Are these tax credits right?

D

DBehan

Registered User
Messages
11
Hi there,
I have a query on tax credit changes made recently. Sorry if this is a bit long winded...
My husband has recently gained employment of a FAS CE Scheme after being unemployed for just over a year.
I work part time, 3 days per week.
In Dec 09 I had all the tax credits allocated to me when I started working (after also being unemployed for a year).
The lady who runs the payroll in his job told hubby she would sort out the tax credits for him so I said grand.
This morning I logged into the revenue website and downloaded the up to date tax credit cert.
The cert for me seems to have been issued on a week 1/month 1 basis (why?) and my tax credit has been reduced by an amount for DSFA Jobseekers Benefit
My monthly tax credit is now only €131.42 (was 436.42).
DH’s monthly tax credit is €305.00
As I run the payroll in my job I put my new tax credits into the system and previewed my payslip for September – it has reduced my monthly salary from €1250 to €182 for the month.
I’m having heart failure here. I know I need to ring the tax office but can’t do so until later and they generally don’t make mistakes on certs do they?
I’d really appreciate any advice.
Thanks
 
Did you want to transfer the credits you have been using all year to your husband? If not, his employer can't just decide to take them and you should ring Revenue to get them back.
If you and your husband did decide to transfer the credits to him then put yourself on week one basis so that you'll not have to pay the underpayment for the whole year in one month. If you are using a computerised system there should be a box to tick for wk1/mth1.
You will have to settle up after year end, but can reduce next year's credits if there's an underpayment, which there shouldn't be if he's also on week one basis.
Sybil
 
not sure why but the Revenue sometimes change one spouse to a week 1 basis when there is a change in the joint circumstances - it happened me earlier this year and was resolved with one phone call to the Revenue.

In relation to the deduction for Jobseekers' Benefit - this is also wrong. Full time JB is taxable but casual JB (what you are on) is not. Unfortunately, the system which informs the Revenue that a person is in receipt of JB doesn't appear to be able to distinguish between full dole and casual dole. Again, this can be fixed by ringing your Revenue office and explaining.
 
My understanding is they should have been split between us.

I'm also confused about why the Jobseekers Benefit has taken a great big chunk from my tax credits.
 
Nige said:
In relation to the deduction for Jobseekers' Benefit - this is also wrong. Full time JB is taxable but casual JB (what you are on) is not. Unfortunately, the system which informs the Revenue that a person is in receipt of JB doesn't appear to be able to distinguish between full dole and casual dole. Again, this can be fixed by ringing your Revenue office and explaining.
Click to expand...

The "System" is a phone call to Social Welfare who tell the Revenuer what a person is n receipt of. I reckon the Revenuer who made the call didn't realise that casual dole isn't taxable or else the s.w.er who took the call didn't.
Either way, +1 on the "ring Revenue".
Sybil
 
Sorry about the cross over in posts above. I had a reply typed but lost it.

Thanks for your quick replies. I'll definitely be ringing revenue when I get home at lunchtime.

Hopefully it can be corrected easily. I can't afford for my wages to be wiped this month (even with hubby working). It usually goes in the day before our mortgage goes out...
 
the payroll person in husbands company shouldn't have been able to change allocation of allowances without your husband or you liaising with revenue. Anytime I put someone new on our payroll, I can ring revenue to obtain the new employee's allowances and cuts offs but they will not allow me query these in any way, even when sometimes a person is given Zero allowances. In all cases, the employee themselves must ring revenue and sort out their own allocations. I'm surprised that (a) revenue permitted this and (b) that the payroll person in husband's company appears to have taken it on his/her own authority to change a tax agreement between the two of you.
 
I was a bit surprised she could do it to be honest but anyway I rang the tax office at lunch so I'm hoping we're sorted now even though the person I got wasn't very helpful...

For starters the DSFA amount on the tax cert was incorrect, so this has had the effect of increasing our tax credits. I then requested our tax credits be split between us as I think thats best for now (neither of us are big earners, me 15k, him 19k, both part time). It seems there has been an underpayment this year (not sure how) so it seems my income will be reduced to pay some of this back.

I am also a bit gobsmacked at the logic that if you are on Jobseekers benefit and return to work your tax credits are reduced - it just seems unjust.

Anyway I'm hoping we're sorted for now.
Thanks all.
 
It was the husband's jobseekers benefit coded in then, makes more sense.
Glad to hear you're sorted.
 
I recommend getting a "certificate of taxable benefit received" from SW at the end of the tax year to anyone who has been in receipt of Benefit, as the "coded in" amount seldom matches with the amount actually received. You may have received a benefit for a portion of the year and the "coded in" figure refers to the full year.
 
Black Sheep said:
I recommend getting a "certificate of taxable benefit received" from SW at the end of the tax year to anyone who has been in receipt of Benefit, as the "coded in" amount seldom matches with the amount actually received. You may have received a benefit for a portion of the year and the "coded in" figure refers to the full year.
Click to expand...

Thanks for the advice. I didn't know such a cert existed. I'll definitely get onto it because I'm not convinced the information the tax office has is 100% correct.
 
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