Correcting tax credits.... what is likely Revenue response

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doogo

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I am in a bit of a quandry - was just getting 2007 tax docs together to be filed away and noticed that i'm being given tax credits for my wife (standard cut-off i'm being given is 41000, not the c.33000 it should be) - my wife had left the workforce in 2005 to train up as a teacher and the revenue had passed the credits over to me

now i know it's my bad as i should have seen this before now but how best to rectify the situation?

should i go direct to Revenue and handsup explain my situation (will they look for money going backward, and how far?) or can i tell my employer to approach revenue to look for a new tax credit cert?

if (and when) revenue do ask for the tax that is rightfully due, will they ask for a lumpsum or do they have the facility to take a little from successive pay packets (i.e. adjust credits so they get a little a month) - really don't need the extra financial pain at the moment .... mortgage is enough of a burden in itself...

thx for any advice....
 
They are 2006 SRCOP figures you are referencing but not to worry. You are entitled to the increased SRCOP. Nothing to worry about.
 
If you tax affairs are out of kilter with what they should be then it's your responsibility to deal with this and not your employer's. Just contact Revenue and explain the situation. You can ask them to collect any overpayment of tax relief on a phased basis by adjusting your tax credits downwards. Depending on the amounts involved the may facilitate such a request.
 
Married Couples (1 Income)

2006 Standard Rate Cut off Point €41,000 (income in excess of this taxed at 42%)
2007 Standard Rate Cut off Point €43,000 (top rate 41% on excess)

Married Couples (2 incomes)

2006 Standard Rate Cut off Point* €64,000
2007 Standard Rate Cut off Point** €68,000

* The max cut off point either spouse can have is €41,000.
** Subject to lower earner having at least €23,000 taxable income in own right.

If the SRCOP on your cert of credits for 07 was €41K then you paid too much tax if your income exceeded the €41K (not an issue it it did not).

If the SRCOP on your 2006 cert of credits is €41K then you got what you are entitled to subject to any other adjustments that might be required.




doogo said:
I am in a bit of a quandry - was just getting 2007 tax docs together to be filed away and noticed that i'm being given tax credits for my wife (standard cut-off i'm being given is 41000, not the c.33000 it should be) - my wife had left the workforce in 2005 to train up as a teacher and the revenue had passed the credits over to me

now i know it's my bad as i should have seen this before now but how best to rectify the situation?

should i go direct to Revenue and handsup explain my situation (will they look for money going backward, and how far?) or can i tell my employer to approach revenue to look for a new tax credit cert?

if (and when) revenue do ask for the tax that is rightfully due, will they ask for a lumpsum or do they have the facility to take a little from successive pay packets (i.e. adjust credits so they get a little a month) - really don't need the extra financial pain at the moment .... mortgage is enough of a burden in itself...

thx for any advice....
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