I am a person aged 56, single, earning more or less average industrial wage on my main employment.
5 years ago, I cashed in a pension from a previous employer, where I had been for 9 years, in order to get additional funds I needed towards my first house purchase. The lump sum supplemented some savings to make up the deposit, and the "pension" part comes in the form of an annuity managed by Irish Life, which amounts to €112 per month (or 1344 per year).
Up until now, I've not had a problem - the revenue has treated my main employment as my main employment, allocating all of my credits and rate bands to it, and treating the pension as additional income, taxing it at full rate. That was fine, as I got taxed "normally" on my main income, and then full rate on the pension, which is fine.
However, I changed jobs last month.
Revenue issued a new tax credits certificate, allocating all of the tax credit and rate bands to the pension, and zero to my main employment.
I went onto Revenue online, and tried to change this, but for some reason the system won't allow it, and keeps defaulting to the same position. I asked for a manual intervention to change the split, and explained that I will essentially waste my 3,500 tax credit and 36,000 20% rate band on an income that only amounts to 1,344 a year, while I will be paying 40% tax, 8% USC etc on every cent of my main employment.
They notified me today that they had issued a new tax credit statement - and i logged on and looked at it - and it is unchanged, everything goes to the pension, and zero to the main employment.
Now I know I'll presumably get any overpayment back at the end of the year, but in the meantime this is a serious issue for me - it will drastically reduce my take-home pay to the point where I won't be able meet my needs.
I'm planning to contact revenue on Monday morning and see if I can get in touch with a human rather than an automated system to make my case.
In the meantime - has anyone here experienced this before, or have any advice? I'm quite worried.
Thanks GCDM64
5 years ago, I cashed in a pension from a previous employer, where I had been for 9 years, in order to get additional funds I needed towards my first house purchase. The lump sum supplemented some savings to make up the deposit, and the "pension" part comes in the form of an annuity managed by Irish Life, which amounts to €112 per month (or 1344 per year).
Up until now, I've not had a problem - the revenue has treated my main employment as my main employment, allocating all of my credits and rate bands to it, and treating the pension as additional income, taxing it at full rate. That was fine, as I got taxed "normally" on my main income, and then full rate on the pension, which is fine.
However, I changed jobs last month.
Revenue issued a new tax credits certificate, allocating all of the tax credit and rate bands to the pension, and zero to my main employment.
I went onto Revenue online, and tried to change this, but for some reason the system won't allow it, and keeps defaulting to the same position. I asked for a manual intervention to change the split, and explained that I will essentially waste my 3,500 tax credit and 36,000 20% rate band on an income that only amounts to 1,344 a year, while I will be paying 40% tax, 8% USC etc on every cent of my main employment.
They notified me today that they had issued a new tax credit statement - and i logged on and looked at it - and it is unchanged, everything goes to the pension, and zero to the main employment.
Now I know I'll presumably get any overpayment back at the end of the year, but in the meantime this is a serious issue for me - it will drastically reduce my take-home pay to the point where I won't be able meet my needs.
I'm planning to contact revenue on Monday morning and see if I can get in touch with a human rather than an automated system to make my case.
In the meantime - has anyone here experienced this before, or have any advice? I'm quite worried.
Thanks GCDM64