Returns required only when asked for?

G

goatee

Guest
Am I correct in understanding that a PAYE worker - with all tax being deducted & returned by her employer, does not need to send any forms etc. to Revenue on an annual basis - and does not need to have any contact with Revenue unless specifically asked by Revenue to fill & return a form. This year my mother has been asked to fill in a return - following several years of mutual silence - she just wants to know if anybody might wonder why she didn't return forms for the last few years even though she earned nothing except a single, PAYE-taxed income, and didn't have any forms sent to her for filling in and returning.

Do they just select PAYE workers at random to fill in a form every once in a while?
 
Yes if the individual only has income that was subject to PAYE then there is no obligation for the individual to return anything to Revenue. It is the employers obligation to provide details of the individuals Gross Salary, PAYE deducted etc...

However, Revenue can subject a PAYE employee to a verification test. In some cases this may done as the individual is earning very little and Revenue may question the persons ability to live off such a salary. Revenue also do this to check that the individual isn't receiving any tax credits which they are not entitled too.
 
The onus is on the taxpayer to inform Revenue of any additional income not already subject to tax, tax-credits erroneously applied or any change in circumstances effecting their tax situation.
 
Of course but that doesn't mean that the individual will change their tax situation so naturally Revenue from time-to-time verify the credits etc...
 
And don't assume that just because your employer calculates your tax and PRSI at payroll and Revenue automatically sends out your statement of tax credits that they are both correct. You need to keep an eye on your statement of tax credits, payslips, P60s etc. to ensure that your tax affairs are kept up to date. For individual changes in circumstances affecting your tax affairs just write to Revenue explaining the details. For more extensive changes return a Form 12 with all the details.
 
Thanks all - that will help her put her mind at rest - although just off the phone to her and she asks me about Eircom shares (the ones she and half the country lost money on). Anybody know of a small practice in Dun Laoire area that could help her fill the return for a reasonable fee - I'm in the other corner of the country, and probably not great with forms anyway.
 
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