Do PAYE workers actually pay extra 21% owed on savings?

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noggy1810

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Assuming you are a PAYE worker and paying tax at 41%, and you have money on deposit earning interest with 20% DIRT being taken at source, are people as a rule paying the extra 21% owed on this interest earned?
 
That extra only applies to non-resident accounts....

a normal paye worker only pays 20% no matter what their income tax rate...
 
and to confuse matters more the interest/dividend on cu shares appears to be open to whether you have to pay the difference. I thought that when Charlie was minister for finance he negotiated with the credit unions for a 'level playing pitch' as regards to taxation/dirt. anyone who agreed to pay 20% at source was not required to pay the the 41% but anyone who didn't was liable for it. If you look at a tax form you will see the revenue have a secion for untaxed interest and they include credits unions n this section. which is confusing/misleading to say the least, especally for people who have already paid the 20% and might include the net figure in this return, unaware perhaps that they have already had tax at 20% deducted.
 
I believe the extra 20% tax is still due even if you opt for dividends instead of cash???
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That's not my understanding but I could be wrong. AFAIK you pay tax only upon selling shares.
 
My understanding is that you are taxed as if you had physically taken possession of the dividend payment as income and purchased the shares yourself. So no special treatment for DRIP.
 
sapmanie said:
That's not my understanding but I could be wrong. AFAIK you pay tax only upon selling shares.
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You're thinking of capital gains tax which is 20% and payable on realising a profit on disposal of a qualifying asset
 
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