SW payment not reflected in the Tax credits sent to Pension Payer

[Branz]

This is a general query with the question being how to get the issue addressed without incurring the wrath of either the Revenue or the SW dept.

I do the tax returns for several folk who have retired from AIB and who are in receipt of either an illness or disability payment from SW.

For 2013, 2014 and 2015 in each case the SW payment has not been reflected in the Tax credits sent to AIB, resulting in an underpayment of tax.
In 2013, I have caught it mid year and got it sorted by calling the Revenue,[ which makes me think that its a Revenue problem.] They all paid the arrears mid year and everything was grand till Jan 2014.

I caught it again mid year and paid the arrears on ROS for the individuals: earlier this week one of my friends got a P21 showing under-collection of 2,700 for 2014: the amounts paid via ROS were not credited to it.
The lady in question is of a very fragile mental state so she panicked.

AIB says its a Revenue problem and Revenue say its an AIB problem.

Its clearly a system problem somewhere so any suggestions would be welcome that wont awaken the vindictive side of any of the parties involved.

Thanks as always

 

[Joe_90]

Illness benefit is taxable. According to [broken link removed]

The DPS inform your employer, this is perhaps where the issue arises. Your clients are not employees rather pensioners, therefore the onus appears to be on them to either have their tax credits and standar rate cut off allocated.

 

[Branz]

Thanks, one of them is in this situation since 2000, I have done her tax since 1987 and we never had an issue: PAYE pension and SW, nothing else.
This started in 2013

i agree they are pensioners but its the same payroll system as the main bank does it for the PF.

 

[Branz]

Update from Revenue to one of the gang:
I regret that illness benefit is not automatically included in your tax credits each year, you should contact us at the start of the year to ensure that same is coded correctly.
I have amended 2016 to include your illness benefit and also issued an amended PAYE balancing statement for 2014 giving credit for the amounts of the payments that you made directly.

Regards

Customer Services
South County PAYE

IMO this makes no sense since they get the info from SW so they are just laying in the long grass waiting to **** folk over with P21s and tax demands before Christmas.