Underpayment of Tax

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shipship

Registered User
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I reviewed my tax from last year. The system assumed I was paying into a PRSAI. I've removed that, and the new calculation is there I've underpayed by 7k.

I'm awaiting further details. But from reading online it seems that anything over 6k requires immediate payment.

My pension was taken at source. Meaning I don't believe I've any current way to reduce my liability but I'm going to investigate further.

If on review it turns out my liability is under 6k, does that mean it'll be taken out over four years instead?
 
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Your post is confusing.

This (I presume that you meant PRSA?):
shipship said:
I reviewed my tax from last year. The system assumed I was paying into a PRSI. I've removed that, and the new calculation is there I've underpayed by 7k.
Click to expand...
and this:
shipship said:
My pension was taken at source. Meaning I don't believe I've any current way to reduce my liability but I'm going to investigate further.
Click to expand...
seem contradictory.
 

What to do in an underpayment position

What to do if you have an underpayment of tax or Universal Social Charge
www.revenue.ie www.revenue.ie
How to settle underpayments

Where you have an underpayment of IT or USC of less than €6,000, you will have the option to:
  • pay your liability partially or in full through the ‘Payment/Repayments’ card in myAccount
  • have the full or remaining liability collected, interest free, by reducing your future tax credits from 2022 over a maximum period of four years.
For underpayments in excess of €6,000, a notice will issue setting out the amount owed.

If you wish, you can pay the amount owing through the ‘Payments/Repayments’ card in myAccount. Should you wish to discuss repayment options that best suit your particular circumstances, you can contact us through MyEnquiries.

Information will also be included on your Statement of Liability explaining how the liability will be collected.
Click to expand...
 
ClubMan said:
Your post is confusing.

This (I presume that you meant PRSA?):

and this:

seem contradictory.
Click to expand...
Apologies.

My pension was taken at source. The system assumed I had a PRSA as well, so it underestimated my gross income and tax.
 
What system? Employer payroll or Revenue?
How exactly did it happen?
I thought that if you were making pension contributions from net income then you had to manually claim the tax back?
 
shipship said:
Apologies.

My pension was taken at source. The system assumed I had a PRSA as well, so it underestimated my gross income and tax.
Click to expand...
The only way tax relief for a PRSA is applied by Revenue is if a taxpayer applies for it. It's not something granted automatically.
 
shipship said:
I think it copied over from the previous year.
Click to expand...
I didn't think that that was possible.
But, in any case, your question seems to be specifically about how underpayments of tax are dealt with and the link that I posted addresses this.
 
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