Allowances & credits question

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wobbie

Registered User
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Hi everyone,

I have a tax question that i need some help with. I have recently been made redundant from the company i worked with. They owed me some holiday days that i had not taken.
The holiday pay seems to have been very heavily taxed (no offical payslip provided) with a letter stating that since "i have used up my tax allowances and credits for the year" your tax is so high.
Now i was under the impression that your tax allowances & credits were split up over a twelve month period i.e they are the same value in January as they would be in december. i.e total annual credits / 12, same every month.

Is this correct ?
 
It sounds like they phrased it badly and meant that you had used up your allowances and credits for the year to date. You are correct in saying that (generally) your credits will be the same every month.

If you do not start a new job within 4 weeks, send in a form p50 (you can get it from www.revenue.ie) with your P45 to the Revenue and you will get a partial refund of tax. You can do this every month until the end of the year or whenever you start a new job.
 
Yes - the employee is legally entitled to payslips and the employer is legally obliged to provide them. Do you get annual P60s? Not getting payslips or P60s or (worse still) neither is usually a bad sign.
 
Recam said:
Of What ????
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Well definitely of the employer ignoring their legal obligations and quite possibly of them not dealing with salary payment and tax/PRSI deductions correctly (i.e. it will be difficult to tell in the absence of payslips and/or P60s).
 
ClubMan said:
it will be difficult to tell in the absence of payslips and/or P60s).
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The OP never mentioned P-60's missing, so I don't know where that one came from, we should stick to the situation as outlined.

In my experience the absence of payslip very often is not an indication of anything dishonest or under hand.
More othen than not it's the result of the employer operating a manual payroll and not having the convenience of printed payslips.
It's simply the employer being lazy, and who could blame them, many people don't take a tack of notice of whats on the payslip and are only concerned with what goes into their account.
This however is no excuse for not operating the payroll system as is required by law.
To the OP, don't be drawn to thinking (by comments here) that your employer has done anything dishonest in this situation, why not go back and ask for an explanation, that would be better than any payslip, which if you had it or not might not expalin your current tax position.
 
Recam said:
The OP never mentioned P-60's missing, so I don't know where that one came from, we should stick to the situation as outlined.
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I asked above because it's relevant to figuring out what's going on with the original poster's salary and tax/PRSI deductions.
In my experience the absence of payslip very often is not an indication of anything dishonest or under hand.
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By definition it is because employers are legally obliged to issue and employees legally entitled to receive payslips. So by not issuing them the employer is breaking the law.
More othen than not it's the result of the employer operating a manual payroll and not having the convenience of printed payslips.
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That's not the employee's problem and not an excuse for the employer not issuing payslips.
It's simply the employer being lazy, and who could blame them
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I, for one, would.
To the OP, don't be drawn to thinking (by comments here) that your employer has done anything dishonest in this situation
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By not issuing payslips they have done something dishonest and illegal. Whether or note there is more to this (e.g. incorrect deductions or payments) remains a mystery until such time as such payroll information is clarified via payslips or P60s etc.
 
ClubMan said:
By not issuing payslips they have done something dishonest and illegal. Whether or note there is more to this (e.g. incorrect deductions or payments) remains a mystery until such time as such payroll information is clarified via payslips or P60s etc.
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I disagree in part,

Yes - it's illegal not to provide payslips, however I was giving my experience of the reasons for them not being provided.

There is no evidence that the employer has been dishonest in this situation.
Dishonest & illegal are too different things (it's illegal for me to drive over 100km/hr on my way home this evening, it's not however dishonest (well unless I tell Mrs. Recam that I only drove at 80KM/hr. :) )

Provision of P60 has nothing to do with the OP question if he was over charged tax on his "holiday pay", but I know what you are getting at... however I don't see the need to go there >>>

I never for a second condeemed or tried to make excuses for what the employers is doing in this case, I simply was trying to give a different view of why payslips were not provided & was drawing on personal experience to come up with an alternative to the "dishonest" theory.

I just knew you would be someone who would examine payslips in detail, well, good on you, it justifies them being prepared in the first place, however not everyone is as interested.

Apologies to the OP for going off subject. But it is important not to always jump to negitative conslusions
 
That last payslip is important, when I was laid off from a large company I got a manual last payslip (normally it was a computer printout). there was holiday pay due from what I remember and it showed the final running total of tax paid to date etc. I'd agree with Clubman - it's a bit fishy not to be provided with one.
 
Just to reiterate - in the absence of further information which can only be gleaned from payslips and P60s - I would remain skeptical about the employer being honest in this situation. Hopefully, for the sake of the original poster, my suspicion is misplaced. Maybe the original poster can keep us updated.
 
The OP might advise if he got a P-45 ??? as he will need this to start new employment.

I hope I'm making my other point clear, it is wrong and clearly not legal that an employee doesn't receive a payslip, however there may be reason other that "dishonest" ones why they were not provided, I'm trying to look at all angles. The Employer may be under pressure, particularly if he is letting off staff.
 
True, but OP never mentioned redundance payment, kind of assumed seing as he was questioning "hoilday pay" that redundance wasn't involved.
Maybe OP can clarify !!!
 
You don't need to receive any statutory or non-stautory redundancy to be entitled to an RP1 on being made redundant. Been there, done that.
 
Hi Everyone,

Many thanks for all the replies, after a call to the accountant that ran the manual payroll i have been promised a payslip showing all the deductions to date along with my p45.

The confusion occured on their part because they treated our last payslip (money owed) as if we were still working for the company. We had to go self employed in july so were not expecting to be taxed by the company, we were expecting to take care of our own tax at year end.
As long as all tax shows up on p45 i'm not too bothered,

Many thanks to all who posted.
 
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