PAYE online Verification

Hi

I have been selected for verification by revenue, probably because I submitted an unusually high medical claim, I had lazer corrective surgery on my eyes at a cost of 4200 of which I have receipts for, however my total claim is about 4900 of which I seem to be shy about 500 in receipts.

I can't explain the shortfall of 500, I rang my doctor looking for a record but according to him I didn't see him in 08 despite having one receipt from him and remember seeing him at least once probably twice more.

What happens next? If I've over claimed (which certainly wasn't deliberate) I'm happy to pay back. Will this leave a bad record against my name with the revenue commissioners?


Thanks

B2

Do you have a copy of the MED1, what heading were the rest of the 500 in? Is it possible you had physio or a MED2 dental or drugs receipts ( you can check with your pharmacist on this and they can reprint a years record if needed ) .

If you cannot produce any receipts or explanation then Revenue will usually reduce the claim to that backed up by receipts. You will unfortunately then owe back tax on the 500 at either 20 or 41% whichever is your marginal rate. If this produces an overall underpayment on the year they will usually collect that by reducing your tax credits in a future year. However, if it is a small underpayment ( say the 500 is at 20% leaving 100 under ) then they might defer collection until a future return is filed and then collect from that.

If your claim was through self-assessment (and not PAYE) then you will have to pay the tax due on demand.