Paying emergency Tax - who to blame?

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jocmccoy

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This is my bother's situation.

received TCC 6th Feb
Notices in March that he is paying a bit too much tax. Payslip was in Irish (dept of education DoE) so didn't notice he was paying on emergency tax basis until then. They said they hadn't received his TCC from Revenue. So he rings revenue (who were very helpful) and they reissue TCC with flat rate expenses added.

The DoE say they did not receive this either. so now paying 42% on full pay. Now, since this was his last paycheck (temp contract) they say they cannot get the tax back for him and he'll have to go to the revenue.

Since he will be working again in Sept for the remainder of the year (with the same shower!), will he be able to:
(a) Get his tax back from revenue before he begins employment again
(b) Enforce any laws/tax rules saying that the DoE should sort his tax out. It seems to be that the dept are absolving themselves of any responsibility - I'm presuming that if he received his TCC, the dept must have also done ... is this a fair assumption

Separately, can he claim welfare benefits if he decided to loaf around for the summer!

Loads of questions - any answers out there????!
 
jocmccoy said:
(a) Get his tax back from revenue before he begins employment again
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Yes - he should be able to claim any overpayments of tax back once he regularises his affairs with Revenue and/or his employer.
(b) Enforce any laws/tax rules saying that the DoE should sort his tax out. It seems to be that the dept are absolving themselves of any responsibility - I'm presuming that if he received his TCC, the dept must have also done ... is this a fair assumption
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Maybe. Maybe not. If they say they didn't receive it (actually his Tax Deduction Card) then surely you have to take their word for it? It's not really in their interest to mess employees/contractors around for the sake of it/
Separately, can he claim welfare benefits if he decided to loaf around for the summer!
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If he is genuinely available for and seeking work then he should apply for Unemployment Benefit/Assistance.
 
Thanks Clubman.

Can he really claim Unemployment benefit? does this impact on his tax credits/hit the pocket in some way. And say, if for example, he earned 100k to june and then 50k sept-dec (typical teacher salary!) can you really then claim tax unemployment benefit for the summer ...


Also, what action (if any) can he take to help ensure that his tax deduction card is produced by revenue and received by the employer.
 
jocmccoy said:
Can he really claim Unemployment benefit?
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He can of course apply. Whether or not he qualifies on his PRSI records (for UB) or a means test (for UA), whether or not he is genuinely available for and seeking work and other qualification criteria that will be decided by the claims officer.
does this impact on his tax credits/hit the pocket in some way. And say, if for example, he earned 100k to june and then 50k sept-dec (typical teacher salary!) can you really then claim tax unemployment benefit for the summer ...
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I don't understand - in particular "tax unemployment benefit". However UB/UA are assessable for income tax if that's what you mean. The UA/UB issue is really separate from his problem with claiming back tax overpaid due to being on emergency tax. He should just call into Revenue to discuss the latter issue with them to sort things out ASAP.
Also, what action (if any) can he take to help ensure that his tax deduction card is produced by revenue and received by the employer.
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He may need to file a Form 12 return to make sure that everything is up to date. But he should first contact Revenue as I mentioned above to sort things out.
 
ClubMan said:
Yes - he should be able to claim any overpayments of tax back once he regularises his affairs with Revenue and/or his employer.

Maybe. Maybe not. If they say they didn't receive it (actually his Tax Deduction Card) then surely you have to take their word for it? It's not really in their interest to mess employees/contractors around for the sake of it/
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I was under the impressiont that the DoE received their TCC online, I recently changed my mum and dad's TC split and hers were changed within one pay period, fortnight, and my dads took over 4 weeks
 
Since he's going back in Sept and assuming he has his credits etc sorted out the easiest way to get his refund would be to let it wash through his next paycheck. I think the employer can pay the refund on behalf of revenue (and effectively deduct it from the rest of their P30 - maybe someone else can confirm this), and even if they can't, they won't be deducting any tax from him until the cumulative figures catch up - i.e. he'll get it back eventually by not having any tax deducted for a while. 4 months could be enough time to get it all back this way, if not he can get it back after the year end by requesting a P21c from the revenue.
If he tries to sort it out now he probably won't have any success much quicker anyway.
If the employer still hasn't received his TCC he could produce the one he received and request that they ring revenue to confirm that it's correct and the most up to date one.
 
Pegasus said:
I think the employer can pay the refund on behalf of revenue (and effectively deduct it from the rest of their P30 - maybe someone else can confirm this).
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The employer can only refund tax if they have received a tax deduction card on a cumulative basis, and only then if the tax paid at that week is more than the tax credits at the same week.
 
presumably TCC = certificate of tax credits. (not tax clearance certificate!)

Once his employer receives this, he can be taxed on the cumulative basis, and all his overpaid tax will be refunded. (he probably won't pay any tax for a few weeks)

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www.payback.ie
Irish Payroll Software
 
Theoretical question - if he gets cumulative tax credit cert, has overpaid 2000 earlier in year, gross for week 500 - can employer pay him the full amount back and deduct it from his total P30 i.e. can the employee be paid more than his gross or does he have to let it run over a number of weeks until it catches up with his cumulative?
 
can the employee be paid more than his gross or does he have to let it run over a number of weeks until it catches up with his cumulative?
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In my own instance last year, I ended up paying emergency tax and when my employer got my Tax Deduction Card, they were able to refund my over-payments to an amount in excess of my gross pay.

Originally Posted by umop3p!sdn
Once his employer receives this, he can be taxed on the cumulative basis,
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But what is this 'cumulative basis'? In what instances would the cumulative basis apply?
 
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