Carers allowance taxable - huge problem hanging over my head.

I

Ilovemydog

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I'm clueless about all things tax.

Earlier in the week I received a letter from revenue about applying for tax credits saying something you can claim back four years.

So this had me googling and reading up about tax. I think I might be in trouble and I feel so sick thinking about all this.

I found out carers allowance is taxable. I'm a carer for a neighbour and I've been on carers allowance since 2008. I'm a single person. I think when I first got carers allowance it was 208 euro a week. I think it went up to 215 euro a week and then at some stage it went down to 204 euro a week.

Around the same time as starting caring, I received a few hours work and my second income would have been about 218 euro a week. It was all above board or so I thought. It was all above board with welfare anyways.

My circumstances changed in 2011. I continued caring but I lost the other work and income. I was soon able to gain a few more hours else where. A few more hours was - 5 hours a week and income from that was and is very little.

Here I am brinking it, thinking that previous to this I should have been paying tax on the two incomes before 2011.

I'm a nervous wreck right now and feel so so sick working out rough calculations.

My combined income from 2008 to 2011 would have been about 22516 per annum.
Doing rough calculations at tax of 20% it comes up to about 4700 euro. Multiply this by about 3 years and it comes up to a little over 14000 euro. My understanding is that interest and penalties are usually charged and this is coming to be too much to bear or think about. That sum could be doubled and that sum could be doubled with interest and penalties.

Any idea how back tax like this is worked? Are personal tax credits applied in a case like this? Like single person tax credit? PAYE tax credit? This could somewhat reduce the 4700 euro somewhat and I know interest and penalties are applied but if tax credits are applied it may not be as steep. It would be tough but maybe not as steep.

The last thing I need is a large bill to be slapped in my face and especially so close to Christmas. Money is so tight for me right now. I don't earn a lot and my beloved pet dog is getting old and was recently diagnosed with arthritis so there is monthly medication for her.
 
Everyone qualifies for a personal credit it's €1,650 now was a little higher.

If you had a PAYE job you would also qualify for a PAYE Cr currently €1,650.

So the liability may not be as high as you have outlined above.
 
Joe_90 said:
Everyone qualifies for a personal credit it's €1,650 now was a little higher.

If you had a PAYE job you would also qualify for a PAYE Cr currently €1,650.

So the liability may not be as high as you have outlined above.
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I was PAYE in my last job. It's probably my only saving grace right now.

PAYE to with my current job (few hours). Current income with carers allowance included is under 15000 per annum.

I wonder how much would an appointment with a tax consultant/accountant be? Money is so so tight with me right now. Has been for the past few months too. Dipped into my overdraft a few months ago and now I can't bring the balance into the positive. There's always some expenditure on my back. Central heating system packed in and living in a cold house. I was late with my share of the ESB too - (I live at home with my mam and we split bills). Vet bill has been very recent and monthly medication and new diet will be ongoing for the dog.
 
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Ilovemydog said:
I was PAYE in my last job. It's probably my only saving grace right now.

PAYE to with my current job (few hours). Current income with carers allowance included is under 15000 per annum.

I wonder how much would an appointment with a tax consultant/accountant be? Money is so so tight with me right now. Has been for the past few months too. Dipped into my overdraft a few months ago and now I can't bring the balance into the positive. There's always some expenditure on my back. Central heating system packed in and living in a cold house. I was late with my share of the ESB too - (I live at home with my mam and we split bills). Vet bill has been very recent and monthly medication and new diet will be ongoing for the dog.
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I was reading a case in the paper lately where a man was living in Spain and claiming a disability allowance as if he was residing here. I think he was convicted in court to the tune of a fraudulent claim totaling 14 thousand euro. He was convicted and ordered to pay around 30 euro per week out of his disability payment.
You are in a better position than this gent. Your been honest and attempting to right a genuine error.
For what is worth I would make an appointment with local citizens information office or go to your local social welfare office with a person that can support you and explain your genuine mistake. You will not owe a huge amount after allowances etc and I would expect them to claw back the monies over a long period of time.Get this monkey off your back before it makes you ill. all will be ok.
 
Definitely call to a citizens info office, they will be able to advise, there should be no need to pay a tax expert to sort this out.
 
DCD said:
I was reading a case in the paper lately where a man was living in Spain and claiming a disability allowance as if he was residing here. I think he was convicted in court to the tune of a fraudulent claim totaling 14 thousand euro. He was convicted and ordered to pay around 30 euro per week out of his disability payment.
You are in a better position than this gent. Your been honest and attempting to right a genuine error.
For what is worth I would make an appointment with local citizens information office or go to your local social welfare office with a person that can support you and explain your genuine mistake. You will not owe a huge amount after allowances etc and I would expect them to claw back the monies over a long period of time.Get this monkey off your back before it makes you ill. all will be ok.
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Well everything is above board with welfare. Carers are allowed to work up to 15 hours a week. I don't know if I will be rocking the boat there.
 
You are eligible for the PAYE tax credit as well as the personal tax credit.I can't see how you'd owe any significant tax at all.
 
I never had to call into citizens information before but just checked online and there is an office in my town. I'll call in there sometime. I never throw out important papers or forms or bank statements either. There is a load of storage under my bed with loads of papers. I just need to find the time and the stomach to go routing out old payslips and p60s etc.
 
Are you absolutely sure your normal tax credits have not been amended to take account of the carers? Have you had a look at your tax credit cert.
 
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