Indo - "Revenue is chasing tens of thousands of pensioners over owed tax"

the area around where I live I hear rumblings from people who retired from the public service and went back working again getting hit for income tax they were not expecting a few years down the road,
They never would have returned to work if they realized the amount of extra tax they would finish up paying,

I get it hard to understand how little the understand how income tax works,
 
I never cease to be amazed how many people don’t understand that Income Tax applies to INCOME - all income, wherever that income comes from. That includes any Social Welfare income.
Social Welfare payments are paid gross by the Dept of Social Protection (they don’t have the authority to deduct tax), so it’s up to individuals to declare that income to Revenue (who do the tax thing).
The current letter campaign is reminding people that if they have other income (whether SW income, work income, deposit interest etc) then they must make a tax return. The current issue seems to be that some people didn’t declare (and pay tax) that they are getting a SW pension.
 
In the article mentioned here:

Indo - "Revenue is chasing tens of thousands of pensioners over owed tax"

https://m.independent.ie/business/money/pensioner-furious-over-threatening-demand-from-revenue-for-her-to-file-tax-return/a1671052623.html
www.askaboutmoney.com
I don't understand why Revenue are ostensibly demanding a return within a month for the woman's 2022 income. Why doesn't the usual 4 year "grace" apply here so that she could do it any time before the end of 2026? Does the 4 years apply to both PAYE and self assessed taxpayers, or only the former? If it only applies to PAYE then maybe this is another hint that this letter may only be going to self assessed taxpayers?

It's a pity that someone - ideally Revenue but maybe a decent journalist - couldn't clarify the actual details of the whole issue. In the absence of such clarification it seems like there's even more FUD than necessary...
 
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ClubMan said:
I don't understand why Revenue are ostensibly demanding a return within a month for the woman's 2022 income. Why doesn't the usual 4 year "grace" apply here so that she could do it any time before the end of 2026?
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That's a grace period for claiming tax refunds. Taxpayers - a category that includes unwitting tax dodgers - must file a return by end-October (or mid-November if using ROS) of the following year.
 
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torblednam said:
the F11 return is pre-populated with DSP pension income for your information to assist you in completing the form, but you have to undertake some form of action to formally confirm / enter the amount of the income in your self-assessment. It seems that you didn't do that, and made a self-assessment that omitted the income. It's a fundamental of a self-assessment system that the taxpayer has to enter (or perhaps transcribe in this case) their income figures and be responsible for making a complete and correct self-assessment
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I have just checked my Form 11 and yes, there is indeed a box where you have to enter the pension income, indicated a little higher up the form.
I have resubmitted now and the completed form shows higher total income and higher tax due, as expected Sorted. Thanks for your input.
 
Conan said:
Social Welfare payments are paid gross by the Dept of Social Protection (they don’t have the authority to deduct tax), so it’s up to individuals to declare that income to Revenue (who do the tax thing).
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Every employer in the country has the authority and obligation to deduct and remit tax on their employees' wages under the PAYE system. Every private pension company paying out pensions has the same authority and obligation to deduct and remit tax on their customers' pensions in payment. Retired public servants have their taxes deducted and remitted for them under the PAYE system. I fail to see why the Department couldn't do the same for the State pensions.
 
I reckon I’m retired longer than most on this forum. I’m long past the monthly meeting for Senior Beings in my local GAA club. However, I keep in touch because most of them are fairly humorous. Most of them are meaning to update their Revenue obligations but for some reason couldn’t be bothered. This will cause some ongoing worry for them eventually. Therefore, once again I am appealing to people to complete their tax claim on-line every year. Life is too short, don’t make it shorter.
 
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