Hi,
My brother works for a county council and they realised in 2018 that he was on the wrong pay since 2014. He would have mild learning disabilities and wouldn't have realised any of this. They put him on the right pay and gave him a lump sum payment for the backpay he was owed. The Revenue then taxed that at the higher rate.
I contacted Revenue on his behalf about getting his backpay fairly taxed, because if he'd been paid correctly he'd only have paid the lower rate of tax on all of it. Revenue asked for a breakdown of how much he was underpaid each year which was given but they are now refusing to make any adjustment further back than 2017. So, for 2014, 2015 and 2016 his backpay is all taxed at the higher rate.
Their rules on the basis of assessment changed in 2018, with 2017 as a grace period, so that taxes are now due when pay is actually received. This was to prep for PMOD and there's a few basic exceptions being made with the new rules but nothing that covers backpay:
I roughly calculate this is worth about 5k to my brother. I really feel this is unfair to him that through no fault of his own he's getting shafted.
If anyone has an idea on how I could pursue this any further, I'd appreciate it cos I'm drawing a blank right now.
Cheers
My brother works for a county council and they realised in 2018 that he was on the wrong pay since 2014. He would have mild learning disabilities and wouldn't have realised any of this. They put him on the right pay and gave him a lump sum payment for the backpay he was owed. The Revenue then taxed that at the higher rate.
I contacted Revenue on his behalf about getting his backpay fairly taxed, because if he'd been paid correctly he'd only have paid the lower rate of tax on all of it. Revenue asked for a breakdown of how much he was underpaid each year which was given but they are now refusing to make any adjustment further back than 2017. So, for 2014, 2015 and 2016 his backpay is all taxed at the higher rate.
Their rules on the basis of assessment changed in 2018, with 2017 as a grace period, so that taxes are now due when pay is actually received. This was to prep for PMOD and there's a few basic exceptions being made with the new rules but nothing that covers backpay:
I roughly calculate this is worth about 5k to my brother. I really feel this is unfair to him that through no fault of his own he's getting shafted.
If anyone has an idea on how I could pursue this any further, I'd appreciate it cos I'm drawing a blank right now.
Cheers