Why am I paying so much tax on my private pension

M

merid

Registered User
Messages
40
Hi,

I wonder if anyone could help me out.

I have a private pension where I get a gross amount of 985.48 monthly.

As I am married we have a tax free allowance of 36K

My wife and receive state pensions of 27,194.30 in total for the year

So all income over 8805.70 is taxable at 40% ?

So total private pension for the year is 985.48 x 12 = 11825.76

So total tax for year should be 11825.76 - 8805.70 = 3020.06 x 40% = 1208
or monthly 1208 / 12 = 100

Yet I am paying tax on my private pension of 238.60.

We are both 80 and no other income.

Can anybody explain?

I tried called revenue but they said they cannot take calls as they are too busy and I have no clue about going to revenue online to check it.
 
Last edited:
You tax calculation is not correct
This is the normal tax calculation
Private pension
11,825​
State Pension
27,194​
Total Income
39,019​
Tax due @ 20% (A)
7,803​
Less tax credits
Married couple tax credit
3,550​
Employee tax credit
3,550​
Age Tax credit
490​
Total tax credits (B)
7,590​
Tax due = A - B
213​

However, you are probably not eligible for Marginal Relief although your income is just over the Marginal Relief limit of € 37,150
Total Income
39,019​
Marginal Relief Limit
37,150​
Excess
1,869​
Tax @ 40%
747​

Your Pension provider is deducting tax because your Tax Credits are not up to date. Once they are up to date, you will be refunded any tax that was deducted in error - even if it was deducted over the last 4 years
You will need to sign into MyAccount or ROS online to due this - or perhaps a visit to your local Revenue office
 
@jpd Thank you very much for taking the time to reply. Maybe I should try then to create an account on MyAccount as its not possible to contact them by phone at present. I wish they had a dedicated phone line for over 80's who are not IT literate.
 
merid said:
@jpd Thank you very much for taking the time to reply. Maybe I should try then to create an account on MyAccount as its not possible to contact them by phone at present. I wish they had a dedicated phone line for over 80's who are not IT literate.
Click to expand...
If you are having problems getting set up with a Revenue myAccount I'm sure that you can get assistance in many places - local library, Age Action Ireland, MABS etc. Or even here if you post details of any issues that you experience while registering. I presume that you've seen this already?

Register for myAccount

Register for myAccount
www.revenue.ie www.revenue.ie
 
I don't suppose you are fluent in Irish? I believe that if when you ring their number and press the relevent button they tell you for Service in Irish you get a person very quickly! I had an issue I was trying to contact them for but couldn't get through, was told this but unfortunately I am not fluent in Irish.

That said I did eventually manage to get through to them one day within about 5 mins, hit and miss I'd say, first thing in the morning is not as successful as you would think, I got through at lunchtime which I would have thought would be worst time.
 
Hi @merid

Could you let us know what credits are listed on your Tax Credit Certificate?

Does the €238.60 refer to income tax only or does it include USC?
 
He would have no USC liability - only the private pension is eligible for USC and it is below the exemption limit of € 13,000 pa
 
merid said:
@jpd Thank you very much for taking the time to reply. Maybe I should try then to create an account on MyAccount as its not possible to contact them by phone at present. I wish they had a dedicated phone line for over 80's who are not IT literate.
Click to expand...

Revenue provide short videos on YouTube that will talk you through the steps. Feel free to post back if you have any difficulties.

youtu.be

How to register for myAccount

This video will guide you through the registration process for myAccount.
youtu.be youtu.be
 
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