Treatment of PRSA Contribution on P21 Balancing Statement

H

Happy Girl

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I have just received my P21 balancing statement which states that I owe 575euro. I have calculated myself and cannot figure out where this is coming from. I would be grateful if anybody can clarify the following for me. In Panel 3 it lists my Annual PRSA tax relief figure (1,044euro) as a "Deduction" which is deducted from our Gross Income. Should this figure not be my total Annual PRSA contribution ie. 5220euro which would then be deducted from our Gross?
 
The "deduction" is a tax credit at 20% which on €5,220 is €1,044. So they are deducting €1,044 from the actual tax paid.
 
Graham_07 said:
The "deduction" is a tax credit at 20% which on €5,220 is €1,044. So they are deducting €1,044 from the actual tax paid.
Click to expand...

No Graham this is not the case. They are not deducting the €1,044 from the actual tax paid. They are taking our Gross and then subtracting our "Deductions" i.e. €1,044. My understanding is that they should have deducted the €5,220 here instead. Am I correct? It doesn't make sense to me that they would deduct a tax credit from our Gross.
 
papervalue said:
Do you have any income chargeable at the higher rate?
Click to expand...

No, all at 20%.
Balancing Statement as follows (approx figures):
Income (see panel 1 for breakdown) i.e. our combined incomes 60,000
Less Deductions (see panel 3 for breakdown) i.e. PRSA 1,044
Taxable Income 58,956

(I contribute 5,220pa and get relief @20% i.e. 1,044. Should my
"Less Deductions" not be the actual amount I contribute i.e.
5,220 instead of the actual relief I get)
 
Are you paying the PRSA provider directly, i.e. not via an employer scheme? If so I'd expect it to be as you said. Perhaps a call to the Revenue District LoCall number on the P21.
 
second that, it does not look right. i assume you put your age on tax return.

do ring up and seek explanation of why 5220 not deducted, may end up in refund if they correct it
 
Graham_07 said:
Are you paying the PRSA provider directly, i.e. not via an employer scheme? If so I'd expect it to be as you said. Perhaps a call to the Revenue District LoCall number on the P21.
Click to expand...

Am paying my PRSA provider directly and have my tax credit on my tax free allowance cert issued at beginning of year. Tried to call Revenue today and told all their systems "down" and to "maybe leave til next week to ring" so just want to post here and get some responses. Thank you to all for your replies.
 
Oh Happy Days. Just tried Revenue again and yes they did make an error . I was correct in my assumption about the PRSA. Revised P21 on its ways to me with an overpayment of 261euro instead of an underpayment of 575euro. Takes the sting out of the whack in my pay pack this week with new levy. Thanks to all to replied to my query.
 
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