2004 Tax Credits & BIK

J

JohnJRyan

Guest
2004 Tax Credits & BIK

Hi all,

Just two questions related to the my take home pay.

Firstly my understanding is that the lower tax rate/band is 20% on the first 28000 (taken from the information here [broken link removed]
However when I look at my tax credit statement for 2004 it states that my Standard Rate Band is 28000 but then it also states that it is increased by 64 euro so that the standard rate cut-off point is 28064. Does anyone know where this 64 euro came from. In my tax credits there is an entry for expenses of 645 euro and relief at 20% of this so I get 13 euro extra on my tax credits also?

Secondly I was wondering if I should be paying PAYE on the VHI contribution made by my employer. Currently one twelfth of the gross cost of the VHI contribution is added to my gross salary each month and PRSI is charged on this BIK. However I notice that no PAYE is calcuated against this BIK. Anyone know why this is the case?

Cheers,
John
 
I will let someone else deal with the VHI.

You have €645 expenses. You should get full tax relief on these at 42% which would end up putting 270.90 in your pocket.

But if you only pay tax at 20%, then they want to give you only 20% tax relief or €129.

So I reckon that they should increase your tax credits by €129 and increase your Standard Rate band by the same amount.

I don't know where they got the actual figures you quoted. You should call the tax office.

Brendan
 
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