PAYE Balancing Statement P21c

I had this before and it arose as far as I remember due to us having a 53 week payroll year and the tax credit having only been divided in 52 so in effect got an extra weeks tax credit. Same comment would not collect at this time etc. However when we subsequently did a medical expenses claim for that year the claim was reduced by the amount outstanding
 
Revenue has now incorporated PAYE into their existing IT system to allow an integrated view of all taxes for all customers. (BTW It has now become obvious if you are claiming for medical expenses and have VHI (though I know you can still claim both), claiming for rent relief and claiming for mortgage relief etc.)

Therefore AFAIK if you are due back a refund in, for e.g. VAT, CGT, IT and now PAYE (for overpayment, MED1 expenses, MED2 expenses etc) and you owe Revenue money for whatever reason in another tax the refund should be reduced by the amount owed (again this is just a guideline).
 
Bloody hell, this has dragged on.

When a P21 issues with an underpayment there are a couple of statements that can appear on the bottom of the cert.

"This underpayment will be collected by reducing your tax credits for 2006 and 2007" - self explanatory

or

"The collection of this underpayment has been deferred" - This means the underpayment is so small that Revenue don't want a cheque and they won't be bothered adjusting your credits. However, if you overpay in the following year, instead of refunding the full overpayment, they will collect the deferred amount and refund balance.
 
maura said:
underpaid by 375.25, it says at the bottom, "this underpayment will not be collected at this time",......................I tried ringing the tax office, got a machine that said try again later.
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DONT ring them whatever you do, if the man said they are not collecting it, they are not collecting it. One of the reasons in my own relevant experience is the following;

Underpayment of 300 euro. Issue P21. Make a note to customer that you will deduct it from their tax credits, married couple, complicated, which one do you deduct it from, receive phone call from customer, why the underpayment, explain reason, reallocate underpayment to wife on a week one basis, no that doesn't suit, don't owe the money anyhow, hours spent on phone explaining, letter from TD asking why the mistake, whos fault etc etc etc etc etc,

so it's just cheaper to let it go!
 
Thanks davidoco for the advice. I won't ring them again about this so. Did you or do you work in a tax office? is this how you know all this info. If this is concrete, you have made my christmas.
 
Just to add to all this, I received balancing statements for 2002 and 2003 last week. I only submitted returns for them this year. Both of them showed small underpayments. Something like 60 and 150 euros respectively. The wording was that these sums would not be collected at this time. Then two days later, I received a cheque from revenue for 116 euro. I'm assuming that I had an overpayment for 2004 but haven't received the balancing statement yet for that year. When I do, I will check to see if my overpayment in 2004 has been reduced by the underpayment in 2002 and 2003. Will get back on this when I get the next balancing statement.
 
angie said:
I had this before and it arose as far as I remember due to us having a 53 week payroll year and the tax credit having only been divided in 52 so in effect got an extra weeks tax credit. Same comment would not collect at this time etc. However when we subsequently did a medical expenses claim for that year the claim was reduced by the amount outstanding
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My understanding with the 53 week year was that you were actually entitled to an extra weekly credit and standard rate allowance but that you actually had to apply for it to be granted.
 
Re: PAYE Balancing Statement P21c - update

geri said:
Just to add to all this, I received balancing statements for 2002 and 2003 last week. I only submitted returns for them this year. Both of them showed small underpayments. Something like 60 and 150 euros respectively. The wording was that these sums would not be collected at this time. Then two days later, I received a cheque from revenue for 116 euro. I'm assuming that I had an overpayment for 2004 but haven't received the balancing statement yet for that year. When I do, I will check to see if my overpayment in 2004 has been reduced by the underpayment in 2002 and 2003. Will get back on this when I get the next balancing statement.
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In case anyone is still interested in an update, received my balancing statement for 2004. It showed an overpayment of 116 euros. They did not adjust it to take account of the previous two years underpayment. They refunded me the full amount of overpayment for 2004.
 
Apologies have been away and this thread may have run its course but if its of any interest. The statement on the bottom right of my P21c said verbatim "I DO NOT PROPOSE TO COLLECT THIS UNDERPAYMENT" (Revenue used capitals). i.e. at this time etc did not feature. Have not yet received statement for for 2004. Cheers
 
Thanks for the clarification Han. It's always good to hear from the original poster after many replies have been received.

May the force be with you.
 
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