Rabo charged me 27% dirt on interest for 2010 instead of 25%

27% tax on 2% versus 25% tax on 3.1%... ahhh... the joys of being patriotic and sticking with Anglo ;) happy new year everyone!
 
We've also been charged 27%. Surely it must be a mistake. The operation date is 31-12-2010. Not much difference in my case but, since I'm sure they won't give everybody's overcharged moneys to charity, I prefer to have it in my account!
 
I was also charged 27% dirt by Rabo.
I have sent them a message via their message feature on the online account.
 
Would the affected people be happy if Rabo reduced the DIRT only for those customers who complained?, or would people be asking that the correct rate is applied to all customers?

I feel it may be hard to correct this,.. I believe it hinges on whether or not the Fin. Reg. takes up the case... and he may not.
 
DIRT is charged based on the pay date, it is not accrued like interest.

I know the Rabo entry states December 31st 2010, but was the interest paid or visible in your account on December 31st 2010 or was it only visible on January 1st 2011 ?
 
Is it?

PTSB put through my DIRT/Interest on my account which is dated paid 4th jan 2011 - but it was put through at 25% dirt.
 
Yes it is. For example, if you have a 2 year term deposit and the maturity date is January 15th 2011 then you will pay 27% on the interest for the full 2 years.
 
This is a bitter pill to swallow for anyone caught by this particularly by the 31st/1st. Later on you could understand.

Anyone know what Northern Rock has done!
 
Interest has now appeared on my N/R A/c today, 02/01/11, entry date is 31/12/10, DIRT was deducted @ 25%.
 
CiaranT said:
I know the Rabo entry states December 31st 2010, but was the interest paid or visible in your account on December 31st 2010 or was it only visible on January 1st 2011 ?
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I don't see why there should be a difference. Interest were showing on 1st January 2011 (pls note: Saturday which is not even an ordinary working date) with 31st December 2010 as effective (i.e. official/legal) date of accrual.

I just want my difference of 2% back, the law is at my side. I'll also have a chat with the Financial Ombudsman, this is not fair. Thank God I had the calculator.

It's not such a big difference in terms of money of course... But in Italy we say "clear pacts, long friendship" and I'm a Godfather... :D
 
DIRT was deducted at 25% on my Anglo Premium Demand A/c and my Anglo 1 year fixed term reward a/c opened last year shows accrued interest net less the 27%.
 
Godfather - I agree that in theory it should not make a difference. In reality, banks apply DIRT using different pay date methodologies.

Let us all know how you get on with your complaint with Rabo.
 
CiaranT said:
In reality, banks apply DIRT using different pay date methodologies.
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I find this very strange, surely this tax should be more clearly defined and standardised across all institutions.
My Rabo account had DIRT deducted at the 2011 rate too, so probably all accounts were.
The obvious implication is that it will be done at the 2012 rate for interest earned in 2011.
 
I requested clarification also, as I have suffered the same wrt Rabobank DIRT.

That I would be charged 27% DIRT for interest accrued in a year where 27% DIRT was not yet applicable appears to me like a retrospective taxation.
 
I contacted Rabo (long waiting probably because of the issue) and was said that the issue is being corrected as we were speaking. I also suggested them to issue a public apology on their website, I got a positive reply about it as well.
 
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