PAYE Underpayment for 2007 and 2008.

J

jinx9000

Registered User
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Hello All,

I checked my PAYE Online last month and saw 2 messages from May 2011. One related to an underpayment of €360 in 2007 and another for €400 in 2008.

I was not sent any correspondence at the time and the underpayments where not explained. The amounts have been taken off my 2012 tax credits.

I bought my house in 2006 and claimed Mortage Interest Relief and Rent Relief for 2006. In 2007 I contacted Revenue and told them my situation, that I had to rent becasue my newly purchased house was uninhabitable (1890's terrace which had not been lived in for 10 years, no heating, outdoor toilet, mould etc etc). I spent ayear getting planning permissiona nd overa year renovating it myslef, paying for it with monthly paychecks. As a result I was told this fell under a 'special circumstances' where you could claim both.

Now they are informing me, that you cannot claim both. They have not mentioned the 'special circumstances' clause where I wa sinformed you could (e.g. new build/renovation) nor have they asked me my side of the story.

It would have been fairer for Revenue to ask me why i did what i did, rather then just take the money without informing me.

Im waiting now for their reply. Does anybody have any similiar experince of this issue (somewhat unusual I understand)

Thanks,

Bob!
 
I know somebody who claimed the rent tax credit and TRS in the same year. They claimed the rent tax credit at the start of the year while still renting and then TRS once they purchased their own home. Actually the rent tax credit was mistakenly claimed for the FULL year in question until this was pointed out to Revenue recently and they fixed this. I was surprised that the claiming of both did not trigger an automatic red flag. Might be because the TRS claim was backdated?
 
I don't think you have much defence, to be honest - :(

Quote from Revenue.ie;
A qualifying mortgage for the purpose of interest relief is a secured loan, used to purchase, repair, develop or improve your sole or main residence, situated in the State. You can claim tax relief in respect of the interest paid on this loan or mortgage.

Rent Relief for Private Rented Accommodation;
This relief applies to tenants who pay rent for certain private rented accommodation used as their sole or main residence.

Subsection on Mortgage Interest Relief;
If at any point you have a mortgage and are in receipt of Tax Relief at Source you should advise your local Revenue Office immediately as you may no longer be entitled to Rent Relief and your Tax Credit Certificate might need to be adjusted.

So it sounds to me like you can't claim both. As far as "special circumstances" goes, that sounds like something taken from an Iain Banks novel. Unless you have it in writing of course. Even then, Revenue famously won't stand by any advice you get from them. They'll just say you should have gotten professional advice from an advisor.

However it sounds to me like you can claim one OR the other, so do up your taxes and make sure that they are charging you the least amount possible - probably a refund on the rent tax credit.
 
TRS and Rent Relief

We were entitled to TRS and Rent Relief when we were rebuilding our home so it is possible under certain circumstances i.e. building, renovating a home. I was advised that it is possible for one year only so if you claimed it in 2006 my understanding is that you would not be entitled to claim it for any other year.
Tommygirl
 
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