EU Deposit Interest - Revenue Reporting

Finally.

Received a message via My Enquiries yesterday saying that my submission had been reveiwed and an amended SOL would issue in the coming days. Checked this morning and the amended SOL is available and the Deposit Interest has been correctly coded and calculated.

You’d feel sorry for the people who declared EU interest and had it coded incorrectly and overpaid tax as a result because they assumed competentence to calculate tax correctly on the part of Revenue and who took the liability shown on the Revenue SOL at face value. I appreciate that error and mistakes happen, but this has been gong on for at least 10 months and it’s difficult to see Revenue’s handling of it as anything other than negligent and an abusive.

At this stage surely Revenue should conduct a review of every Form 12 case that had EU Deposit Interest declared to ensure that tax wasn’t overpaid. For the 2023 tax year at least, and possibly for previous years.
 
liam bourke said:
if you receive interest from savings in 2024...you don't have to declare it to revenue until october 2025 ..is that correct?
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If you are Form 11 you may have to include it (as opposed to declaring it) in your preliminary tax calculations in October 2024, depending on which basis you select for your preliminary tax computation. You will declare it when submitting your 2024 Form 11 by October 2025.
 
This thread has caused me to double check my P21 from 2023. I included a small amount of "EU Deposit Interest (excluding UK interest)" in my eForm 12 but in the P21 I don't see any line item to that effect. Presumably this means it's also been incorrectly taxed in my case?
 
nest egg said:
Does the same apply for Form 11?
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No, Form 11 is due by 31 October of the following year.

Freelance said:
How does this reconcile with the statement "This form is to be completed and returned to your Revenue office on or before 31 October 2024" clearly visible at the top of the printer form 12 ?
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It doesn't. The Revenue guidance says the online Form 12 on MyAccount must be completed within four years.
 
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Yes, you'll probably see it under 'Other Foreign Income' or similar.
 
I've just received my P21 Statement of Liability and I'm wondering where I check to see if there is an error or not? I can see on page 1 under "Charged as follows" it shows @33% for "Deposit Interest Received" so I'm assuming that means I might be one of the lucky ones that they didn't make an error with?
 
What I meant by correct was "Is the interest earned amount correct" not "was the calculation of tax correct"
 
MugsGame said:
Yes, you'll probably see it under 'Other Foreign Income' or similar.
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@Freelance was it under 'Other Foreign Income' in your prior SOL?
 
nest egg said:
@Freelance was it under 'Other Foreign Income' in your prior SOL?
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Correct.

On the Declaration which I completed it is shown as "EU Deposit Interest (excluding UK interest)". I also declared Irish deposit interest (Gross Interest received on which DIRT was deducted @33%) in the appropriate box.

On the first SOL the amount declared as "EU Deposit Interest (excluding UK interest)" is shown as "Other Foreign Income" on Panel 1 (Income) and on the calculation page this amount is merged with other income taxable at 40%. The Irish deposit interest I declared appeared separately as "Deposit Interest Received" on Panel 1 and this amount appears on a separate line on the calculation page and is taxed at 33%.

On the second SOL "Other Foreign Income" has disappeared from Panel 1 and the amount declared has been added to the "Deposit Interest Received" line (i.e. the figure here is now the total of Irish and EU Deposit Interest). And on the calculation page the combined total (Irish and EU Deposit Interest) appears on a separate line and is taxed at 33%.

Also, on the first SOL, the amount declared as "EU Deposit Interest (excluding UK interest)" was also shown as "Other Foreign Income" on Panel 9 (Employments, Incomes and Reliefs chargeable to USC) and was therefore wrongly included in the USC computation on the Calculation page. On the second SOL, this disappeared from Panel 9 and therefore was excluded from the USC computation.

The difference in the tax/USC liability is 11.5% of the amount declared, being the difference between 44.5% (40% Income tax + 4.5% USC) on the first SOL and 33% (DIRT) on the second SOL.
 
jpd said:
What I meant by correct was "Is the interest earned amount correct" not "was the calculation of tax correct"
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Yes the figure is the same amount which I specified when completed the tax return. On my SOL, it says that I will pay Revenue back by a phased reduction of €105 per year in my tax credits over the next four years. Is this the best method of repayment or is there anything more financially optimal from a tax efficiency point of view? I'm assume it wouldn't be wise to pay the DIRT bill (€420) using savings.
 
It's better to leave it as it is. With tax credits it's as if you're getting a four-year interest-free loan from Revenue, deducted evenly from your payslip each month. There would be no benefit to paying it off using savings.
 
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