EU Deposit Interest - Revenue Reporting

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Corola said:
"Better" in what sense?
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I just mean better for me in terms of how I like to budget my finances. I typically split my money into Needs, Wants & Savings. So by paying back revenue via reducing my tax credits, I am effectively reducing my net salary and taking money away from the Needs and Wants buckets when really it seems more fair if you like that the DIRT on savings should be coming exclusively out of the Savings bucket.
 
I'm doing my return for 2024 through Revenue MyAccount but there doesn't seem to be anywhere to declare deposit interest. I have some interest (under 5k) from Trade Republic that doesn't take DIRT at source. Last year there was an "EU Deposit Interest" option but it seems to be gone this year. Revenue's own manual has screenshots that show completely different options to what their system shows now https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-08/08-04-12.pdf

Anyone managed to do it successfully?
 
"Manage your tax for the current year" doesn't provide the same headings as for previous years returns for some reason.
 
PoundMan said:
I just mean better for me in terms of how I like to budget my finances. I typically split my money into Needs, Wants & Savings. So by paying back revenue via reducing my tax credits, I am effectively reducing my net salary and taking money away from the Needs and Wants buckets when really it seems more fair if you like that the DIRT on savings should be coming exclusively out of the Savings bucket.
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You could just reduce your savings budget to compensate for it. Just think of the money you have saved from not paying it all in one go as pre-saving next year and reduce your saving budget next year by a roughly similar amount. Revenue splitting the payback over 4 years means that you can have the tax owed earn you interest over that 4 years so you are definitely better not paying it back to Revenue in one go when you don't have to.

Financially and monetarily it is better for you to just let Revenue do it their way. You can sort the budgeting thing out yourself very easily.
 
Pay yourself the extra €8.75 per month from your Savings bucket into your Needs bucket and you're in the same position on take home pay, but also earning interest in the meantime.
 
Thanks for the input guys, I appreciate the advice. If my overall savings is increasing every year, then the amount of DIRT I'll owe will keep increasing. If I kept repaying via tax credit reduction would I not eventually run out of tax credits altogether? At that stage would I then be forced to repay via lump sum anyways?
 
Your credits will reduce by more, but each month you'll be paying off the bill from four years ago as well.

So after four years your first DIRT bill will be fully paid off and you'll stay at the same-ish level of four rolling years of credits.

You'd have to be earning substantial amounts of interest to use up all your annual credits, by which time you'd be over the €5000 threshold for Form 12 anyway. At that point you'd be filling a Form 11 and paying your DIRT each year as a lump sum.
 
The current situation where Revenue schedule your payments over four years is effectively Revenue offering you an interest free loan. There isn’t much on offer FOC these days, so no harm to avail of it.

You are of course free to ignore this and pay the whole lot using a Single Debit instruction. This will keep your booking neat and tidy.

To get to a point where your under payments absorb all of your revenue tax credits you would most likely be earning €5k+ pa in EU deposit interest, in which case the issue disappears as you would move to being self assessed and would pay the bulk of the amount due in the year the interest is paid/credited and any balance in the following year.

In any event, the amount you pay is ultimately the same. This is a cash flow issue for you to determine as best suits your needs/wishes.
 
More Form 11 'literacy' questions, I'm afraid.

(1) Does 'Gross Deposit Interest' mean:
The total amount on paper, that was earned before BOI / AIB etc.. removed DIRT at 33% -
or
Is it the amount that ended up in the Deposit account as payment for Interest after DIRT?


(2) Also I noticed that there is also:
Retention Tax Credit - but when I googled this I didn't think relevant, and no idea where is came from.

Thank you all.

Irsh Deposit Interest​

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[td width="203.45px"][/td] [td width="644.8px"]Gross Deposit Interest received on which DIRT was deducted[/td] [td width="203.438px"]Taxable at 33%[/td][td width="203.438px"]€[/td] [td width="23.675px"][/td]
 
ACER10 said:
(1) Does 'Gross Deposit Interest' mean:
The total amount on paper, that was earned before BOI / AIB etc.. removed DIRT at 33% -
or
Is it the amount that ended up in the Deposit account as payment for Interest after DIRT?
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The former.
ACER10 said:
(2) Also I noticed that there is also:
Retention Tax Credit - but when I googled this I didn't think relevant, and no idea where is came from.
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See here:

Who is exempt from DIRT?

This page outlines when you can receive interest without paying Deposit Interest Retention Tax (DIRT-free account)
www.revenue.ie www.revenue.ie
 
ACER10 said:
(1) Does 'Gross Deposit Interest' mean:
The total amount on paper, that was earned before BOI / AIB etc.. removed DIRT at 33% -
or
Is it the amount that ended up in the Deposit account as payment for Interest after DIRT?


(2) Also I noticed that there is also:
Retention Tax Credit - but when I googled this I didn't think relevant, and no idea where is came from.
Click to expand...
As Clubman says, the gross interest is the full amount before DIRT deduction - depending on how this shows up on your statement you may need to do a back calculation. [some of my accounts just show the post-DIRT amount added, some give a note to say "X amount after Y DIRT deducted", or similar.

The retention tax credit is where the form 11 gives you credit for DIRT paid at source. For example, you get €100 in interest, on which the bank automatically deducts €33. The form 11 will show that you owe €33, but give you a credit [labeled as Retention Tax Credit] for €33 since you paid it at source - you'll see this automatically on the Calculate page, you don't need to claim it. So in theory, a zero sum game. The only extra matter is that, depending on your circumstances, you may have to pay PRSI on the full €100 amount.
 
johncb said:
retention tax credit is where the form 11 gives you credit for DIRT paid at source
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Ok.. wow. I understand that so clearly now. Thank you both. I finally got through to revenue. The person helping me googled Retention Tax Credit and wasn't sure either, so she advised me to sign and submit, but that they would put a 'Stop' and check everything for me, before I pay a balance etc.
Thank you both again.
 
dragging this one up as I'm not sure its working ok again

Filling out Form 11 adding in EU/IE interest.

firstly seems that its charging 37% DIRT (admittedly interest/divs are >5k so that may be the reason). Also seems to be increasing USC based on interest.

so 2 questions

1- Is it right DIRT should be at 33% (and 4% PRSI) when other income is >5k (This comment updated from saying 37% DIRT charged)
2- Is it correct that USC is being charged on Interest?
 
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Check the breakdown. Is it actually 37% DIRT or 33% DIRT and 4% PRSI ?

Note that PRSI is payable on all EU interest declared on form 11 unless you are exempt on age grounds.
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yes correct. its 33% dirt and 4% PRSI. My understanding was PRSI is chargeable when income is >5K (in which case I'm in this bucket). Should USC be charged though?
 
Was that not discussed before as an anomaly when filing on ROS? DIRT is listed as 33%, not 33% plus 4% PRSI and possible USC on top.
 
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