PAYE & Self Assessment

[weston68]

In the Sunday Business Post (27/9/2009) there was an article on the income tax deadline. The article stated that a person with majority of income from PAYE is only chargeable for self assessment purposes if earning more than EUR3,174 from other sources. As a PAYE payer with dividend and interest income - I'm wondering if this is an actual revenue threshold (and mentioned on their website) or just a general rule of thumb. If it is a revenue threshold was it always this amount (or IEP£2,500 in the good old days)?

 

[bogle]

I think that figure is arrived at based on your tax credits. Up to that figure revenue can reduce your tax credit accordingly the following year to cover any tax money you owe with out you having to send in actual money. Above that figure and even if they reduce your tax credit to nil you'd still a have to pay them some cash. I think thats the source of that figure.

 

[weston68]

Thanks for that clarification.