Jointly assessed - not using his Employee Credit?

My husband and I are jointly assessed for Income tax. I am self employed and he was (through all of '07) a PAYE worker.

I was looking over our 2007 Revenue assessment and noticed that we have personal tax credits of 3550 (approx) combined - that's accurate. Also our health expenses are there - great. But nowhere does it mention his Employee (PAYE) tax credit. Why? I know as self-employed I don't get that credit but shouldn't his credit come off our tax liability?

Thanks for any help.

Deb

Is your husband working for your company? (ie, being employed by you?)

If he is, look at this thread http://www.askaboutmoney.com/showthread.php?t=105414

No no. I have no employees. My husband works in a factory. Thanks.

does your husband suffer tax as you wont be entitle to the employee's tax credit if your husbands income is too low to suffer tax etc

Hi Ants. He's definitely tax-eligible. He earned 30k and I earned 20k (rounded off). They've deducted our personal credits of 3500 and our health and refuse expenses. I think it's just the Employee credit that's not on there.

Could his tax credits have been reduced to collect tax due back from previous years or to tax other non-PAYE income he earns?
If not, you should call in to your local tax office to see if they can rectify this matter.

If you have the notice of assessment and the tax return was filed either on ROS or paper you HAVE to tick the box to claim the employee credit ( even if he had it on his PAYE cert) . ROS or the manual F11 will NOT give the credit, even if it is due unless you tick that box. It looks like he is entitled to it, you can ring the number on the notice of assessment and they will amend it for you.

deadlyduck said:

Could his tax credits have been reduced to collect tax due back from previous years or to tax other non-PAYE income he earns?
If not, you should call in to your local tax office to see if they can rectify this matter.

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Thanks duck (lol!). No refunds from other years and no other earnings that year but thanks for the suggestions. I will chase it up.

Graham_07 said:

If you have the notice of assessment and the tax return was filed either on ROS or paper you HAVE to tick the box to claim the employee credit ( even if he had it on his PAYE cert) . ROS or the manual F11 will NOT give the credit, even if it is due unless you tick that box. It looks like he is entitled to it, you can ring the number on the notice of assessment and they will amend it for you.

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hi Graham. I have an accountant who does my books and tax returns. I'm so bad at tax - good at figures but scared of tax! She files my return online
each November. I've been self-employed since 1997 and
we had been getting my husband's PAYE credit on our assessment. I've just dug out all my tax Notices of Assessment and I now see that it wasn't showing the PAYE credit for '06 either. Oh my goodness. Why would they include it up to (& including) '05 and then stop?

It would be a dream come true if I can reduce my '07 liability and
get refunded for some of '06 as my business is gone and dh was laid off. I'm struggling still to pay '07 (never been this late). Two incomes to none this year.

Thanks so much for your replies guys.

Deb___ said:

I've just dug out all my tax Notices of Assessment and I now see that it wasn't showing the PAYE credit for '06 either. Oh my goodness. Why would they include it up to (& including) '05 and then stop?

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I think it may be connected with what I said, (below). Or it could be something else. I think you need to ring your accountant fast and check with her about it. If he was entitled to the PAYE credit and had sufficient tax payable to absorb it and didn't get it then there could be an overpayment.

Graham_07 said:

If you have the notice of assessment and the tax return was filed either on ROS or paper you HAVE to tick the box to claim the employee credit ( even if he had it on his PAYE cert) . ROS or the manual F11 will NOT give the credit, even if it is due unless you tick that box. It looks like he is entitled to it, you can ring the number on the notice of assessment and they will amend it for you.

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Thanks again Graham. I appreciate your help. I rang the tax office and they changed both assessments and are sending out the revised ones - it's great cause I definitely could do with the money. I'd say (as you said) the accountant didn't tick that particular box when submitting my return - twice! I knew '07s bill was too high but the accountant said it was correct as was '06. It's not the first time she's made mistakes. I'm done with her.

Thanks again guys.

Deb___ said:

Thanks again Graham. I appreciate your help. I rang the tax office and they changed both assessments and are sending out the revised ones - it's great cause I definitely could do with the money. I'd say (as you said) the accountant didn't tick that particular box when submitting my return - twice! I knew '07s bill was too high but the accountant said it was correct as was '06. It's not the first time she's made mistakes. I'm done with her.

Thanks again guys.

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Just as well it was spotted now, under the 4 year rule if you had not queried it you could have lost out entirely.