Does "witholding tax" on share dividends cover total PAYE tax liabilities

F

Flush

Guest
I'm paying witholding tax of 20% (not 23%) on share dividends at source.
Do I have any further liability as a PAYE taxpayer on the higher rate.
 
Flush said:
Do I have any further liability as a PAYE taxpayer on the higher rate.
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Yes - 22%. You must declare the dividend income and pay the balance of the 42%. I'm not sure if PRSI is also due.
 
For Self Employed, Revenue automatically pick up the levies - as distinct to full rate PRSI - They used to ignore PAYE (as it included themeselves) but I understand the beautiful automated system now picks it up.
 
You must declare the dividend income and pay the balance of the 42%.
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This is correct although if the dividend amount is small they will most likely not ask for any money from you. So in effect you are simply declaring your dividend income. This is what the revenue told me when i rang them last week(couldnt get the answers on this board). They also dont care about what currency conversion you use which is nice.
 
keybored said:
This is correct although if the dividend amount is small they will most likely not ask for any money from you.
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Are you sure about that? Even if Revenue said this to you I find it hard to believe - and as many threads have already state Revenue can and do make mistakes and will not accept acting on such mistaken info as an excuse for making incorrect returns.
They also dont care about what currency conversion you use which is nice.
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Again I don't believe that this is the case. You must use an accurate currency conversion - e.g. [broken link removed] or whatever. If they did happen to audit you and the exchange rates were outrageously inaccurate then they would presumably be none to impressed.
 


They actually go so far as to publish a schedule of exchange rates, for each tax year, that they want you to use i.e. average rates. Should be available on revenue.ie
 
Yes - but while you can use Revenue rates or Central Bank rates and maybe other rates you cannot simply pluck a rate out of the air as suggested by keybored above.
 
Does anyone know if the exchange rates used by revenue, or the Central Bank rates listed above by Clubman, reflect the interbank rate or the rate that you and I would actually get at the banks (always a few percent lower) - and whether it's legitimate to use a typical retail rate in tax return calculations?
 
while you can use Revenue rates or Central Bank rates and maybe other rates you cannot simply pluck a rate out of the air as suggested by keybored above.
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Clubman, i did not suggest this even though re-reading it i see i was not clear enough. The revenue told me to look up the conversion rate myself so i meant they do not care if i take the rate on Monday for example and enter my return then or wait until next Friday etc because obviously you could get a more favourable rate depending on the day.

Anyway i have declared my tax on ROS, received my P21 and they are not collecting the tax due "at this time" according to the letter.
 
agree with keyboard. declared divis on vodaphone, bank of ireland and also interest on a british loan note. the brits had already deducted 20% interest on the loan note so I would have been due this back but the revenue just accepted it as tax paid. also didnt bother with the difference in the dividends by vodaphone ( small ) and bank of ireland ( small but still would have had a difference of €40) downside: cant get them to accept the credit union dividend isnt taxable anymore. as far asaik the dividend is now taxed at source.
 
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