Any advice on repayment of tax that I owe to Revenue?

[foxy171]

I have recently discovered that I have being underpaying my tax.I am the only one employed and my wife receives invalidity pension which I did not know was taxable.I was also in receipt of a carers allowance on my tax credits it now turns out that I should not have been getting these tax credits.does anyone have any advice.

 

[allthedoyles]

Re: any advice

If it has only been discovered now in December , you probably will owe a lot of atx as it will be backdated to January.
However , dont worry as they will not be hard on you and they will spread what you over a number of years until it is paid in full.

Meanwhile , check and make sure you are claiming ALL tax credits that you are entitled to ....... including dependent relative ...Trade Union credit... wheelie bin charges ...health expenses ...Home improvements credit ...

Are u over 65 or do u have kids under 19 ?

 

[Sue Ellen]

It might be a good idea for you to contact your [broken link removed] and they may be able to advise on any allowances due and your best approach to the revenue matter.

 

[foxy171]

I am under 65 and have two kids under 19.if this has being going on for a while how long will revenue check back

 

[allthedoyles]

Well Revenue will only go back 4 completed tax years ... at this moment that is 2007-2006 - 2005 - 2004 .

Claim all the allowances above that you are entitled to and ensure you also claim Home Care Tax Credit. If u hav'nt been doing so , it will quickly reduce your liability

 

[foxy171]

can I claim for home care tax credit if my wife is receiving invalidity benefit?

 

[Sue Ellen]

As far as I am aware we can only claim for 4 years back but Revenue have other options.

Besides the recommendation already given above you may find www.citizensinformation.ie helpful for this type of query.

 

[allthedoyles]

can I claim for home care tax credit if my wife is receiving invalidity benefit?

Invalidity pension is taxable , so unfortunately her income probably exceeds the qualification limit

 

[mathepac]

... if this has being going on for a while how long will revenue check back

Revenue can go back as far as they like for an audit or a check - there is no statutory limit.

Well Revenue will only go back 4 completed tax years ... at this moment that is 2007-2006 - 2005 - 2004 ...

That is not true. A taxpayer can only retrospectively amend / reconcile returns for the 4 preceding tax years; Revenue can go back as far as they wish.

 

[Black Sheep]

You stated that you are in receipt of home carers tax credit.(900)
As your wife is in receipt of Invalidity Pension she should have a PAYE tax credit instead (1830)

 

[z109]

How did you come to have the two benefits in the first place? (the carers allowance and the invalidity pension). Was it something you claimed or was it something that Social Welfare suggested? Was your wife on a different benefit previously that was changed to invalidity pension?

The point I am trying to get at is that I don't understand how you got into this situation in the first place without either bad advice (from SW) or a change in circumstances.

And if SW made a mistake, it should be them talking to the revenue and not you! (Or at least they should be ponying up for their mistake!).

 

[Black Sheep]

I don't think OP has 2 SW payments. My understanding is Invalidity Pension from SW and Homecarers tax credit from revenue hence my post above

 

[z109]

I don't think OP has 2 SW payments. My understanding is Invalidity Pension from SW and Homecarers tax credit from revenue hence my post above

I understand and I agree with your point - it is well made. My point is that payments and credits don't just happen - someone has to approve them, no?

Also, my understanding is that people have been moved from, say, unemployment benefit (non-taxable) to invalidity pension (taxable) without the implications of the move explained to them.

 

[Black Sheep]

Sorry yogamhew but unemployment benefit (now jobseekers benefit) is also taxable. The first E13 per week of jobseekers benefit is not taxable but the remainder is.
By the way have you noticed that the deductions made by revenue for SW payments never match the actual amount being paid. Don't know where they get their figures from
I would always get a cert of taxable benefit received from SW and include it with P60 when doing end of year return

 

[z109]

Sorry yogamhew but unemployment benefit (now jobseekers benefit) is also taxable.

Thank you, I didn't know that, although I know that jobseekers allowance is taxable.

 

[Black Sheep]

Wrong again! Jobseekers allowance is not taxable

 

[z109]

Wrong again! Jobseekers allowance is not taxable

Ah, so one and not the other. It's a bit of a kick in the teeth that the benefit that you have paid for (through PRSI contributions) is taxable, but the one you haven't isn't!

 

[Guest110]

I submitted my tax claim forms for 2007 and 2008,they found that I had underpaid my tax credits in 2006 by 300 euro. They wiped the slate clean and did not take the money back. I dont know if they can only go back so far as to reclaim what was underpaid, but I know we can go back 4 years to submit our claims.

I underpaid my tax credits last year by 1,000 Euro and they are taking that money back over the next 2 years.

In fairness , I will never be sending in my tax credits again to make sure they dont owe me anything, I was on the winning end once, but since then I have been on the loosing end, I only do it so that I can claim medical expenses.


If the deparment was wrong with giving you benefit that you were not entitled to, they will still take it back ! It is their right, but they will do it over a period.

I would recommend anyone to check their paid tax at the end of the year, as most times from talking to other people, they always owe you, but once they pay, your tax is always sorted after that 1st claim, so I would not recommend doing it more than once.

 

[Black Sheep]

Yoganmahew Surely you didn't expect logic from revenue!!!!!!!!!!