EU Deposit Interest - Revenue Reporting

ashambles said:
I suppose over 5k in interest would be relatively uncommon -
Click to expand...
If the posts over the last 12 months on the Deposits threads regarding high interest options (Raisin, Bunq, etc) are anything to go by a lot of people will be in this category for 2024, whatever about 2023. It will be a considerable headache for Revenue if they force large numbers to complete Form 11, not to mention for the taxpayers themselves. They surely need to look at increasing the threshold.
 
That's Form 12.
 
Hardly in Revenue's gift to to that.
 
I had a feeling operator error was a factor in some of these cases. Revenue has it's own terminology which takes a bit of getting used to.
 
Harvard said:
Hardly in Revenue's gift to to that.
Click to expand...
Who is talking about gifts ? Leaving the €5,000 deposit interest threshold for completion of Form 11 instead of Form 12 has no impact on tax liability or yield. It simply forces a large number of people to complete a more complex form and procedure and one that has a far greater manual overhead on the Revenue side for no benefit whatsoever.
 
The €5000 limit is the threshold to become a chargeable person. Chargeable persons pay PRSI at 4% on their unearned income. If they increase the threshold they will reduce their tax yield as there will be fewer chargeable persons.
 
Corola said:
Those people with high levels of unearned income are supposed to pay PRSI on that interest. Taxpayer discomfort doesn't really figure into it.
Click to expand...
I didn't in any way dispute that people should pay whatever PRSI they are liable to pay. Nor did I suggest that the current PRSI liability should be changed in any way. Nor did I mention comfort or discomfort. I simply suggested that the €5,000 threshold which forces people to complete Form 11 rather than Form 12 is too low and should be increased.
 
Corola said:
The €5000 limit is the threshold to become a chargeable person. Chargeable persons pay PRSI at 4% on their unearned income. If they increase the threshold they will reduce their tax yield as there will be fewer chargeable persons.
Click to expand...
That could easily be catered for on Form 12 by exception, avoiding the need to draw a lot more people into the complexities of Form 11.
 
If people are earning over €5k in interest maybe they should be looking at paying a small fee to an accountant to file on their behalf.
 
I can confirm irbx issue as Im suffering it too. Despite logging the interest as EU Deposit Interest the moment I try to amend it it shows under other Foreign income instead, weird.
I've contacted revenue and at the same time trigger another tax review again, removing the Foreign income and adding again the EU Deposit Interest.
Another problem I've noticed is that my health expenses went missing as well so I wasn't getting any tax credits for them, they really has a glitchy system.
 

Not good. People should be able to trust that their tax returns will be processed correctly. Revenue should not be making basic mistakes like this for multiple people. Seems like Revenue have screwed up the coding behind EU deposit interest and some other items like you and others said. The media should report this.
 
Thanks. Will amend with Revenue.
 
With this glitch if someone was earning below the top rate of tax, potentially Revenue have asked for too little tax and may be back looking for more.

Does Form 12 allow people to declare more than 5000 in interest or does it refuse and ask people to register for Form 11 instead?
I've a vague(wrong?) memory that prior to the decision to add PRSI that if the only non-earned income was from interest that in practice someone didn't become chargeable. You could earn more than the chargeable limit in deposit interest but not end up having to do the Form 11.

If that was the case it's not the case any more - but do Revenue actually enforce it via their forms (yet).
 
I will be earning well over €5,000 in deposit interest with Raisin this year. I believe I just pay the DIRT tax and that I do not have any PRSI whatsoever or any other tax to pay, because I am over 70 years, unlike the under 70s. Can anyone confirm that this is the case?
 
You must log in or register to reply here.
Menu
Log in
Register