jan 2020 to Dec 2020, so now in 2021 I’ll be paying the top rate of income tax when I earn more €15400

    My understanding of PAYE system is you can earn up to €35600 and only pay 20% tax on that minus whatever tax free allowance you have.

    They now just penalising the people who were forced on to PUP.


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    #367
    mystic86
    Registered Users Posts: 2,983 ✭✭✭mystic86


    Banana Republic 1 wrote: »
    They now just penalising the people who were forced on to PUP.

    Why do people make statements like this? The payment is taxable, like many other payments from SW. They are collecting the tax. Wowzer, shock horror.


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    #368
    brianomc
    Registered Users Posts: 683 ✭✭✭brianomc


    I presume these tax credit/standard rate reductions are 2021 related and not 2020.

    I overpaid tax in 2020 and have had mine reduced this year and put on week 1, I am currently on PUP. This means if I did go back to work now and didn't cancel the PUP that I would be paying huge amounts on what I earn and my tax on the PUP would be covered by the reduction. So at the end of 2021 there wouldn't be any rebalancing needed. And if there was then its a case that Revenue have already collected this money instead of them having to recoup it over 4 years leaving a hole in their pockets in the short term.

    Of course when I do cancel the PUP I presume they will make a final calculation of PUP paid from social welfare and then re-issue me with a new tax credit certificate with these payments factored in.

    I'm not sure why they have reduced the working spouses tax credit/standard rate above what was needed for a single person, but I'm sure there is a good reason that I am just not getting right now.


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    #369
    Tinkerbell4484
    Registered Users Posts: 596 ✭✭✭Tinkerbell4484


    For some reason though from what I've gathered by calculating it, they've reduced our SRCOP by both myself and my husband aiming pup for 2021 (650×52=33800) so our SRCOP is now 10600. My husband is not on pup anymore though so I don't know why they have done that. So all his income per week above 200 is taxed at 40% with nearly no tax credits.
    He was on it for 20 weeks last year


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    #370
    Tow
    Registered Users Posts: 6,727 ✭✭✭Tow


    Tinkerbell4484 wrote: »
    For some reason though from what I've gathered by calculating it, they've reduced our SRCOP by both myself and my husband aiming pup for 2021 (650×52=33800) so our SRCOP is now 10600.

    You are correct, once you are on PUP Revenue will assume you are going to be on it all year. So they multiple your weekly PUP by 52 and tax it by adjusting your RPN accordingly. Leaving aside the rights/wrongs of this approach. One you return to employment DEASP notify Revenue. However, this only happens once a week, so you may be working 2/3 weeks before seeing RPNs return back to (near) normal.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



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    #371
    Mamto5
    Registered Users Posts: 11 ✭Mamto5


    The Revenues own website states that payment if any taxes due on the PUP will not commence until January 22 over 4 years they specifically state that it is not taxed in real time. This is very underhanded of them to send out new tax credits over the weekend with no prior notification. Some people will be in for a shock on their next pay day when they realise how much money they will be down.


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    #372
    Cash_Q
    Registered Users Posts: 1,920 ✭✭✭Cash_Q


    Any ideas on editing/deleting the Statement of Liability... my husband was on TWSS for a few months last year, his employment detail summary reflects this and the figures are exactly correct.

    I am the assessable spouse so he cannot access the Statement of Liabilty. I edited it a few weeks ago to include medical expenses for 2020 and I cannot proceed further because it has pre populated the TWSS for my husband as 0.00 when its should show a figure in excess of 5k.

    I have sent an enquiry but no response yet. If I click 'delete' on this Statement of Liabilty will it give me the option to request it again, with the hope that the TWSS figures will be correct? I started it before his employer had submitted the figures to Revenue and I wonder if that's why it said 0.00 to begin with..

    Tldr: can I delete the Statement of Liabilty and start over, or will it be gone altogether/what happens if I delete it?


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    #373
    Nigzcurran
    Registered Users Posts: 2,719 ✭✭✭Nigzcurran


    Cash_Q wrote: »
    Any ideas on editing/deleting the Statement of Liability... my husband was on TWSS for a few months last year, his employment detail summary reflects this and the figures are exactly correct.

    I am the assessable spouse so he cannot access the Statement of Liabilty. I edited it a few weeks ago to include medical expenses for 2020 and I cannot proceed further because it has pre populated the TWSS for my husband as 0.00 when its should show a figure in excess of 5k.

    I have sent an enquiry but no response yet. If I click 'delete' on this Statement of Liabilty will it give me the option to request it again, with the hope that the TWSS figures will be correct? I started it before his employer had submitted the figures to Revenue and I wonder if that's why it said 0.00 to begin with..

    Tldr: can I delete the Statement of Liabilty and start over, or will it be gone altogether/what happens if I delete it?

    Send a message through your enquiries and they can issue a new one


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    #374
    vandriver
    Registered Users Posts: 3,460 ✭✭✭vandriver


    Mamto5 wrote: »
    The Revenues own website states that payment if any taxes due on the PUP will not commence until January 22 over 4 years they specifically state that it is not taxed in real time. This is very underhanded of them to send out new tax credits over the weekend with no prior notification. Some people will be in for a shock on their next pay day when they realise how much money they will be down.
    That's for underpayment of 2020 tax on pup.
    The reduction of tax credits for 2021 is to ensure that this year's pup is taxed this year.


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    #375
    ari101
    Registered Users Posts: 2,835 ✭✭✭ari101


    Cash_Q wrote: »
    Tldr: can I delete the Statement of Liabilty and start over, or will it be gone altogether/what happens if I delete it?

    I started and then ended up deleting mine a couple of weeks back and it seem to start over fine (I haven't submitted my final but it let me click through no issues, just removed any inputs I had made)


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    #376
    cyc1337
    Registered Users Posts: 8 ✭cyc1337


    mystic86 wrote: »
    Why do people make statements like this? The payment is taxable, like many other payments from SW. They are collecting the tax. Wowzer, shock horror.

    because it's the government who took away these peoples' jobs and income.


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    #377
    Patches oHoulihan
    Registered Users Posts: 107 ✭✭Patches oHoulihan


    Mamto5 wrote: »
    The Revenues own website states that payment if any taxes due on the PUP will not commence until January 22 over 4 years they specifically state that it is not taxed in real time. This is very underhanded of them to send out new tax credits over the weekend with no prior notification. Some people will be in for a shock on their next pay day when they realise how much money they will be down.


    I just looked at mine and my rate of 40% starts at 50k now instead of 70.
    My wife has been on PUP for 9 months last year. I take half her tax credits as she only ever did a couple of days a week.

    So I calc my tax bill will be up by 320€ a month.
    WTF is that about its her tax bill not mine. Why am I paying her tax and not her when she goes back?

    I'm totally confused


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    #378
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    mystic86 wrote: »
    Why do people make statements like this? The payment is taxable, like many other payments from SW. They are collecting the tax. Wowzer, shock horror.


    Understand the PAYE system first before you get on your high horse, Jesus H and Joseph Stalin.


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    #379
    jrosen
    Registered Users Posts: 1,629 ✭✭✭jrosen


    Patches oHoulihan wrote: »
    I just looked at mine and my rate of 40% starts at 50k now instead of 70.
    My wife has been on PUP for 9 months last year. I take half her tax credits as she only ever did a couple of days a week.

    So I calc my tax bill will be up by 320€ a month.
    WTF is that about its her tax bill not mine. Why am I paying her tax and not her when she goes back?

    I'm totally confused

    Exactly the same here.
    I work part time obviously pay the lower rate of tax and was on pup for approx 5months. I don’t understand either?!


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    #380
    smellyoldboot
    Banned (with Prison Access) Posts: 1,075 ✭✭✭smellyoldboot


    The greatest hoodwink/scam that was ever pulled in this country. Literally a transfer of wealth by stealth from the working population of Ireland to its very richest. We worked for free/at very little cost to our employers and now we must repay hefty tax bills for that privilege while the now even wealthier employers get to boast about how we'll their figures are holding up "in spite of everything". We're all in this together.


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    #381
    Cash_Q
    Registered Users Posts: 1,920 ✭✭✭Cash_Q


    Nigzcurran wrote:
    Send a message through your enquiries and they can issue a new one


    Have done weeks ago and no response, nobody answering phones either


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    #382
    CH3OH
    Registered Users Posts: 7,277 ✭✭✭CH3OH


    Patches oHoulihan wrote: »
    I just looked at mine and my rate of 40% starts at 50k now instead of 70.
    My wife has been on PUP for 9 months last year. I take half her tax credits as she only ever did a couple of days a week.

    So I calc my tax bill will be up by 320€ a month.
    WTF is that about its her tax bill not mine. Why am I paying her tax and not her when she goes back?

    I'm totally confused
    jrosen wrote: »
    Exactly the same here.
    I work part time obviously pay the lower rate of tax and was on pup for approx 5months. I don’t understand either?!

    We are in the same position.
    Completed my 2020 return last week There was a liability of underpayment due to PUP etc. BUT this was ofset by medical , education and dental bill.
    So I received a small refund promptly.
    So at the moment our PAYE is up to date 2020.

    But this week we we received amended tax certs. reduction in tax credit of €3120 and 20% band reduced by €14923.

    My wife is currently on PUP and receiving €300 per week

    I am no expert.
    I understand that the PUP is classed at taxable income, but my wife's income will not exceed 15,600 even if she was to remain on PUP for 2021. If she returns to work she will earn similar to the PUP payment, so her gross income for the year will still probably be around €15600.

    I thought that as such she will not have any tax liability on it .

    Am I wrong?

    Revenue seem to have taken the view that her PUP payment is all taxable . and is looking for 20% of the 15600 during th year

    Is this correct?
    Appreciate any info


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    #383
    vandriver
    Registered Users Posts: 3,460 ✭✭✭vandriver


    CH3OH wrote: »
    We are in the same position.
    Completed my 2020 return last week There was a liability of underpayment due to PUP etc. BUT this was ofset by medical , education and dental bill.
    So I received a small refund promptly.
    So at the moment our PAYE is up to date 2020.

    But this week we we received amended tax certs. reduction in tax credit of €3120 and 20% band reduced by €14923.

    My wife is currently on PUP and receiving €300 per week

    I am no expert.
    I understand that the PUP is classed at taxable income, but my wife's income will not exceed 15,600 even if she was to remain on PUP for 2021. If she returns to work she will earn similar to the PUP payment, so her gross income for the year will still probably be around €15600.

    I thought that as such she will not have any tax liability on it .

    Am I wrong?

    Revenue seem to have taken the view that her PUP payment is all taxable . and is looking for 20% of the 15600 during th year

    Is this correct?
    Appreciate any info
    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


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    #384
    Foweva Awone
    Registered Users Posts: 1,740 ✭✭✭Foweva Awone


    Patches oHoulihan wrote: »
    I just looked at mine and my rate of 40% starts at 50k now instead of 70.
    My wife has been on PUP for 9 months last year. I take half her tax credits as she only ever did a couple of days a week.

    So I calc my tax bill will be up by 320€ a month.
    WTF is that about its her tax bill not mine. Why am I paying her tax and not her when she goes back?

    I'm totally confused

    You voluntarily chose to be jointly assessed. You can't do that and take her tax credits when it suits you, but then be annoyed when you're jointly liable and it affects you negatively.

    "For better for worse"...!


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    #385
    rostalof
    Registered Users Posts: 330 ✭✭rostalof


    Patches oHoulihan wrote: »
    I just looked at mine and my rate of 40% starts at 50k now instead of 70.
    My wife has been on PUP for 9 months last year. I take half her tax credits as she only ever did a couple of days a week.

    So I calc my tax bill will be up by 320€ a month.
    WTF is that about its her tax bill not mine. Why am I paying her tax and not her when she goes back?

    I'm totally confused

    I'm confused too. How was your rate band €70,000 and not €44,300?

    https://www.revenue.ie/en/jobs-and-pensions/calculating-your-income-tax/what-is-an-increased-rate-band.aspx

    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx


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    #386
    Tinkerbell4484
    Registered Users Posts: 596 ✭✭✭Tinkerbell4484


    rostalof wrote: »
    I'm confused too. How was your rate band €70,000 and not €44,300?

    https://www.revenue.ie/en/jobs-and-pensions/calculating-your-income-tax/what-is-an-increased-rate-band.aspx

    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

    Because her income was over 26300 they are jointly assessed and got the higher increase of 28300? (I think)


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    #387
    Patches oHoulihan
    Registered Users Posts: 107 ✭✭Patches oHoulihan


    Tinkerbell4484 wrote: »
    Because her income was over 26300 they are jointly assessed and got the higher increase of 28300? (I think)

    Her 2019 Income was €14951 ( Gross)
    Her 2020 Income was € 5666 before pup commenced

    2019 would have been about normal as she is not full time.


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    #388
    Banana Republic 1
    Registered Users Posts: 3,328 ✭✭✭Banana Republic 1


    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

    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.


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    #389
    rostalof
    Registered Users Posts: 330 ✭✭rostalof


    Patches oHoulihan wrote: »
    Her 2019 Income was €14951 ( Gross)
    Her 2020 Income was € 5666 before pup commenced

    2019 would have been about normal as she is not full time.

    Ok, I get that but I still don't understand how previously you were paying 20% tax on your earnings up to €70,000. What rate of tax was your wife paying in 2019 for example?

    €44,300 is the upper limit. So the spouse earning the higher income of the two can earn up to this amount at 20%, anything above this is 40%.

    The lower earning spouse can earn up to a maximum of €26,300 at 20%, anything above that is taxed at 40%

    You can transfer or divide credits between both spouses as you see fit, but you can't transfer rate bands. As a couple your combined rate band could potentially be €70,600, if your wife earned €26,300. Unless you have some other credits, reliefs or allowances that you haven't mentioned, you should be taxed at 40% on everything you earn above €44,300.


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    #390
    rostalof
    Registered Users Posts: 330 ✭✭rostalof


    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.

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


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    #391
    vandriver
    Registered Users Posts: 3,460 ✭✭✭vandriver


    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.

    You don't know how tax works.Literally everything in your first two sentences are incorrect.
    You are also conveniently ignoring the pup landing in your bank account every Tuesday untaxed.


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