P21 underpayment casued by IB?

L

Lamps

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Just got my P21 from Renenue, it says I have an underpayment of €560. I'm a public sector worker so usually its balanced, never had an underpayment before. All my tax credits are claimed.

However last year I was on illness benefit for a 8 weeks, and this is maybe what has casued the underpayment. But the illness benefit was paid directly to my employer and I got my standard wages, so why is there an underpayment? Shoudl it not balance as out normal?
 
You are probably being taxed twice on your IB. Your employer paid you as normal and paid your tax as normal, so you paid tax on your IB. However Revenue know you received IB, but may not know if it went to you or your employer.

I had a similar situation last year. You should be able to sort it by completing a tax return and informing revenue your employer received the IB.
 
Same thing happened to me this year. It is as losttheplot said, Revenue only know that IB was paid. They do not know that it was paid to your employer.But my P60 made that clear and it was only a matter of pointing this out to Revenue and it was corrected same day.
 
Thanks for the replies.

Will ring Revenue in the morning and see what they say.
 
When you receive IB,and submit to your employer,then your payroll department enters that on their system.This captures IB for the purpose of correctly taxing it.If your employer did not do this then,the Revenue receive that information from Dept of Social Protection,unbeknown to your payroll dept.So when P21 Times comes around it shows an underpayment.Check your payslip,and see if IB was entered on payment details,if not the it was not ran through Payroll.I suggest you approach Payroll and point this out.If the problem is for current year,2014,then it can be run through for this year.For other years,only to 2009,then get your employer to declare that the IB payment was remitted to them,without payroll adjustment,and re-submit it with employer's Declaration to revenue.One other item IB and other DSP payments are not subject to USC/PRSI so you would be due a Refund on the IB you received.PRSI from DSP.Class A,E,H,&P of PRSI are entitled to Ilness benefit,I hope this helps,as I was in the same situation,and I obtained the required result.
 
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