deposit interest and revenue

H

hgf

Registered User
Messages
30
hi, hope smeone can help explain something to me.
i heard that revenue is making banks and building socities give over the details of poeple who have earned more than 600 (cant remember the exact figure) on deposit interest in the previous years. i believe this is to be done in march.
i have always been a saver and paid DIRT through my savings accounts, but as my savings have inceased they are now making more than 600 a year in interest.
what will the repercussions be of this?
will revenue come looking for more money on top of the DIRT i pay?
and if so, how much?
will there be fines?

just want to know how big deal this is really. thanks in advance
 
Irrespective of how small the amount of interest earned is and that DIRT is deducted, the interest still needs to be declared as income on your annual Form 12 (PAYE) or Form 11 (self-employed).

This page on the Revenue site - http://www.revenue.ie/en/tax/dirt/index.html

A sentence from that page states - "D.I.R.T. is a final liability for income tax purposes, i.e. the payment of retention tax at the standard rate by individuals liable to income tax at the higher rate is regarded as satisfying the individual’s full liability to this tax."
 
mathepac said:
A sentence from that page states - "D.I.R.T. is a final liability for income tax purposes, i.e. the payment of retention tax at the standard rate by individuals liable to income tax at the higher rate is regarded as satisfying the individual’s full liability to this tax."
Click to expand...

So although it still has to be declared, a second tax (income tax) is not taken from it?
 
There is no further tax to be paid, but I think the reason for revenue to keep a check on interest earned is in order to see where the money came from in the first place: ie. is it undeclared money
 
callybags said:
There is no further tax to be paid, but I think the reason for revenue to keep a check on interest earned is in order to see where the money came from in the first place: ie. is it undeclared money
Click to expand...

Excellent. Thanks.
 
Correct AFAIK, although bear in mind that from this tax-year DIRT is 23% (while deposit interest rates are generally falling) and standard rate income tax is 20%.
 
thanks for replies,
my savings are all from my wages over the years (i.e taxed money)
so basically they won't be looking for extra money off me, but i must declare it. ??
have never filed a tax return before as i am a paye taxpayer and have not ever had a need.
i havent declared my interest for 2008 but have record of what i earned in my savings book.
so would you think its better ito declare it now, or wait for them to contact me in March???
 
You don't have to do anything. There is no obligation to file a tax return just to declare deposit interest. And as your savings do not represent undeclared income you have nothing to worry about, even in the unlikely event that you are asked about it by the revenue.
 
What about where you have deposits in a UK bank and they are deducting 20% tax from your interest.
Do I have to pay the Irish Government the remaining 3%?
Why would I have to do that, as the money is in the UK and may only ever be used in the UK.
 
You must log in or register to reply here.
Back
Top