IFF taxation consultation thread (1 Viewer)

[IFF]

a few months back i had just started a job and was put on emergency tax. at the same time, i received a back payment from another job i finished ages ago, and this was hit with the emergency tax too. i got the money back from my actual job as obv more payments were made to me, but the back pay was a once off. any idea as to how i would go about getting the money back?

it depends on what date is on the p45 or payslip you got for the back pay. it may relate to 2007 but if it's on their payroll for 2008, it would cause problems

the problem here as i see it is that if it's through their payroll for 2008 is that emergency tax is not claimable back until the end of the year as your tax credits are set off against your current employment

for 2007, this is from the revenue website

What must I submit when making a claim?

If you have not made your claim before the end of the tax year you should submit the following to your district office:

• Form P60 (and, if relevant, a Form P60 for your spouse) for the tax year. Form P60 is issued to you by your employer after the end of the tax year.
• Details of your claim for e.g. Medical Expenses, Rent Relief, Service Charges and Trade Union Subscriptions.

http://www.revenue.ie/index.htm?/services/ind_rept.htm#section3

 

[paula]

i finished the job at the end of 06 so the new p45 they sent me helpfully says 'date started: may 08' (when back pay was processed) and 'date finished: dec 06' (date i actually finished). the payslip is dated this year though, so it probably relates to 08.

so i have to wait till the end of the year then? i just wanted the money now cos i'm super broke. but at least if i know i can't claim it then i can temporarily forget about it..

 

[Johnnyc]

Just want to check something re the whole preliminary tax thingy.

2007 was my first year self-employed, so I know I have to pay my tax for that year, plus my preliminary tax for 2008 (which is 100% of my tax for 2007). I got a letter about paying on-line which states that I have until the middle of this month to pay if I go the on-line route, which is what I'm gonna do.

BUT

As preliminary tax is pretty much an estimate for my 2nd year, when do I pay the remainder of my tax for the 2008 year? The following year? Later this year...? As it was my first year, I made feck all and spent quite a bit of cash on expenses, so my first years tax will be fuck all really. But as I have a bit more of a profit in 2008, when do I pay the difference?

 

[Franco]

I'm in the same boat as you Johnny. I'm wondering if i'll bother paying my Preliminary tax. My accountant told me last week to pay it, but i'm hearing from others people that they didn't bother paying it. Dunno what the implications are if you don't pay it, but i'm told lots of people don't bother. I mightn't have it to pay anyways so it may not be an issue.

Oh and you pay the difference when your doing your taxes next year. If you happen to earn less, then they send you a rebate. At least that's what the accoutnant told me last week.

 

[IFF]

Just want to check something re the whole preliminary tax thingy.

2007 was my first year self-employed, so I know I have to pay my tax for that year, plus my preliminary tax for 2008 (which is 100% of my tax for 2007). I got a letter about paying on-line which states that I have until the middle of this month to pay if I go the on-line route, which is what I'm gonna do.

BUT

As preliminary tax is pretty much an estimate for my 2nd year, when do I pay the remainder of my tax for the 2008 year? The following year? Later this year...? As it was my first year, I made feck all and spent quite a bit of cash on expenses, so my first years tax will be fuck all really. But as I have a bit more of a profit in 2008, when do I pay the difference?

the remaining liability for 2008 wil be due this time next year

I'm in the same boat as you Johnny. I'm wondering if i'll bother paying my Preliminary tax. My accountant told me last week to pay it, but i'm hearing from others people that they didn't bother paying it. Dunno what the implications are if you don't pay it, but i'm told lots of people don't bother. I mightn't have it to pay anyways so it may not be an issue.

Oh and you pay the difference when your doing your taxes next year. If you happen to earn less, then they send you a rebate. At least that's what the accoutnant told me last week.

i agree with your accountant.

the 100% preliminary tax is there to avoid interest and charges

if you didn't pay preliminary tax, interest and charges could be charged on your whole tax liaiblity from the day that the preliminary tax was due and i have seen demand notices from the revenue for interest on people who didn't pay preliminary tax

 

[Johnnyc]

Thanks again, dude! Legend.

 

[whathappen?]

Hello
I just got an online account on revenue .ie. I was checking it a few minutes ago and saw the following information
Tax Credits and Incomes status for 2009

PAYE Underpayment Collected (423.00) (423.00) Does this mean THEY OWE ME €423 or do I owe them?????




please please please please please please
on a different page it says

Paye underpayment collected -€423

 

[IFF]

from the reading of it there, it sounds like it was you owed them money but it's been collected (from my experience, i think probably as a deduction on tax credits for following year) so instead of tax credits of say 3,630, you'd have had tax credits of 3,207.

that's what i think.

best thing to do P21 PAYE balancing statement from the page of tax credits & incomes.

but i think if you owed the money, considering current financial status of government, they'd be chasing it like hell

 

[whathappen?]

I got a letter from the revenue today . The only problem is it is in Irish , as is their website.
so does anyone know what this means
Comhiomlan Creidmheasanna Canach

and

Glanchreidmheasanna Canach

and
Comhlan
and
Glanbhanda an Rata Chaighdeanaigh

thanks

 

[CitySickness]

::clef:: I got a letter from the revenue the other day
Opened it, read it, it said they were suckers ::clef::

So I think Comhiomlan Creidmheasanna Canach entails some sort of claim to suckerhood.

 

[IFF]

I got a letter from the revenue today . The only problem is it is in Irish , as is their website.
so does anyone know what this means
Comhiomlan Creidmheasanna Canach

and

Glanchreidmheasanna Canach

and
Comhlan
and
Glanbhanda an Rata Chaighdeanaigh

thanks

my irish is terrible (B2 in ordinary level irish in the leaving cert. not used irish since)

however i found this page which will help me out http://lcvp.slss.ie/resources/Tax%20Credit%20Leaflet%202008%20Irish.pdf and by looking at this site os gaelige i think i know what they mean

from this, i feel Glanchreidmisheanana Canach seems to be Total Tax credits (would be made up of personal credit of €1,830 - paye credit of €1,830 and what ever else - bin charges, rent allowance)

Glanbeadaigh Rata Chaigdeagh would your standard rate band (probably around €35,400)

i've no idea what Comhiomlan means, maybe cumulative

hope that helps

 

[plug]

hello.

apologies for the completely thick/clueless question:

it's pretty safe to say that I know absolutely nothing about paying tax. between
travelling, studying and being jobless I haven't paid tax since the end of 2006.
anyway I finally got a job. so... how does it all work?

obviously I know the amount you pay is a percentage dependent on your wage
and the tax bracket(s) it falls into, but are there other circumstances that are
considered when calculating tax, like family/dependants etc.? what other
payments will I be making?

 

[IFF]

hello.

apologies for the completely thick/clueless question:

it's pretty safe to say that I know absolutely nothing about paying tax. between
travelling, studying and being jobless I haven't paid tax since the end of 2006.
anyway I finally got a job. so... how does it all work?

obviously I know the amount you pay is a percentage dependent on your wage
and the tax bracket(s) it falls into, but are there other circumstances that are
considered when calculating tax, like family/dependants etc.? what other
payments will I be making?

firstly congratulation on getting a job.

the tax you pay will be affected by your tax credits, a listing of the tax credits are here http://www.revenue.ie/en/tax/it/tax-chart.html

you'll get the PAYE credit and the Single Person credit. This would reduce your tax liability by €3,660 [unless you are married, then you and your spouse could split the married person credit between yourselves. this is double the single person credit because you's are 2 people]

other credits available to reduce your tax liability are - rent relief for people renting (worth €800 per year), mortgage interest relief (being reduced now. this is deducted at source), service charges (bins. worth €80), trade union membership (€70),

there are special reliefs for dependent relatives (for them, you can also claim interest relief, health expenses and insurance)

an interesting relief for spuses where one is stay at home and the other is working is the home carer's allowance - http://www.revenue.ie/en/tax/it/credits/home-carers.html if you have a child and your wife stays at home to mind the child, you can claim the home carers allowance (€900). the home carer can earn up to €5,080 for the year.

there is an incapacitated child allowance for children with disabilities (though when it comes to adults, the only tax credit is for blind adults. So, for example, there is no tax advantage for people with cerebral palsy as such. god damn, there is no advantages for disabled people at all)

you can also claim for medical expenses for you, your wife and any kids. this is done after the year

you may also qualify for http://www.revenue.ie/en/tax/it/credits/long-term-unemployed-return-to-work.html

widows and widowers have tax credits also

this has been a very morbid post. disabilities,death, dependent relatives,
illness

other deductions i'll answer now

 

[IFF]

the big deduction from your salary would be the PRSI payments. there's two types of prsi, employers and employees.

the employers is paid by your boss, employees is paid by you. the employers does not affect your gross salary

it's complicated. if you earn less then €352, then your contribution is 0%.

if you earn between 352 - 500, you pay 0% on your first €127 and 4% on the balance and if you earn over 500, you paid 4% on your first €127, 8% between 127 and 1,443 and 9% on the balance

this is independent on what you are paid weekly, it doesn't accumulate so if you earned 550 one week but only 250 the following, each week is done on their own basis.

their is also the income levy which is a tax without calling it a tax

From 1 May 2009

• 2%: Income up to €75,036 p.a.
• 4%: Income between €75,037 and €174,980 p.a.
• 6%: Income in excess of €174,980 p.a.

other deductions may be trade union fees, or pension payments. these would be at your discretion

youyr employer should have you fill out a specific form where you can claim the tax credits with as you would be a first time employee

you could claim tax credits personally also and for private information, this is the prefered way. the employer would only get a certificater saying how much tax credits, not what made up the tax credits

 

[plug]

ah. nice one. cheers! looks like I'll have to do lots of reading. time for a cuppa...

 

[Froog]

i received about 1400 in shares from my company and was told that if i sell them before 3 years, i have to pay tax on, which i assume is capital gains tax at 25%. i went to the tax website

http://www.taxireland.ie/taxadvice/CapitalGainsTax.aspx

and it says the first 1300 or so in capital gains in a tax year is tax free, so can i sell them now and only pay tax on the 100 quid extra?

 

[Froog]

also, do i have to pay income tax aswell?

 

[IFF]

if you made a gain on the sale of the shares, you'd have to pay cgt on it anyway on the gaina fter deduction of €1,270

i'll get back to you on the income tax consequences tomorrow night. i need to look it up for proper understanding of it

 

[theweeyin]

if you made a gain on the sale of the shares, you'd have to pay cgt on it anyway on the gaina fter deduction of €1,270

i'll get back to you on the income tax consequences tomorrow night. i need to look it up for proper understanding of it

What a ledge!! .|..|

 

[IFF]

i checked the income tax with tax books at work

the 3 year rule was what was being refered to. if you sell within 3 years, you are liable to income tax for the year you got the shares in.

the income tax would be on the value of the shares recieved on the day they were recieved less any contribution you paid for them (i.e. shares cost 5,000, you paid €1,000. therefore income tax on the €4,000)

as i said last night, you would pay cgt but the cost of the shares would be deductible on the cgt (so if you sold them for 7,000 and the cost was 5,000. your cgt gain is 2,000 less the 1,270 exemption. you would pay tax on the 730)

if the shares had gone down in value after you recieved them, this would be a cgt loss and could only be set off against future cgt gains (sadly not against the income tax)

as a side, thinking there, anyone who recieved bank of ireland or aib shares as an employee in the last 3 years and went to sell them without knowing this, they'd get screwed on the income tax part of it. it would be that the shares are now worth a whole lot less then the income tax liability on the sale.