EU Deposit Interest - Revenue Reporting
- Thread starter Corola
- Start date
@PIC16f84
So Revenue issued a new statement of Liability to me today.
If you have a chance to check the 2 screenshots.
I have also attached image of the original Statement.
Does this new one look correct. is the €59 not a repayment for charging the interest €399 at the wrong tax & USC rate in the first place?
Thank you
Attachments
@ACER10 yours looks legit to me, you have the 33% of your interest in page 1 (so do I) and then the same amount is displayed on the section Income from Employments, Pensions and Other Sources as it should be. My problem is I have the amount in Panel 4 Tax Credits so technically they treat my due tax from interest as a tax credit, basically refunding me instead of charging me
Ok.. thank you @PIC16f84
The person who amended mine through My enquiries, was the same person who phoned me following letter to Mr. Cody Office. So perhaps, I was just lucky.
I hope yours gets sorted soon.
Accountants concerned about issues with Revenue's Form 11
Accountants, tax agents and those required to file their own self-assessment income tax returns have expressed concerns about difficulties they have experienced with Revenue's Online Service (ROS) in recent weeks.
It is starting to make the news at least
Good to see. Shame it takes Accountant bodies to influence Revenue to sit up & address a very obvious issue impacting many tax payers who have clearly highlighted the issue to them & Mr Cody's Office.Accountants concerned about issues with Revenue's Form 11
Accountants, tax agents and those required to file their own self-assessment income tax returns have expressed concerns about difficulties they have experienced with Revenue's Online Service (ROS) in recent weeks.www.rte.ie
It is starting to make the news at least
Has anyone here tried submitting a Form 11 return since Revenue's June 26th update & hit this issue? If so, would other submitters be better off waiting until July 15th to submit their 2023 Form 11 when "certain problems" are fixed?
Re:
"Filers can choose to complete a prepopulated return in ROS online or offline options," Revenue added"
In theory (or in practice for anyone who has tried it), would submitting an offline (paper) Form 11 be a workaround to this issue?
I submitted my form 11 on July 2nd and can see under 'Charged To Tax As Follows', that DIRT was charged at 33%.
Are you 100÷ sure on this?
Social insurance
Social insurance contributions entitle you to a range of benefits administered by the Department of Social Protection.
The rule:
Unearned income from rents, investments, dividends and interest on deposits and savings is liable to PRSI at 4% since 1 January 2014.
The exemptions:
People aged under 16 and over 70 are exempt from PRSI and are not liable for the new charge.
PAYE tax payers who are not considered 'chargeable persons' by Revenue are not liable for the new PRSI charge. A person is not a 'chargeable person' if their income from non-PAYE sources is less than €5,000 and this income is taxed under the PAYE system.
A Form 11 user is not taxed under the PAYE system so they pay PRSI on all unearned income.
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torblednam
Registered User
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Everything you say there is spot on, but I think one potentially crucial thing is missing...Social insurance
Social insurance contributions entitle you to a range of benefits administered by the Department of Social Protection.www.citizensinformation.ie
The rule:
Unearned income from rents, investments, dividends and interest on deposits and savings is liable to PRSI at 4% since 1 January 2014.
The exemptions:
People aged under 16 and over 70 are exempt from PRSI and are not liable for the new charge.
PAYE tax payers who are not considered 'chargeable persons' by Revenue are not liable for the new PRSI charge. A person is not a 'chargeable person' if their income from non-PAYE sources is less than €5,000 and this income is taxed under the PAYE system.
A Form 11 user is not taxed under the PAYE system so they pay PRSI on all unearned income.
@daheff has said that they're filing via Form 11, but has also said that their non-PAYE income is less than 5,000. While you're absolutely right to tell them they'll be paying PRSI if they file a Form 11, the real question is, should they be filing a Form 11 at all... it's possible that their Income tax registration should be ceased and they file Form 12.
If you are over 5000 euro the Revenue tells you to file Form 11 as Form 12 is only for non-PAYE under 5000. So you have to pay PRSI.
Sometimes, even if you are over 5000 euro they allow you to file Form 12 for that year and you don't pay PRSI for that but they proceed to register you for IT and the next year you have to file form 11
You're right but you can be a Form 11 user for other reasons, the €5000 unearned income is just one reason. For example if you've received shares from your company or if you're filing tax on ETF gains.
Who should register for Income Tax self-assessment?
This page outlines who should register for Income Tax self-assessment
revenue.ie
It's beneficial for taxpayers with only rental or deposit interest etc (" unearned " income) to pay PRSI for their contributory pension if they are lucky enough to live to pension age.
I don't see it as unfair. Higher earners pay higher rates of income tax and USC on earned income. This is the same principle, having an exemption from PRSI for lower levels of unearned income.
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This is not my point.
Take this example:
Person 1, paye worker, earns €50k from employment plus €4k rental profit, uses form 12, no extra prsi on rental profit
Person 2: self employed, earns €50k from self employment plus €4k rental profit, uses form 11, pays extra prsi on rental profit
Person 2 ends with less money in their pocket with no extra benefit, yet they earn the exact same gross and have the same unearned income!