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?
 
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.
 
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