Notice of assessment document

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laois1

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Trying to get my head around this years tax return. I find it difficult to follow this "notice of assessment" document which arrives in November . If there are any accountants reading this I have a question in relation to the panel heading "credits/reliefs set against tax on income". There is no mention of the PRSI I paid in my PAYE employment in this section or document at all - should it appear under this column ? or should it appear elsewhere e.g panel 8 - other credits/reliefs ? or on the document at all ?? The only amounts I have listed under panel 5 are :
retention tax credit - 250
Personal credit - 1830
PAYE credit -1830
Health expenses - 78
service charge - 78
Does this sound correct ??
 
Yep that's correct.

If you look at the amount on which PRSI is charged on the assessment you should see it doesn't include your Schedule E income.
 
Do you mean schedule D ? So you are certain that PRSI is not currently payable on rental income ? My accountant has been charging it annually it seems and has calculated it again for this years return. Any advice ?
 
No I don't mean Schedule D.

PAYE Income is assessed under Schedule E. You've asked where / if the credit for your PRSI paid on PAYE employment is, and what I'm saying is that it is ignored in the computing of your liability on the Notice of Assessment.

Lets say you had 50k of income on your P60, and 10k of rental income. And you've paid 5k in PRSI on your P60.

Your assessment will show total income of 60k. Tax is calculated on this, and you get credit for your PAYE paid.

PRSI will be calculated on Schedule D income of 10k (i.e. your PAYE income is ignored, because it's assumed to already have been dealt with through payroll).

It's not your accountant who's charging it, unless he's living in the 1980's he has tax software that he enters the figures into which computes the liability along the lines I just described! And likewise, the Assessment is generated by Revenue's software - if it's applying PRSI to your Schedule D (rental etc) income then it's because that is correct.
 
Ok Mandlebrot. He uses Sage taxpro. I suppose I should have faith in my accountant. I would just like to have a greater grasp of how the system works.
 
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