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Accountant has informed us that my Husbands employer "who knows I can no longer work outside the home and also knows we have other taxable income" has changed my Husbands tax payments for 2016 claiming my tax credits without any consultation with my Husband, this has saved the employer approx €10,000 in taxes but cost us €3400 in tax rebate.
They (employers) have done it, his 2016 P60 clearly shows he was taxed as a married man, all previous P60,s as a single Man. Does he have any right to demand the tax rebate he would have normally recieved on his end of year taxes from his employer.Only an individual can order Revenue to change their tax credits. An employer cannot do this and Revenue will not entertain any application from an employer or third party to this effect.
I've seen it also. My employment was transferred (toupee) between 2 companies a few years ago, but there was some mix up and Revenue had no record of me working. the following year Revenue automatically allocated all our tax credits to my wife.I have seen lots of cases that the Revenue will unilaterally amend a cert where one spouse is issued with a P45 and does not take up employment elsewhere.
They (employers) have done it, his 2016 P60 clearly shows he was taxed as a married man, all previous P60,s as a single Man.
Accountant has informed us that my Husbands employer "who knows I can no longer work outside the home and also knows we have other taxable income" has changed my Husbands tax payments for 2016 claiming my tax credits without any consultation with my Husband, this has saved the employer approx €10,000 in taxes but cost us €3400 in tax rebate
his employer saved €6,900 plus the Employers PRSI.
How is the Employer benefitting from this? Surely there is no change on their end?
edit:
What I mean is, if his net pay on his P60 is less than what he received surely he should take this up with the employer? Am I missing something?
The reality is that the net pay is the same its the gross pay that is different.
So in this case the OP husbands Gross pay is lower by approx €7,000 with no refund where as they would at the end of the year they submit a tax return and claim back approx €3,400 in tax overpaid being the benefit of her not working.
The reality is that the net pay is the same its the gross pay that is different.
So in this case the OP husbands Gross pay is lower by approx €7,000 with no refund where as they would at the end of the year they submit a tax return and claim back approx €3,400 in tax overpaid being the benefit of her not working.
This goes on a bit in the real world. Any employer who facilitates it is stupid as sooner or later they will be taken to the cleaners if the employee has sufficient cop-on to game the arrangement.Very strange though, were payslips not issued? Would they not have a contract stating how much they were being paid gross? I didn't think someone could be paid/contracted to a Net of taxes wage
Your husband really needs to negotiate a gross salary like everyone else. The smoke and mirrors deal he has now is bad news all around and may give rise to Revenue problems if gross pay is being suppressed as was suggested by another poster above.Can I also add the net pay situation arose because my Husband was head hunted, his employer had asked him several times to join his team for his new venture which by the way has been a huge success. Husband was asked what his take home pay was, employer offered him €80 more per week. Employer would cover all tax etc. Gross pay was never discussed but has always been used as a barrier to pay rise discussions.
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