Repayment of unpaid Tax

[jumper1]

Hi , friends of mine got married a number of years ago . Both worked and opted for joint assessment and informed the Revenue of this. Unfortunately it turned out that the Revenue half updated their details. The Husband was being taxed as married person (earning more) and the wife was being taxed as a single person.

In Oct of 2009 the Revenue found the error after the Wife wanted to confirm that they were being treated as a married couple. It was agreed after the revenue admitted it was partly their fault so 75 % of the tax due would be paid back by the Husband (the only worker at the time ) at a rate of 40 Euro a month for the next 5 years.

The wife has now taken up a Full time job again and will earn up to 15000 euro a year. I was wondering can she use her left over tax Credits, if she has any, to pay the money due back to the Revenue rather than leaving the Husband to pay the money back.

Regards Jumper 1

 

[Irish Spirit]

she will have no left over tax credits. i would say nothing to the revenue as they may seek the balancing 25% as she now has an income and if the couple so wish they could make an arrangement between themselves. her giving her husband say €20 a week over the kitchen table is the same diff as the revenue taking it from her pay cheque rather than his.
now if they are charging interest on the repayment plan it might be advisable to contact them to see if you can repay it sooner and save on the interest. it wud be bad form if they were charging interest when they admitted it was partly their mistake. they prob arent.