Are tax credits applied if you owe revenue

I

Ilovemydog

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I'm working out some rough calculations.

I suspect I made a balls of tax in 2009 and 2010.

I'm a carer and that's a form of taxable income which I didn't know about.

I also had some hours of work. So I was bringing in an carers allowance of 205 and a wage of about 200 back then but I don't think these two were combined.

I have to get my tax affairs in order now this summer.

So, are tax credits applied if you owe money like this going back a few years.

I'm doing some rough calculations. Without tax credits the sum of tax is coming up to about 4500, prsi is 900 euro and usi about 550.

All that is very heavy for me and I'm getting sick at the thought of it.

If tax credits are applied, it brings down that sum of 4500 to something more manageable and less scary.

My circumstances changed in 2011 by the way. I continued with carers. The other income I lost.
 
Did Revenue audit you? Otherwise I would expect that nobody really cares about anything in terms of PAYE or Income tax if it is more than 4 years ago. Could be wrong though.
 
No, revenue didn't audit me. I suspect a mistake was made and it was something that was on my mind for a while. I need to sort out something else with tax and I'd be afraid this past issue will come up.
 
They are human and if you are not earning a lot they will set up either a plan to pay them or reduce your tax credits over the year so it is paid evenly over the year. In the meantime don't worry about it and let them get in touch.
 
Thank you. The whole thing is a mess to be honest. I was putting it off for a while but it's time for me to get my ass in gear. Doing rough calculations, I get different sums. Without tax credits, I could see things climbing up to about 11,000 euro then I understand there is interest and penalties. I could see it climbing. My only saving grace here would be tax credits. My income is so low I would only be able to pay off about 40 euro a week. If it's a high sum that can take me years unless if my circumstances change for the better. Also I'm 35, female and never been pregnant. I might like to go down the route of trying for a baby with my boyfriend maybe in a year or two or maybe three. It's time for me to sort this because the last thing I need is muck like this hanging over me. I'm a single person (I'm a carer for a neighbour). I think possible tax credits for me would be single persons tax credit, PAYE maybe. My second income at the time was PAYE.
 
newirishman said:
Did Revenue audit you? Otherwise I would expect that nobody really cares about anything in terms of PAYE or Income tax if it is more than 4 years ago. Could be wrong though.
Click to expand...
A taxpayer can request reconciliations for the 4 years preceding the current tax year; Revenue can reconcile back 7 years.
 
Ilovemydog said:
Thank you. The whole thing is a mess to be honest. I was putting it off for a while but it's time for me to get my ass in gear. Doing rough calculations, I get different sums. Without tax credits, I could see things climbing up to about 11,000 euro then I understand there is interest and penalties. I could see it climbing. My only saving grace here would be tax credits. My income is so low I would only be able to pay off about 40 euro a week. If it's a high sum that can take me years unless if my circumstances change for the better. Also I'm 35, female and never been pregnant. I might like to go down the route of trying for a baby with my boyfriend maybe in a year or two or maybe three. It's time for me to sort this because the last thing I need is muck like this hanging over me. I'm a single person (I'm a carer for a neighbour). I think possible tax credits for me would be single persons tax credit, PAYE maybe. My second income at the time was PAYE.
Click to expand...

I suspect that you owe little or nothing. Even if you do, the possibility of interest and penalty charges, given your income and circumstances, seems remote. Try and stop worrying.
 
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