Confusion over Tax payments Do I owe more?

M

MsPBL

Registered User
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Hi All,

I have a query. From Feb 05 I have worked as a privatley employed nurse with two medical centres. I was working 2 days in each place and split my tax credits 50/50.

One month ago I took up a full time post in one of the centres. I dually recieved my P45 from my old employer and gave it to my current employer. For the last 4 weeks things have not been sorted and this week I recieved my letter from the revenue telling me that all my tax credits have been shifted to my full time post.
While I was waiting for this letter to come from revenue I was being taxed at a higher rate and this week was expecting a refund. This week I got paid about 50 euro extra and when I queried it with the woman who does the wages she told me that it was a bit complicated and that I owed the Revenue 700euro!
She told me if I wanted my refund I would have to claim it next year when I got my P60. When I asked was I now paying extra until I repaid the revenue she said no that this was how it was. I am earning about 80-100euro less per week than I was expecting. Does anyone know what is going on or has someone not looked after my tax payments as they should have.
I am so confused
Thanks
 
Sounds like your "new" employer is still operating the 1/2 share of tax credits and lower rate band.

Ring the Revenue and get a tax cert issued to you to give your full time employment full tax credits and rate band - this should sort it out.
 
Thats what I did, she is working off my new tax cert. I thought that if you owed tax, they would contact you!
 
MsPBL said:
I thought that if you owed tax, they would contact you!
Click to expand...
They can contact you any time, but that doesn't mean that they will contact you.

If you wish to claim back overpaid tax you have a four year period to make back claims. For any underpaid tax, revenue can contact you any time to request the payment, no time limit. Best to get it all sorted now to avoid any problems down the line. Revenue don't keep a day to day eye on all of our accounts, so they won't be contacting you in relation to this matter, at least not for now.
 
I contacted revenue and as I thought I dont owe them anything, they owe me 800, so message is, dont trust the person who does the wages!!
 
there might be a 'cash flow' problem with the new employer ie paying you €800 cash when it's the revenue that owe it to you.
 
I bet the the previous (P45) Pay and Tax were entered on their payroll and they just left the Tax Credit and COP as is, i.e. 50% of full allowance. Just insure that Revenue know you want to transfer all your allowances to the one employer. The payroll will refund the extra tax once the correct figures are entered. Classic case of the payroll clerk not understanding the system.

Towger.

BTW. It should not cause a cash flow problem (unless there are only one or two employees), as the employer just pays €800 *less* PAYE to Collector General at the end of the month. I don't think I would want to be working for a company where €800 causes a cashflow problem.!!
 
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