Am I due a tax Refund?

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Vinnie_cork

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I’m wondering If I have paid too much tax for 2008! (Hoping I have anyhow). I think I may have been charged 41% when I should not have been.

My Net Standard Rate Band for 2008 was €36,082.28. My Gross Tax Credits for 2008 were €3,864.

I started my employment on the 14th of April 2008 following 11 weeks of unemployment. My only source of income other than working where I am now for 2008 was €2210 for the first 4 weeks of 2008,

My Gross Taxable YTD as seen on my week 52 pay slip shows that I made €29,023.94. My Tax Paid YTD was €4,113.24 as of week 52.

So my total income for 2008 was (€29,023.94 + €2210) = €31,233.94.

If I was charged 20% Tax on the €31,233.94 and deduct credits of €3864 I work out tax for 2008 due for me should be €2382.78. As I said above, my Tax paid YTD for 2008 is €4113.24. Have I overpaid by €1730.46?
 
1) Remember to include taxable element of jobseekers benefit (dole) This is the amount you were paid less any child element less €13/week.

2) Were you on Week 1 basis per week 52 payslip? It looks like you may have been as the tax paid is more than would be expected if on a cumulative basis. It can happen that you get caught for 41% if pay > weekly Std Rate Cut-off point but for the year as a whole you wouldnt have exceeded your SRCOP.

3) Was ther any tax paid in the first 4 weeks employment too? Check also did the employer include in TOTAL YTD the pay & tax the earlier employment.

Even including JS Benefit you're probably not going to exceed the SRCOP of €36K so you may well be due a refund.
 
I was self employed upto January 2008, My self employed income for 2008 was only €2210, after work related expenses for January 2008 were deducted, I paid the minimum self assessment tax return of €253 for self employment income last October for 2008.

I had Job seekers allowance for 7 weeks only during 2008. I think it was about €183 a week. (It arrived in a lump sum 7 weeks after signing on and funnily it was on the day I got a job offer). I had no other benefits. But I did not account this in my income figures mentioned above.

I started work at week 16. My first Pay slip read YTD Tax paid €0, my second slip read the amount I paid on my 1st week and week 52 is the accumulative tax paid while a PAYE employee from week 16 upto week 52.
 
Since you were self-employed and then commenced PAYE employment during the year it is likely that the Tax Credit Cert for the employment is on W1 basis. Get your W52 payslip or P60 for 08 and file the 2008 (final) self-employed F11. You can do that through your accountant ( if you have one) or on ROS. You can calculate any refund due on ROS before submitting. 2008 returns can be filed now and assessments issue pretty fast.
 
If you could provide us the the following info , it would be helpful:

Married / Single
1.Breakdown of the € 3,664 tax credit
2.Breakdown of the € 36,082.28 SRCOP
3.occupation
4. dependents
 
I’m Single with no dependants.

Credits made up of following:

  • Personal Tax Credit 1830
  • Paye Credit 1830
  • Flat Rate Credit 25.40
  • Service Charges 67.60
  • Health Insurance Credit 111
Totaling €3,864

SRCOP made of following:

Standard 35400
Flat Rate 127
Health 555

Totaling €36,082


Occupation: Public Service (My Salary for a full 52 wk year would be over my SRCOP by about 5k)

My Total income for 2008 was €32433.94 (taking into account 3 weeks self employment, 7 weeks Dole and 36 weeks PAYE employment) so it was €3648.06 less than my actual SRCOP. But my tax paid for 2008 was €4133 as a PAYEr and €253 as Self employed.
 
sandrat said:
Is there a difference if you have children?
Click to expand...

Of course , dependents make a difference .

2008:>
A Single parent can get an extra tax credit of €1,830
A Married parent can get a Home Carer tax credit of € 900

These are of course dependent on circumstances
 
As you were self-employed before going on the "dole" it is likely that you were receiving Jobseekers Allowance which is not taxable and therefore should not be included in your taxable income.
However if you were in receipt of Jobseekers Benefit it is taxable as a previous poster has explained
 
It was allowance rather than benefit, I have typed up and sent a letter to the Revenue offices here in Cork a letter to ask if there is anything due back. Suppose there no harm in asking. If I owed them they'd be fast enough to ask me. I'll post their response.
 
Just an update on this.

I wrote to the Revenue Commission asking them the question I posted here the day after posting it. I thought I overpaid by €1730, but was nervous about asking in case I actually hadn't over paid but in fact underpaid by some mad luck.

I received a letter today saying I was correct in the assumption that I overpaid. I received a nice cheque for €1989. My stint of unemployment caused the error and my pay was subject to 41% tax when is should not have been. So needless to say I am delighted as I had a lot bills this month and my bank account was well over drawn, so i'm just about back in the black again.

So its worth it to check. The tax man can make mistakes too.
 
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