How is the Retention tax credit calculated on ROS

[hastalavista]

Just completing, off line, a pre-populated Form 11 for a friend and the calculation section throws up a Retention tax credit of 715 euro after I have filled out all the bits.

Cannot find anything on Revenue.ie as to how it is calculated..

[ "Retention Tax credit" site:revenue.ie] yields nothing

As she is due a refund I need to make sure its correct.

Thanks

 

[T McGibney]

Deposit interest - credit for DIRT deducted?

 

[hastalavista]

Yep 2860 by 25%=715
So Deposit interest is now taxed at the higher rate! {This is wrong as explained below]



I don't have any deposit interest myself so only remember it for dividend income when banks paid dividends

Many thanks

In passing whats the benefit of the PAYE/Levy etc figures being in the pre-populated form when you have to key them in from the P60/levy papers?

 

[T McGibney]

Yep 2860 by 25%=715
So Deposit interest is now taxed at the higher rate!

No its not. If you look closer at the figures, you should see that the interest will not be attracting a tax charge at the higher rate. The standard tax band is adjusted upwards to ensure this.

 

[T McGibney]

In passing whats the benefit of the PAYE/Levy etc figures being in the pre-populated form when you have to key them in from the P60/levy papers?

Its a hell of a lot handier to have them in the pre-populated form if you don't have the P60s & levy certs

 

[hastalavista]

No its not. If you look closer at the figures, you should see that the interest will not be attracting a tax charge at the higher rate. The standard tax band is adjusted upwards to ensure this.

Indeed as follows
Relevant Rate 2824 @ 25% = 706.00

Missed this


Many thanks