At the time? After checking your payslips?For several months last year (2005) I paid no tax because (as I found out today) the payroll lady mistakenly put my band cut off, i.e. 28600 approx into my tax credits/tax free allowance (which I suppose should be max 3000) on the payroll system.
Obviously I knew that something was up so I told her there must be something wrong.
A tax deduction certificate perhaps? This should be issued to your employer allowing them to correctly calculate deductions based on your latest statement of tax credits.She just said she simply put the figures into the system and the system told her zero tax. She advised me to contact revenue and have them issue some certificate to the company. I did this (I assume the certificate was received).
Keeping your tax affairs up to date is ultimately your own responsibility no matter what your employer does.I let the matter drop there as from the start of this year the tax did indeed start coming out, and I also assumed I was repaying tax for the times when I didn't have to pay any.
Your accountant is best placed to advise you on settling any outstanding liabilities in the most cost effective way.This month I decided to quit and strike out on my own. So my accountant looked at my P60 from last year and instantly noticed the glaring mistake. So I'm now faced with a huge tax bill, I assume 15,000+, because of a payroll mistake in my company that I did bring to their attention.
Any advice?
Not always true. PAYE employees still have to ensure that their tax affairs are up to date and double check that Revenue and their employers have and act on all relevant info.One of the advantages of working PAYE is that it's someone elses jobs to deal with all this stuff.
(I assume the certificate was received).
One way or another it is your own responsibility to make sure that your tax affairs with Revenue and your employer are kept up to date and to take whatever steps are necessary to rectify matters if this is not the case. Just notifying Revenue and the employer and leaving it at that is not necessarily the solution. Also it's not necessarily the case that an accountant would be required in a case like this.Ok, maybe I didn't make myself clear. I did alert the company to the fact that my tax bill had gone to zero. Is it them still my responsibility to seek the services of an accountant (not every joe soap knows the ins and outs of the Irish tax/paye system believe it or not, or even that revenue cannot be trusted to sned certificates they have promised to...) even though I'm working for a reasonably sized company with a payroll function.
No. Obviously not. But it is still your responsibility to ensure your tax situation is correct. If you believe you need an accountant to do this (or potentially to save you money on your tax bill) thats a decision for you to make.Is it them still my responsibility to seek the services of an accountant
Yes - Revenue may do that especially if attempting to collect it in one go would cause the taxpayer hardship. However isn't the original poster going self employed so this may not be an option?(Open to correction here, but if it's a large bill you can't cover straight away Revenue may be open to adjust your tax cert to recoup the payments missed??? Hopefully someone with experience/knowledge of this may be able to clarify)
True. That (important) detail slipped my mind as I read through the thread, hopefully it might be of benefit to someone else (at least now that it's confirmed).However isn't the original poster going self employed so this may not be an option?
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