Checking P60 for possible tax refund?

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candyman

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I heard recently its possible to have your P60 checked, presumably by the revenue, to see if you are entitled to any tax refund for 2005.

Has anyone actually done this and if so what are the steps? Is there a charge for this service and what documentation do you need to supply (asides from the P60 obviously ;))
 
think you have to apply for a balancing statement. As an aside, it strikes me as downright poor practice that refunds are not automatically issued.
 
The tendency of large numbers of PAYE taxpayers to "forget" to declare other sources of income to the Revenue could be described as "downright poor practice" on their part also. In that context, it would be highly irresponsible of the Revenue to issue tax refunds to people who are not entitled to receive same.
 
ubiquitous said:
The tendency of large numbers of PAYE taxpayers to "forget" to declare other sources of income to the Revenue could be described as "downright poor practice" on their part also. In that context, it would be highly irresponsible of the Revenue to issue tax refunds to people who are not entitled to receive same.
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Can't agree. Revenue should issue refunds to people if they are due them. End of story. if I overpay then i am due money back. Its not my problem if others are cheating. Why should I be tarred with the same brush?
 
Revenue should issue refunds to people if they are due them. End of story. if I overpay then i am due money back
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Agreed...and if you apply for your refund, by completing the required forms and statutory declarations (eg that you have no undeclared income), you will get your money back.

However, in the absence of such a declaration from you, the Revenue have no way of knowing whether you are entitled to a refund. In that context, imho it would be reckless of them to use public funds to issue a refund to you without any confirmation that you are entitled to receive same.
 
Revenue claim that only a small percentage of people overpay their tax each year and are thus entitled to a refund. I've been requesting a balancing statement over a number of years and only occassionally do I receive a refund. In the past I've received refunds due to changing job mid year, claiming additional tax reliefs, pension payments etc. so I don't have a problem with the system as it stands- if I feel I may be due a few bob I am happy to apply for the balancing statement and wait for a cheque to issue. No system is perfect and the sheer volume of payments and the complexities therein processed by the PAYE section alone must quite staggering.
 
ubiquitous said:
Agreed...and if you apply for your refund, by completing the required forms and statutory declarations (eg that you have no undeclared income), you will get your money back.

However, in the absence of such a declaration from you, the Revenue have no way of knowing whether you are entitled to a refund. In that context, imho it would be reckless of them to use public funds to issue a refund to you without any confirmation that you are entitled to receive same.
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At the same time, the government budget for the fact that a large amount of money which is rightfully due back to people will never be claimed. Likewise, it seems patently biased to disallow refund claims more than 4 years old when on the other side of the coin revenue can claim money owed to them for as long back as they want to.
 
It's ridiculous to say that refunds should automatically be issued by Revenue if they are due. How are Revenue to know that any individuals circumstances have changed and that they are due additional credits, reliefs or exemptions unless the person contacts them. I know Revenue have lots of ways of getting information, by I didn't realise mind-reading was one of them! ;)
 
xeresod said:
It's ridiculous to say that refunds should automatically be issued by Revenue if they are due. How are Revenue to know that any individuals circumstances have changed and that they are due additional credits, reliefs or exemptions unless the person contacts them. I know Revenue have lots of ways of getting information, by I didn't realise mind-reading was one of them! ;)
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as carpenter has said, many people end up overpaynig tax by virute of a job move mid year etc. If when you look at yoru P60 you have overpaid tax then revenue should know the same thing and repay it. I am not taking about taking account change of allowances that revenue are not aware of.
 
legend99 said:
as carpenter has said, many people end up overpaynig tax by virute of a job move mid year etc. If when you look at yoru P60 you have overpaid tax then revenue should know the same thing and repay it. I am not taking about taking account change of allowances that revenue are not aware of.
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It's not that simple, things like taxable unemployment benefit need to be taken into account.

The best thing is for anybody in this situation is to make sure they give their P45 to their new employer (or directly to Revenue if they don't want their employer to know their specifics) in order to have a cumulative cert rather than a week-1 cert issued, then check their payslip to ensure their employer is implementing it.

Like everything else prevention is better than cure, so if you can ensure you are claiming everything you're entitled to and your tax credit cert is correct, you'll avoid the headaches of dealing with Revenue :D .
 
xeresod said:
It's not that simple, things like taxable unemployment benefit need to be taken into account.
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Also changes in circumstances, non PAYE tax matters (e.g. MED1 expenses etc.). I'm sure that lots of PAYE workers lose out due to overpayment of tax/PRSI. Some because they don't know any better and don't check their payslips, P60s, P45s etc. Some (like many of my colleagues) who know that they are entitled to certain credits/allowances/refunds but don't bother claiming them.
 
ClubMan said:
Some (like many of my colleagues) who know that they are entitled to certain credits/allowances/refunds but don't bother claiming them.
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I have to say that drives me crazy!

I overheard a conversation recently, where a guy was ranting and raving about tax being too high and Revenue being a useless bunch of (use your imagination here!) when his friend asked him if he knew he could claim for refuse charges and trade union subscriptions to which he replied (and I quote exactly) "of course I know that but should I go to the trouble of filling in lots of forms". His reasoned friend then went on to say that he could claim them on the internet or by phone without the need for forms but that didn't change his opinion.

Unfortunately I've come accross too many people that are aware of the credits/reliefs available to them but just couldn't be bothered to claim them. The mind boggles at some peoples logic! It's just a pity that you can't claim other peoples credits if they don't want them!!!
 
I keep telling my colleagues what they're entitled to (and, in some cases such as our ESPP/ESOP, what they're liable for), alerting them to mistakes on payroll etc. if/when they arise and so on but they don't seem to take much notice. I don't mind telling them. I don't even mind them ignoring my suggestions/advice. I do mind them doing this and then moaning about rip-off Ireland and allegedly high taxes though.
 
Hi Folks
On a sort of related topic though - we submitted our 2004 form 12 in time for Oct 31st this year, revenue went through it and said we owed money (despite the fact that we are paye and were really submitting the form to get our medical expenses; refuse and pension contributions taken into account). We queried this and also queried it with our payroll in case they had been underdeducting over the course of the year. Turns out that 2004 was a 54 payweek year and that in the assessment revenue should have increased our tax credits etc to take this into account!! It just goes to show that you have to watch everything carefully as I would have assumed that the Revenue would know to take this into account.
By the way this isn't just me that is affected by this - someone else I know had the same problem!
 
Turns out that 2004 was a 54 payweek year and that in the assessment revenue should have increased our tax credits etc to take this into account!!
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This is incorrect. Revenue have no formal powers to increase one's tax credits in this way as tax credits are set out on an annualised basis in every year's Finance Act. However, as a concession, and to prevent all sorts of hassle and argy bargy, the Revenue agreed in individual cases to informally increase tax credits by 2/54 weeks for 2004 - only for PAYE "customers" who complained. (The legality of these actions is another matter entirely). Needless to say, this concession was not available to the self-assessment sector who file the majority of tax returns annually and who are increasingly treated like lepers in the operation of our tax system.
 
ubiquitous said:
Needless to say, this concession was not available to the self-assessment sector who file the majority of tax returns annually and who are increasingly treated like lepers in the operation of our tax system.
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How exactly are they treated like lepers?
 
candyman said:
I heard recently its possible to have your P60 checked, presumably by the revenue, to see if you are entitled to any tax refund for 2005.

Has anyone actually done this and if so what are the steps? Is there a charge for this service and what documentation do you need to supply (asides from the P60 obviously ;))
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Hey Candyman,

I do this every January and find I am usually due something back - generally thanks to new employers who takes weeks to sort out tax even if handed your last P45 on your first day at work! The easiest way to go about it is just to send a copy of your P60 along with a letter to the effect of "Can you please review my tax for 2005 and issue a refund if applicable" to your district's tax office* and mark it for the attention of the Inspector of Taxes. They will send on a cheque if you're due it and a balancing statement.

There is no need to send your original P60 unless they come back to you & request it. It is hassle-free [in my experience] and only takes a couple of weeks to get sorted :)

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* Maybe they all go to Grattan House, Lower Mount St., Dublin 2..? You can double check the details for your tax district at www.revenue.ie through the "Contact Details" link.
 
hjrdee said:
How exactly are they treated like lepers?
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As this is going off-topic I'll be brief and give three examples:

1. non-availibilty of PAYE credit, worth €1,490 to paye employees in 2006.

2. non-availibility of tax-free motor or subsistence rates up to max. civil service rates that are available to both paye employees and company directors.

3. poor service and lack of flexibility from Revenue in relation to issues such as that outlined above.
 
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