Revenue asking refund of 15K

S

smohapat

Guest
Hi there..

I am in a big mess and would appreciate any good advice.
I got married in 2003 and had taken Tax Credits for Married Individual any my spouse was not working then.

My spouse started working in late 2004.
We both have been working since last 6 years as regular PAYE employee and Tax deducted at source.

Last week my spouse changed jobs and we had to fill in a form to inform Revenue which we did.

Today we get a series of letters from Revenue stating that Tax due for the last 6years totaling to 15K.

We have just bought a house and down to bare bone and it is a big shock.
I would think that way back in 2004, my spouse may have been registered as Single Individual and myself/revenue didnt change the Tax Credits for myself.

But as normal PAYE worker we kept getting our salary without any doubt that something was wrong.

Not sure how do we speak to revenue. It was not something I would do and dont have that much money to pay Revenue.

Any advice, please to help me. I dont want to be in bad books of Revenue but its not something I did in purpose.

Thanks
 
You should be able to work out a payment agreement, where they will take it over the course of maybe a few years, rather than straight away, probably through decreasing your tax credits.
 

Is their any breakup on what what makes up €15K-Is their any interest included?

I would advise you go to someone maybe an accountant or someone would good knowledge that would review revenue letter/copy of assessments and come up with repayment plan/ different methods of repaying via cash/credits

You would want to do a few computations first before going to revenue so you know what future wages would be if credits/bands restricted.

Can you both afford a wage reduction in future years. Have you both claimed everything in them years. Double check both claiming paye credit as well
 
Hi..

I am looking at the calculations but I guess I need some expert advice as to how do I approach revenue.

I believe the major issue of discrepancy was ->
[A] I have been on Married Tax Bands / Tax Credits before my spouse started working.
When my spouse started working, we would have put her as Single but for some reason, I didnt get myself into single.

Even Revenue didnt notify us.
Now when we fill in form for change of Employment with my spouse filling in all details. Revenue figured out that Tax Credits / Bands were incorrect for the last 6 years. Hence they have given Letters for last 6 years asking us to pay back. Totaling 6 years the figure comes about 15K.

I would not have so much money to pay back. Dont really know if Revenue negotiate or can they adjust Tax Credits for n number of years.
I think its my fault, I should have been seeing my revenue letters. Its just that I never really bothered.

In terms of Claims from Revenue, I would have claimed from Medical Receipts and Bin charges.
 
Unfortunately the connection between you and your spouse does not appear to have been properly set up in 2003 when you married. Revenue treated you as married and her as single. The only option now is to try and get an instalment arrangement or deduction from tax credits over a number of years. You need to speak with someone in Debt Management in the Collector General's office.
 
Hi..

Would any of you have information if revenue will facilitate repayment over the number of years.

Should I speak to a few Tax Consultants..If yes whom do I speak ?Searched the web and tried contacting a few but they said they dont deal with such issues.

Revenue have sent the notice asking for payment within 30 days else they would take action. Its just so painful to get to know about this and huge sum of money accumulated over the last 6 years. Wondering as to how come revenue didnt rectify it and all of a sudden asking for such a huge sum.
 
Does the notice have a contact name on it, is it just a notice or a letter. Revenue do accept instalment arrangements. You need to speak with someone in the district that issued it and get a contact name/number from them for someone in debt management. You then need to put the case to them for an instalment.
 

Dont worry about 30day thing, more than likely computer generated.

Most accountants out their should be able to help you with above.

Important thing is to get someone to look over all assessments to see they are correct or incorrect

them

get a few computation done to see how you can repay say over 3 years

them

approach revenue via letter maybe with you proposal to deal with it, from what i see via the way thay handle post it could take months to deal with
 
smohapat said:
Hi..

Would any of you have information if revenue will facilitate repayment over the number of years.

.
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we owed revenue some money about 5 yrs ago, I think it was in the region of 3k. Revenue reduced our credits spread over three years. I think I just wrote a letter requesting that they do it this way. There was no hassle at all and at the end of the 3 yrs our credits were corrected.

You really have to keep an eye on revenue though because at the end of the day, any shortfall must be repaid and it doesn't matter if it was you, your employers or revenue who made the mistake. The onus is on the taxpayer to check and recheck. best of luck.
 
15K seems very high to me (as a non-expert). You certainly need someone to check these figures carefully. Sounds more like more like 10K - 11K at a rough figure
 
If you ring the revenue they will reduce your tax credits. A friend owed they revenue €3k due to been on the wrong tax credit and they agreed to spreed the repayment over three years reducing his tax credits by a €1k a year. But as stated above get your figures checked as the revenue do make mistakes.
 
This has happened a few other married couples who were given the same tax credits / allowances as yourself OP .

The error occurs because 2 single people have different PPS numbers . - When you get married , the tax office gave you a marriage tax credit certificate under your own PPS no. and the tax office also continued to give your spouse a Single tax credit using her PPS No.

This would of course result in a large underpayment when it is discovered ( in your case after 6 years )

But the error would have been on the Revenue office originally, however as 'thesimpsons' said above , that the onus is on you to check and re-check.

You now need to ask revenue for a balancing statement for each year as a married couple .

First of all re-check you circumstances and earnings for each year .:

1. Did ye live as a married couple each year
2. Did you live separately at any stage (
3. Were your earnings over the threshold to claim Home Carer Tax Credit
4. Are all other claimable tax credits included

It is absolutely unfair that the tax office can go back to 2003 , and yet if you lodge a claim with them you can only go back 4 tax years .

Believe me , there are other married couples unwittingly in the same situation .
 
DB74 said:
Why are you asking this? For one-parent credit or something like that?
Click to expand...

The general rule is that if your circumstances change , then so do your entitlements .

The OP has asked for advice , and he needs to check his circumstances over the last 6 years .
 
Ask revenue for balancing statements for each year and compare them to P60's if you have them.
Check that the credits are correct especially the earlier years for interest on mortgage, VHI etc
Check that the Std Rate Cut off points are right
 
Willing to Help

Hi there

I work as an accountant and I sympathise with your situation. I would recommend that you contact an accountant or tax advisor and explain your situation. You may need to check with a few but one of them should be willing to take an initial look at it for a small fee without any further committment from you to use their services in this case. Could be money well spent. A quick glance by an experienced person will tell if the correct standard rate bands and tax credits were included in Revenues calculations.
Some matters also worth considering:

1.Have either of you made private pension or prsa contributions
2.Have you claimed your TRS credits re your home mortgage
3.Are either of you entitled to flat rate expenses in your employments
4.Did either of you incur expenses in carrying out your employments
5.Review all tax credits available on revenue website in case you missed any eg trade union subs, tuition fees etc

If yes to any of the above it might be possible to reduce the underpayment but you should get advice as its such a large amount.

Revenue should work with you by reducing your tax credits over a number of years.

Hope you have some success with this.

Regards
 
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