# Help - balancing statement



## Orga (27 Mar 2006)

Dear all,

About some things I can manage ok but I'm lost at the mo and would appreciate any help - have searched the forum but didn't find anything I could use so would love your help.
I sent in a MED1 form to revenue last year for the 2004 tax year and included all my receipts.  They wrote back looking for my P60s for the year.  I finally found them and sent them in.  Just now I got a letter,a balancing statement telling me that I under paid tax and saying that the underpayment will not be collected at this time - what does this mean?? It wasn't much underpayment a couple of hundred euro - I'm a civil servant, PAYE and never did anything other than look at my pay slip every now and again and think that the government was doing its job corectly in taking the tax from itself to give itself - so basically - what do I do now?  Ring Revenue?  Say nothing?  Send a cheque?  Look for my P60's back - they still have not come back yet - help!!

Thanks


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## Audrey (27 Mar 2006)

I'm not an expert, but my take on this is that you are not obliged now to do anything.  From the balancing statement, Revenue have realised that you underpaid tax in that year.  (It may be possible to tell from the balancing statement how the underpayment came about, which would be of interest in my opinion).  The important thing is that they are not going to collect it.  That means, IMHO, that you owe them nothing.  Do nothing.  In the case of your P60s write and  ask for them back.  I normally just send copies, so that I still have the original if they don't send the copy back.  Certainly don't worry about it.  If they're saying they will not collect the shortfall, then they won't collect the shortfall.  It might be worth keeping an eye that you're paying the correct tax each month/week in future.


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## Orga (27 Mar 2006)

Thanks Audrey, but what I'm worried about is that they say that they won't collect it at this time - does that mean I will have it hanging over me?  Will I have to pay interest or penalties in the future?  Second, how could this happen?  Surely, it's all computerised - where did it go wrong and who do I go after to make it right?

I don't have a lot so I'd like this to be sorted.


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## gnubbit (27 Mar 2006)

Hi,
I called into the tax office in person.  A really helpful guy there told me that they don't pursue underpayments of 300 and under.  I don't know if that's a hard and fast rule though.  Interestingly, they didn't deduct my underpayment from subsequent overpayments that they refunded me.

Incidentally, after unsuccessfully trying to deal with tax hassles dating back years over the phone and by email I got it all sorted really fast by going in in person.   Although I had a 2 hour wait cos I got in just before the doors closed, I can't praise the guy who dealt with me highly enough - sorted out everything in a jiffy.


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## Satanta (28 Mar 2006)

gnubbit said:
			
		

> I got it all sorted really fast by going in in person.


 
If you can't make it in in person you can get lucky with the person dealing with you by phone/e-mail. Having had similiar experiences of poor responce times etc with some of the staff I was lucky enough to stumble across an excellent member who I now annoy directly with most issues that arise. 

Turnaround time is now superb and yet to have any mistakes made once an issue is highlighted to this person.

Basically, if your lucky enough to find a helpful (and competent) member of staff its worth holding onto the e-mail address/name & number. Scary how often you can find yourself having to deal wih them.

For the OP, wouldn't always trust them 100% that you have underpaid. Make sure you do a little check that you've received every credit your due and for the correct ammount for that year..... assuming they get it right is the biggest mistake you can make.


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## Audrey (28 Mar 2006)

Orga said:
			
		

> Thanks Audrey, but what I'm worried about is that they say that they won't collect it at this time - does that mean I will have it hanging over me? Will I have to pay interest or penalties in the future? Second, how could this happen? Surely, it's all computerised - where did it go wrong and who do I go after to make it right?
> 
> I don't have a lot so I'd like this to be sorted.


Hi, I am quite sure that they will NEVER collect it.  When they say they won't collect it "this time", they really mean that they've written off this one.  If another overpayment happened in years to come, then, depending on the amount, they might collect that one (but not the one that they've now written off).  As regards how it happened, I do agree with other posters that you should call in (or phone) them.  They are actually very good over the phone, so try that one first.  But rest easy that they won't come along some day and ask you for this particular amount back.


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## davidoco (28 Mar 2006)

There are loads of reasons why you might have underpaid but without some more information it will be hard to identify. If you could post so more info we might be able to sort it out for you, info like marital status, number of weeks worked in the year by each, were there change of jobs or starting back to work after period of unemployment, any social welfare income in that year, ie unemployment benefit, disability benefit.

PS If you send in a load of years in one go for review they will collect the underpayments if there is an overpayment in another year. So you should always send in your reviews seperately. In this case the underpayment will never be collected.


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## elcato (28 Mar 2006)

Just a quick point. You never send in the receipts with the MED 1 form. They will request the receipts at a later date if you are choosen for an audit. They should have sent you back a form with your details on it for the year. Whiile this may not look like a p60 it is just as effective for any future reference. I'm guessing though that they didn't send this back to you but you still should have a copy of your P60 as it comes with a carbon copy.


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## Protocol (28 Mar 2006)

Orga,

to know if you are under or over paying tax, you MUST look at your Certificate of Tax Credits.  Thie is issued to you and to your employer in Jan/Feb.

If this is for some reason wrong, then yes, it is possible that you could be underpaying tax.

It is up to you to check your own Cert of Tax Credits.


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## gnubbit (28 Mar 2006)

davidoco said:
			
		

> PS If you send in a load of years in one go for review they will collect the underpayments if there is an overpayment in another year. So you should always send in your reviews seperately. In this case the underpayment will never be collected.



That's what I expected as I submitted several years together.  However, one got sent back with underpaid and a note saying it was deferred.  The other 2 years refunded overpayment in full with no deduction of underpayment - maybe I was just lucky.  All balancing statements were sent out separately although I submitted them all together.


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## geri (29 Mar 2006)

davidoco said:
			
		

> PS If you send in a load of years in one go for review they will collect the underpayments if there is an overpayment in another year. So you should always send in your reviews seperately. In this case the underpayment will never be collected.


 
I also sumbitted three years returns in one go.  First two had underpayments which were not collected.  Third had overpayment, total of which was refunded by cheque.  So, I don't think they collect prevoius years underpayments out of subsequent years overpayments.


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## ubiquitous (29 Mar 2006)

davidoco said:
			
		

> PS If you send in a load of years in one go for review they will collect the underpayments if there is an overpayment in another year. So you should always send in your reviews seperately. In this case the underpayment will never be collected.



I would disagree strongly with this advice. 

Revenue are fully entitled to withhold refund of overpayments for earlier years until and unless all returns for later years have been filed - in my own experience they do this on a routine basis.

The process of getting tax sorted and refunded is already tortuously slow and prone to delays etc. You will only be making the whole process worse for yourself if you drip-feed information or otherwise try to mess Revenue around.


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## davidoco (29 Mar 2006)

davidoco said:
			
		

> PS If you send in a load of years in one go for review they will collect the underpayments if there is an overpayment in another year. So you should always send in your reviews seperately. In this case the underpayment will never be collected.


 
I stand by this suggestion, hint, tip or whatever you want to call it.  

We are just regular PAYE taxpayers – where is ubiquitous getting this “without all returns have been filed for later years”  – I think you are mixing us up with the self-employed tax payer.  The self-employed get accountants they don’t look in here for advice on how to get a tax refund.


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## deem (29 Mar 2006)

Very good idea, unless you know you have an underpayment in one year, then you may not want them to refund the overpayments, they may go easy on underpayments interest etc if overpaid in prievious years?


Or is this wishful thinking?


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## ubiquitous (29 Mar 2006)

davidoco said:
			
		

> I stand by this suggestion, hint, tip or whatever you want to call it.


We shall agree to differ...


> We are just regular PAYE taxpayers – where is ubiquitous getting this “without all returns have been filed for later years”


 
From long years of experience, actually...


> I think you are mixing us up with the self-employed tax payer


. 

Not at all - where did you get that idea? This thread is entitled "Balancing Statement". Self-employed people don't get balancing statements. 



> The self-employed get accountants they don’t look in here for advice on how to get a tax refund.[/FONT]


eh?? Did I touch a raw nerve??


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## sherib (29 Mar 2006)

> Originally posted by gnubbit
> I called into the tax office in person. A really helpful guy there....


 
It's good to see those faceless people (civil and public servants) getting a bit of credit for a change. This thread has been very helpful to me since I'm in the process of sorting out years of unmade claims mainly to do with overpayments - my own fault. The advice about sending all claims together rather than piece meal makes sense.

Does anyone know the hours when a person can call in to talk to a tax official? My tax office is Lansdowne House, Sandymount (I think). Phones are only open from 9 - 1pm at present and it's hard to get through. In summary:-

(1) What are the hours tax offices are open to the public?
(2) Is it necessary to make an appointment? 
(3) Is it true that only claims for the past five years can be submitted? 

If anyone can answer these questions I'd really appreciate it.


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## gnubbit (29 Mar 2006)

sherib said:
			
		

> (1) What are the hours tax offices are open to the public?
> (2) Is it necessary to make an appointment?
> (3) Is it true that only claims for the past five years can be submitted?


I used this [broken link removed] from the revenue website.  If you put in your PPS no, it gives you the details for where to call in person.  I gather that this might differ from the office that actually handles your tax.

I didn't need to make an appointment (for PAYE stuff).  There was a huge queue as I made it in just as the doors were closing.  They staff were great, checking if people just needed a form, or to ask for something simple like statement of tax credits.  The rest of us took a ticket and waited - up to a couple of hours but it was well worth it in the end!  Maybe bring a good book? 

When I called in to the Cathedral St office (just off O'Connell St), it closed either at 4.00/4.30pm - sorry I can't be more specific.  I think they opened at 9.30 and stayed open through lunch.  

I'm not sure of the number of years' claims that can be submitted.  I know there is a limit for the Med1 (4/5yrs?) but not sure about other stuff.


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## sherib (30 Mar 2006)

> Originally posted by gnubbit
> I used this [broken link removed] from the revenue website.


Thanks a lot gnubbit - that's a great help. I never saw that link before. You're right, the time limit is now 4 years for Med1 claims so I've lost out on earlier years. 

Since underpayments were discussed earlier in this thread and I recently discovered a small underpayment for 2001, I'm wondering now if the fact I can't claim medical costs for 2001 would cancel that debt? Not much hope I suppose. I don't understand how that underpayment occurred (PAYE) since it didn't happen in later years and nothing changed before or since. 2001 was a short year so could that be the explanation?


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## geri (30 Mar 2006)

ubiquitous said:
			
		

> This thread is entitled "Balancing Statement". Self-employed people don't get balancing statements.
> 
> 
> quote]
> If a PAYE worker submitts a Form 12 for returns should they always get a balancing statement. Mr Geri submitted form 12 for the first time this year and got an assesment form back stating that he owes 28 euro and that this must be paid immediately. Does anyone know why he wouldn't have just received a balancing statement. He has e mailed the revenue with this question by no reply.


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## ubiquitous (30 Mar 2006)

geri said:
			
		

> Mr Geri submitted form 12 for the first time this year and got an assesment form back stating that he owes 28 euro and that this must be paid immediately. Does anyone know why he wouldn't have just received a balancing statement.



Presumably because the Revenue registered him under self-assessment due to the nature and/or scale of his non-PAYE income?


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## geri (30 Mar 2006)

We are both PAYE workers. We have a property for which we receive rental income.  Practically no profit.   We both split the figures 50:50 and filed two separate returns (Form 12'S).  I received Balancing statement.  He didn't.  Thats the only other source of income we have.  Should he query it further?  What's the comeback if he waits for resolution before paying the 28 euro?
Thanks for your help.


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