Tax Calculation Thread

Donutz · 01-09-2022 10:37pm

Just another few quick things i wanted to ask if somebody might know the answers.

My wife isn't a PAYE worker so hasn't a tax band. Am I correct in thinking that whatever she gets from her carers allowance in a year reduces my lower tax band threshold by the same amount? I take it that she is not entitled to her own tax band.

Also they gave my wife 1700 tax credits presumably because my wife is now earning an income, but then took away 3648.40 tax credits because of the carers allowance. Does anybody know the reason behind this?

Thanks to everybody for their responses. I'm a bit dim when it comes to all this taxation.

Lord TSC · 09-10-2022 11:58am

Quick question about preliminary tax.

I'm declaring losses this year for my business for the first time (Covid and Brexit were real bastards).

Given my tax liabilities are 0 as a result of that (if I've done my calculations correctly), can I say my preliminary tax would also be 0? Given the rule is (re-quoting above) "You pay 90% of the current year, 100% of the previous year, or 105% of the pre-preceeding year. Pick whichever one is most advantageous.", the reality is two of those numbers would both be 0 for me :/

SureYWouldntYa · 09-10-2022 8:46pm

Yes, your preliminary tax requirement would be zero, no requirement to pay anything

tmh106 · 10-10-2022 10:54am

For a PAYE worker, what is the deadline for doing return for 2021 (I have a small amount of US dividend income from 2021 to declare). The date on the Revenue website is 31st October, but in previous years I thought this was extended into mid-November if you did the return electronically via My Account. However I can find no information on the Revenue website of this extension for electronic filing. Is anyone able to confirm if I am correct? Thanks.

SureYWouldntYa · 10-10-2022 11:42am

https://www.boards.ie/discussion/comment/119724981#Comment_119724981

You're right. The deadline is October 31st, but there is an extension if filing and paying online, this year it is to Nov 16th

I assume it's done like this as 20 years ago they probably wanted to incentivise online returns, although most would be done online now

See below from Revenue

https://www.revenue.ie/en/tax-professionals/ebrief/2022/no-0882022.aspx

tmh106 · 10-10-2022 4:58pm

Thanks @SureYWouldntYa . I did see find that page on the Revenue website, but what made me a little unsure is it references ROS customers whereas I am a My Account customer. My understanding is ROS is more for business owners/self assessed whereas My Account is for PAYE who may have some non PAYE income to declare. But I expect I am overthinking it and the date applies to returns done through either ROS or My Account.

SureYWouldntYa · 11-10-2022 9:31am

I can only imagine the deadline is the same, they perhaps haven't stated the deadline is the same whether filing a Form 12 through My Account or a Form 11 through ROS as there is probably so few who file anything via My Account other than basic PAYE info and medical expenses

limos · 20-10-2022 12:05pm

A quick question if any one can help, I have had my tax rate band reduced by my wife’s carers allowance and she was given 1700 credit, would it be better to swap to the increased tax rate band for a married couple, as I am down from 45k at 20% to 28k everything else is at 40%

limos · 20-10-2022 12:20pm

I have been having the same problem my wife got an increase in august then I got stung and ended up with no wages one week due to no communication between revenue workers, do you know if its better to use the increased rate of tax and not claim the home carers rate as my 20% tax band has been reduced to 28k, i cannot find any where that tells me which would be better, i emailed revenue they said to leave it until next year and then decide.

John Divney · 27-10-2022 6:52pm

My wife is trying to file her PAYE for 2019 to claim an overpayment. We are joint assessed on rental income from a property she shares with her siblings. It has been declared and taxed on a form 11 for 2019. On her My Account PAYE, it's prompting her to declare this rental income for 2019 (as it was on record). Should she declare and file even if it's been declared on a form 11? Will this effect her liability for 2019?

SureYWouldntYa · 28-10-2022 2:47pm

https://www.boards.ie/discussion/comment/119801351#Comment_119801351

The Form 11 that was filed for 2019, does this contain only the income in relation to the rental income? Is the PAYE income not included on this?

She should amend the Form 11 that was submitted in 2019 to reflect both the PAYE and rental income, that is what would be correct. I can't say if overall there will still be an under or over payment.

John Divney · 28-10-2022 4:20pm

https://www.boards.ie/discussion/comment/119804715#Comment_119804715

Thanks for replying. Yes it was a joint assessment form 11 with both PAYE Incomes itemised. It was done by an accountant for that year. It got a tax clearance number.

In her My Account to file the PAYE for the year it also has the wrong rental income number pre populated (which can be changed). Waiting on revenue to reply to my enquiry but who knows when that will happen. It seems weird to declare it twice, considering that's the whole point of the Form 11.

relax carry on · 29-10-2022 12:01am

https://www.boards.ie/discussion/comment/119805055#Comment_119805055

I don't see how she can file a PAYE return via MyAccount when you've already filed a jointly assessed form 11 for both of you for the same year? That shouldn't be possible. You should be getting an error message telling you you or your spouse were registered for it in the year.

John Divney · 29-10-2022 12:34am

https://www.boards.ie/discussion/comment/119806848#Comment_119806848

Revenue sent a letter about an overpayment on the PAYE account for 2019 and that is must be claimed this year or it can't be claimed. (But to claim it must be done on my account, I believe this was recently introduced).

relax carry on · 29-10-2022 10:50am

https://www.boards.ie/discussion/comment/119806915#Comment_119806915

Then Revenue don't have her registered for income tax in 2019. You can only file via MyAccount if you aren't registered for income tax or jointly assessed with someone who is. So who was registered for income tax in 2019 and who was the assessable spouse on the form 11? You'll need to speak with Revenue to figure out what their records show for 2019.

John Divney · 29-10-2022 8:47pm

https://www.boards.ie/discussion/comment/119807552#Comment_119807552

She is registered, it's there in My Account->Review your Taxes 2018-2021, her PAYE income for the past 4 years. It said overpayment for 2019, and to claim overpayment you must request a statement of liability.. When I go into that it shows her PAYE income and then says that the rental income for 2019 is on record, and asks to enter that aswell. Since it's already been done on a form 11, I don't know if I put the rental income in, will it be taxed as new?

Is the 31st the deadline to claim this for 2019 or is it the end of the calendar year (for PAYE overpayment)

relax carry on · 29-10-2022 10:13pm

https://www.boards.ie/discussion/comment/119809739#Comment_119809739

That's literally not the way it works. If she has an active income tax registration for 2019 and has filed a form 11 for 2019 where she received a notice of assessment as the assessable spouse then she shouldn't be able to file another tax return under PAYE for 2019 via her Revenue MyAccount. If she can login to her revenue MyAccount and see the information you say; it means that whatever form 11 she filed isn't linked to her 2019 record. Contact Revenue to see why that is before you do anything else. The 31st deadline is not an issue in your circumstances.

John Divney · 30-10-2022 4:19pm

https://www.boards.ie/discussion/comment/119810229#Comment_119810229

Sorry, I should have made it clear the Form 11 was jointly assessed under my account, she didn't file it. The accountant did.

relax carry on · 30-10-2022 10:44pm

https://www.boards.ie/discussion/comment/119812239#Comment_119812239

Then the accountant made an error with who was the assessable spouse in the year it sounds. If you were set up as jointly assessed on Revenues systems, the system would pick up that one spouse had an active income tax registration in the year and wouldn't allow the other spouse to file a PAYE return. It would give and error message. Time to contact Revenue and find out what their records show for 2019 for both of you as it sounds like you have already filed a Joint assessment return but your spouse's records don't reflect that.

glut22 · 16-11-2022 9:45pm

Hi there would really appreciate clarity on capital gains tax. If a house is bought (for example) at 200k and sold at 300k but the seller paid 20k in mortgage interest over the time owning it, is the profit for cgt 100k or 80k?

I.e. is mortgage interest deducted. Thanks

relax carry on · 17-11-2022 10:16am

https://www.boards.ie/discussion/comment/119883301#Comment_119883301

No

Geuze · 30-12-2022 3:08am

https://www.boards.ie/discussion/comment/119883301#Comment_119883301

Mortgage is completely irrelevant to CGT.

There are other allowable deductions, e.g. buying and selling costs.

dickface · 05-01-2023 9:31pm

Stupid question incoming.

Can we claim working from home relief on the government electricity credits or just the money we actually paid ourselves ?

ari101 · 05-01-2023 10:17pm

https://www.boards.ie/discussion/comment/120070971#Comment_120070971

Just the amount paid - when you upload bills it asks you to input amounts paid in the year.

banie01 · 11-01-2023 9:40pm

Quick question that I'm looking for a steer on. Due to Ill health I've retired early and I'm on the cusp of drawing down my pension. Will likely take the full amount in cash rather than buying an annuity.

I know I've got the 25% tax free and I'm due tax at marginal rate on the remainder. Is there any other allowance or tax reduction I can avail of to drop the balance of the tax owed?

Curreently taxed as a married couple with my credits allocated to the Mrs as I finished up and was placed on Invalidity Pension a couple of years ago.

Any steer would be appreciated.

Sono Topolino · 11-01-2023 10:18pm

https://www.boards.ie/discussion/comment/120096056#Comment_120096056

If you don’t need the full cash now, ARF the remainder. The ARF can keep 50% of the value of the fund in cash with the remainder invested in a portfolio of assets. Transferring your pension into an ARF is tax free and you will likely need some of those funds in future years. Drawdowns from the ARF will be taxed as normal. Also whatever remains in the ARF will form part of your estate on death - i.e. your surviving family can inherit it.

Sono Topolino · 12-01-2023 7:03pm

https://www.boards.ie/discussion/comment/120071226#Comment_120071226

Correct - however you don't actually need to upload any bills to get a figure. You can just include an aggregate number for each category and keep the records for 5 years in case you get audited. The chances of them opening a Revenue compliance intervention over a few hundred quid is, however, negligible.