Amending tax for previous years

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tommygirl

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I work in the public sector and was on maternity leave in April 07 and returned in Jan 08. Before going on maternity leave I was 'acting up' into a higher position and was receiving an allowance for same (which was a fixed amount). When I was on maternity leave the allowance was not paid but when I returned to work I received the back-pay for same. I was taxed at the higher rate on this whereas with maternity and unpaid leave it would have been taxed a lower rate if it was received in 2007.

The tax office advised me to request a new P60 and they would amend the tax but the payroll office advised that a P60 could not be amended as it is a statement of all earnings received in a particular year. The payroll department have given me a letter stating how much relates to 2007 tax year but said that they did not think the tax office would accept this.

Now I am in a situation that I was appointed to the higher position and received increments since 2005. Again this is counted in my earnings for 2008 but it relates to previous tax years.

Would anyone know if there is anything I can do in this situation to reduce my tax liability? Have the tax office accepted similar letters from anyone. Should I go to the bother of even requesting a letter regarding the latest increment payment?

Thanks for any advise
Tommygirl
 
tommygirl said:
I work in the public sector and was on maternity leave in April 07 and returned in Jan 08. Before going on maternity leave I was 'acting up' into a higher position and was receiving an allowance for same (which was a fixed amount). When I was on maternity leave the allowance was not paid but when I returned to work I received the back-pay for same. I was taxed at the higher rate on this whereas with maternity and unpaid leave it would have been taxed a lower rate if it was received in 2007.

The tax office advised me to request a new P60 and they would amend the tax but the payroll office advised that a P60 could not be amended as it is a statement of all earnings received in a particular year. The payroll department have given me a letter stating how much relates to 2007 tax year but said that they did not think the tax office would accept this.

Now I am in a situation that I was appointed to the higher position and received increments since 2005. Again this is counted in my earnings for 2008 but it relates to previous tax years.

Would anyone know if there is anything I can do in this situation to reduce my tax liability? Have the tax office accepted similar letters from anyone. Should I go to the bother of even requesting a letter regarding the latest increment payment?

Thanks for any advise
Tommygirl
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In regard to a P60- I am fairly sure a new P60 can be issued( The payroll department would calulate new pay and sent letter to p35 section amendind previous p35 and paying any tax/prsi due).

Once paperwork is in order to could issue new P60.

I dont think tax office will accept letter.

best route to amend 2007 P35 and issue new P60

It can be done.

If they refuse ask them to ring tax office themselves.
 
Thanks for the reply - I was told that the P60 is a legal document and it could not be amended as it states earnings actually received.
That is untrue so?
 
I'm not sure that it's wrong - it does state correctly what I received in the 2007 tax year i.e. what was paid into my account from 01 Jan 07 to 31 Dec 08.
The P60 says that '... certify that the particulars given above include the total amount of pay paid to you in the above year........'
It would be worth about 2K in my hand if there was some way around this. If I had known this I would have returned to work for even one day mid-december and then the arrears would have been paid in 2007. I tried arguing the point that I was on A/L for December therefore the arrears should have been paid then but no joy. I did not think of it being an issue when I was off (other things on my mind!)
Thanks
 
A P60 can be changed- Even if you were not their.

For example if a person as a lot of holidays untaken in 07 and never got paid them, agree with employer to include in 07 p60 even if you receive cheque in 08.

A P60 can be changed for error or even to show more accurate picture of what a person earned.

The main reason companies would be slow to issue another P60 is to do with fraud.

If your employer knows you well and you are seem as honest they should be no problem changing it even if some of money paid the following year.
 
Thanks - Public Sector so they will not go out of their way to accomodate or do anything that in their eyes is incorrect. From conversations with the payroll manager I am 100% sure that they will not be issuing a new P60. I will go into the tax office early in the new year with the letter and try to argue my case.
Tommygirl
 
This is easily sorted without the need to amend P.60. Simply ask your employer to give you a statement showing which earnings on P.60 for 2008 refer to 2007 and prior years. Tax office will deal with P.21's for all years including the additional salary in each year thus reducing you salary for 2008 but the tax figure will remain unchanged for 2008.
 
Agree with advisor.

Legally P60 can't be changed as the payment was made in that year. However, it can be re-allocated by tax office if you have proof it referred to a different period. A letter and statement should suffice for this
 
Thanks advisor & Domo - I will get a statement to hand in with the letter and will also try to get the details of the latest arrears that have been paid.
Advisor - can I ask what you mean when you say 'but the tax figure will remain unchanged for 2008'. Does that mean I still wouldn't get a refund of the tax paid on the arrears in 2008?
Thanks for all the information,
Tommygirl
 
What he means about this is that the income will be allocated to the correct year, but the tax payment stays in the year it was paid.

Therefore the income will be assessed to tax in the earlier year, but the tax refund will arise in 2008, as the income is no longer taxed in that year.
 
Thanks to all for the advise - I did as you suggested and received a cheque back from revenue.

I am curious however as I received a cheque back for approx 2/3 of the amount I was due. My P21 for 2008 stated the amount of tax overpaid. At the bottom of the statement it stated tax underpaid 2005, 2006 and 2007 and cheque for x amount being issued.

The figures did not add up and I was due more of a refund. When I queried this with the tax office, they checked and said that I would be getting another cheque in a week/10 days as it had gone to an inspector.

It was all one claim (based on a letter from my employer) so is it unusual for part of the tax to be paid and the rest to be issued at a later date?
If I had not rang the tax office would I ever be receiving the balance?

Am I just being cynical?
Thanks
Tommygirl
 
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