Under payment of Tax

I have just received a balancing statement for 2008, advising i have under paid taxes. I didn’t not work for approx 5 months of last year and submitted P50 on returning to work i received an amount back in additional tax, I queried this with my job and they advised that it was due as i had be unemployed.

I rang the tax office and they have confirmed that there is an under payment on my account of a substantial amount due to this they will request it in cheque...

I don’t have this money!

can someone please advise of the procedure for the tax office to recoup this money and in addition who will advise me of this my employer or the tax office.

thanks
Ciara

Once the Revenue office has issued a P21 and has requested payment directly, as against deduction from future pay, then it is no longer a metter for the employer.

If you have not the resources to pay the Revenue in one lump sum, can you ask them if they will, instead, collect by deduction from future pay , say in 2 or 3 tax years. They are generally amenable to this although given the times we have their policies may have changed. Your best bet is to contact Revenue at the number on the P21 and speak with someone about it.

I have another question regarding underpayment of tax...

I have recently sent in med1 forms for 2004-2007. I have received some of the repayments. However, revenue say they are withholding some of the money owed to me for 2004 because of an underpayment of tax in 2002.

How do I go about investigating if I do owe them money and how much?

I have been in the same employment (public service-department of education) since 2000. Does this mean that the underpayment of tax was due to a mistake on the part of Dept. of Educ's calculations?

While I can only reclaim monies owed to me going back 4 years, how far back can revenue go to recoup what is owed to them?

Thanks,
P

pavlov said:

revenue say they are withholding some of the money owed to me for 2004 because of an underpayment of tax in 2002.

How do I go about investigating if I do owe them money and how much?

I have been in the same employment (public service-department of education) since 2000. Does this mean that the underpayment of tax was due to a mistake on the part of Dept. of Educ's calculations?

While I can only reclaim monies owed to me going back 4 years, how far back can revenue go to recoup what is owed to them?

Thanks,
P

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Ask for copy of the 2002 P21 which will show how calculated. Remember sometimes P21's are issued without instigation by the taxpayer and they can be wrong. They may not, in those circumstances include all claims to which the taxpayer is entitled. I had such a case recently and got the P21's amended which took them from an underpayment by the taxpayer to an overpayment (which they were delighted with) . If the 2002 underpayment is correct then Revenue can deduct that form any subsequent overpayment.

Revenue are not subject to the 4 year rule so they can go back as far as they like if you owe them.

The Dept of Educ will have operated the instruction given to them. If that was wrong and resulted in you paying less tax than you should have, then you owe it. You basically got more than you should have in net pay.