Hi guys,
Please forgive the long post. So... as I mentioned previously... I did my first tax return in 2006, and then this year did one for 2005 (tax was paid, but I wanted to claim some extra reliefs) and one for 2007.
2006 was complicated for me (shares) so when I got a 1600 refund I thought OK maybe...
However this year has been a series of blunders on revenues part. Finally I am at the position where they say they owe me €3000 for 2005 (first they told me I was due 6000) and again for 2007 (first they told me I owed them 14000). Now as I got the 2007 cheque I've spent some time trying to understand how they could possibly overcharge me for that amount when my income is 95% PAYE.
I finally think I understand their mistake. I have a company PRSA (actually had... was just made redundant). In 2007 the company paid some money and so did I. Tax relief was granted at source on my contrib. On the form 11 I have correctly entered the amounts in the right boxes, but I see that on the notice of assessment revenue have granted me relief on my PRSA contributions (which went in the box that says "no further relief is due"), even though this amount was subtracted from my gross before it was taxed. So therefore I am getting double relief and this explains the big refund.
I spoke to a friend about this and he said he has had the same problem. He says revenue do not properly understand the PRSA system... depending on how the employer treats it. He has rung them every year to correct this.
So... anyone else see this? Should I be honest and tell revenue I think they are wrong (for 05/06/07)? Are they likely to charge me penalties for the 2006 tax which they incorrectly did not charge me? (2005 and 2007 cheques not yet cashed). If they do this I think I might be so annoyed that I may send letters to all local TDs, George Lee and others.
Maybe I am wrong? Maybe this is due to how our company payroll company did the PRSA calculations? Maybe it's not widespread. Just to clarify the PAYE deducted tax was correct at the time (I think). The error comes from revenue recalculating based on the form 11.
I guess I'll ring them for the 4th time tomorrow.
Ix.
Please forgive the long post. So... as I mentioned previously... I did my first tax return in 2006, and then this year did one for 2005 (tax was paid, but I wanted to claim some extra reliefs) and one for 2007.
2006 was complicated for me (shares) so when I got a 1600 refund I thought OK maybe...
However this year has been a series of blunders on revenues part. Finally I am at the position where they say they owe me €3000 for 2005 (first they told me I was due 6000) and again for 2007 (first they told me I owed them 14000). Now as I got the 2007 cheque I've spent some time trying to understand how they could possibly overcharge me for that amount when my income is 95% PAYE.
I finally think I understand their mistake. I have a company PRSA (actually had... was just made redundant). In 2007 the company paid some money and so did I. Tax relief was granted at source on my contrib. On the form 11 I have correctly entered the amounts in the right boxes, but I see that on the notice of assessment revenue have granted me relief on my PRSA contributions (which went in the box that says "no further relief is due"), even though this amount was subtracted from my gross before it was taxed. So therefore I am getting double relief and this explains the big refund.
I spoke to a friend about this and he said he has had the same problem. He says revenue do not properly understand the PRSA system... depending on how the employer treats it. He has rung them every year to correct this.
So... anyone else see this? Should I be honest and tell revenue I think they are wrong (for 05/06/07)? Are they likely to charge me penalties for the 2006 tax which they incorrectly did not charge me? (2005 and 2007 cheques not yet cashed). If they do this I think I might be so annoyed that I may send letters to all local TDs, George Lee and others.
Maybe I am wrong? Maybe this is due to how our company payroll company did the PRSA calculations? Maybe it's not widespread. Just to clarify the PAYE deducted tax was correct at the time (I think). The error comes from revenue recalculating based on the form 11.
I guess I'll ring them for the 4th time tomorrow.
Ix.