Government backdating new income levy rates to start of year (1 Viewer)

[piggles]

http://www.irishtimes.com/newspaper/frontpage/2009/0416/1224244812773.html


what what what hwat what wahtttttt?!

 

[Thebeard]

Anyone who received a lump sum payment in the first four months of the year – such as a bonuses, which are traditionally paid in the first quarter or dividends – may be affected by the move.

 

[pete]

people on PAYE whose income is spread evenly throughout the year will not face any clawback.

grand so

 

[maims bond]

This doesn't effect PAYE workers. Seems to be an effort to claw back money from people who doctored their income to take a lot of it in before the budget.

 

[Goff]

It's still a disgrace. I reckon it's quite possibly illegal. In the meantime, the Cabinet are keeping their bonuses, despite what Frankenstein said in the budget. It's only for new entrants, apparently. Wonder if that applies to mortgage relief, et al.

Load of wank.

 

[broken arm]

people who doctored their income to take a lot of it in before the budget.

how does this work?

 

[maims bond]

how does this work?

Company directors, people who received a lump sum bonus in the first three months of the year, dividends etc. They must suspect that a lot of people, legitimately or otherwise, front-loaded their pay for the year into the first three months to avoid new taxes. Goff may well be right though, could be illegal and create a lot of resentment.

 

[BonsaiSuperstar]

Anyone who received a lump sum payment in the first four months of the year – such as a bonuses, which are traditionally paid in the first quarter or dividends – may be affected by the move.

not severance pay......?

 

[Goff]

I doubt severance pay will be included. Though you wouldn't know with that shower of fuckers. However, people who are getting severance pay are "more than likely" to be PAYE and it excludes them. But, as I say, they'll try to find a way to screw the genuine person, rather than their non-tax-paying "friends".

 

[magicbastarder]

redundancy payouts will be affected.

http://www.irishtimes.com/newspaper/frontpage/2009/0416/1224244812773.html

 

[BonsaiSuperstar]

it's a f**kin disgrace if i get taxed on my severance pay.
it's not like it's a golden handshake to f**k off like the big bankers got. this is survival money for me. dole money is worth nothing!

 

[Scientician 0.8]

Any legal buffs about? Sounds like something that is illegal.

 

[magicbastarder]

redundancy payments are taxed much lighter than income, if it's your first one in five years or summat. dunno how the levy affects them, though.

 

[broken arm]

Any legal buffs about? Sounds like something that is illegal.

people moving around their payments to avoid taxes sounds illegal/immoral to me ..

but i really don't understand what actually went on

 

[Scientician 0.8]

Avoiding tax isn't illegal, might well be immoral. I suppose hiding your income from the Nazis was probably a noble act.
Evading tax is illegal.

 

[Moods For Mallards]

Tough on the redundant alright. Downright mean, I reckon. Bonsai, how are you going to afford sandwiches?
Fair enough if it's used to head off avoidance.

 

[Froog]

"While statutory redundancy payments are not subject to the income levy, as are certain ex gratia payments, many of those taking voluntary redundancy pay the levy on part of their lump sum. They will now be paying more than the 1 per cent levy they initially assumed to be their maximum exposure under the levy"

i wouldn't think moving your bonuses forward would be illegal, like the budget wasn't announced or anything, just rumours at that stage, you couldn't prove anything. "just fancied a top up in spring"

 

[penexpers]

So they've clarified this

A statement from the Department said that PAYE taxpayers "who are not in a position to manipulate their income only pay levy at new rates from 1st May 2009. Over the whole year they pay at composite rate."

Sounds ok to me.

 

[BonsaiSuperstar]

Bonsai, how are you going to afford sandwiches?

I hope I don't reach this situation.I am not going to even think about it or it will upset me.