DerekMP
Registered User
- Messages
- 3
Hi, First of all I use Revenue Online for all my tax dealings. I will try to keep this as simple as I can.
I'm on full pension (less than €30K, taxed at 20%) from HSE since retiring in 6/2018 & a monthly private pension (€16.50 Gross). This small pension was taxed at 40% & last year when I cashed in half the investment it too was taxed at 40%. Since then (7/2019) I've been on to Revenue trying to have it taxed at 20% as I'm allowed to earn up to €34,144 at 20%. My combined HSE + Private pensions are below that figure.
In 11/2019 Revenue informed me that my "tax credits and cut off point were all allocated to HSE employment" & if I wanted "some of them transferred" to my private pension I should confirm that with them. However, Revenue also said 'this would mean that I would pay higher tax on my HSE pension'. I didn't understand this as my combined income was within the 20% band allowance. I tried to get an explanation but to no avail. I gave them permission 3/2020 to transfer credits and cut off point as outlined.
However, in 1/2020 the tax on my HSE pension increased by €71 per month, a 36% increase; my private pension tax reduced by €3 (income now €12 instead of €9 approx per month). No one in Revenue has been able to tell me how this came about.
At the end of 3/2020 Revenue informed me that my Tax Credits were amended for 2020 & a refund for 2019 would issue shortly. I've heard nothing from them since.
I do understand there might well be delays now due to COVID-19. I can live with that but I'm at a loss to understand how my tax could go up so much & without warning.
I'll leave it there. I would be grateful for any assistance in understanding this.
Thank you
Derek
I'm on full pension (less than €30K, taxed at 20%) from HSE since retiring in 6/2018 & a monthly private pension (€16.50 Gross). This small pension was taxed at 40% & last year when I cashed in half the investment it too was taxed at 40%. Since then (7/2019) I've been on to Revenue trying to have it taxed at 20% as I'm allowed to earn up to €34,144 at 20%. My combined HSE + Private pensions are below that figure.
In 11/2019 Revenue informed me that my "tax credits and cut off point were all allocated to HSE employment" & if I wanted "some of them transferred" to my private pension I should confirm that with them. However, Revenue also said 'this would mean that I would pay higher tax on my HSE pension'. I didn't understand this as my combined income was within the 20% band allowance. I tried to get an explanation but to no avail. I gave them permission 3/2020 to transfer credits and cut off point as outlined.
However, in 1/2020 the tax on my HSE pension increased by €71 per month, a 36% increase; my private pension tax reduced by €3 (income now €12 instead of €9 approx per month). No one in Revenue has been able to tell me how this came about.
At the end of 3/2020 Revenue informed me that my Tax Credits were amended for 2020 & a refund for 2019 would issue shortly. I've heard nothing from them since.
I do understand there might well be delays now due to COVID-19. I can live with that but I'm at a loss to understand how my tax could go up so much & without warning.
I'll leave it there. I would be grateful for any assistance in understanding this.
Thank you
Derek