tax office made computer error .must now pay 7.500

S

samsara

Guest
can anybody advise me on this matter ? . i've been sent a tax bill of 7,500 .i am working full time for years now and when i rang to ask why or what happened to make me owe this ammount ,i was told that it was a computer error on their behalf and that i must now forward on a cheque . surely if it was their fault i shouldn't have to pay the full ammount ? i don't know where to turn as i cannot afford this at all
 
Sorry, I thought you might have been based in USA or somewhere outside Ireland; I've never heard of a problem like this with the Revenue, unless they have not allocated the correct tax credits to you over a period of years, resulting in persistent under-deduction of tax. Is this the case?
 
i do think it has something to do with tax credits yes but as i have no clue about taxation i had no idea that this was happening
 
this is an impossible outcome and conflicting statement ''i was told that it was a computer error on their behalf and that i must now forward on a cheque''
 
that is what they told when i rang them . that it was a computer error
 
Love like human error, such as the person who runs your payroll swapping your Tax Credits and Cut Off Point.
 
It is every tax payer's responsibility to check that their tax-credits and end-of-year tax payments are accurate.

Please check the wording on the front of your Tax Credit Certificate and the PAYE for Employees booklet.
 
Unfortunately you will have to pay it back you may be able to come to a payment arrangement with them.fo and see them asap. But previous reply is correct it is the taxpayers business to know what their tax credits are and to notify the revenue if there are any errors
 
Unfortunately, if you really do owe this money, you will have to pay it.
However, they cant demand a cheque for money you dont have, and usually agree to a payment plan over time.

BTW, Are you a PAYE worker, self employed, or do you have other income like a rental property ?

You say you are clueless about tax. You need to find a friend who understands the system and can help you,

You need to get someone to review the tax bill you have been sent, explain it to you, and ensure that it is correct. Then negotiate a payment plan with Revenue.
 
If you can't pay (assuming you DO owe it) they will probably code it into your credits by giving you reduced credits for the next number of years until it is paid. I've seen them come to this arangement before.
 
paulpd said:
If you can't pay (assuming you DO owe it) they will probably code it into your credits by giving you reduced credits for the next number of years until it is paid. I've seen them come to this arangement before.
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I thought this was actually the default arrangement for PAYE people who had underpaid for whatever reason, that they lower your credits for the upcoming (and future?) years.
 
If you underpaid tax it has to be repaid, as stated above it is the taxpayers responsibility to ensure he/she is paying correct tax. Doesnt' matter whose fault it is, revenue's, yours or your payroll dept it has to be repaid. you can ask that you repay it by having your tax credits reduced for next 4 years. You'd be paying an extra €36 tax a week (€7,500/4(yrs) = 1875/52(wks) = €36.)
 
igy said:
I thought this was actually the default arrangement ... that they lower your credits for the upcoming (and future?) years.
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IME for underpayment of a few hundred they are usually willing to adjust the credits / tax basis, for larger amounts dating back a few tax-years they may want a quicker resolution.
 
back claim for the last 4 years,medical bills,bin tax,clothing allowance,rent allowance anything you can think of,they will owe you money,worked for me.
 
An error of this size is worthy of a better response than this. Consider making a formal complaint to Revenue http://www.revenue.ie/en/about/custservice/how-complain-revenue.html and seeing what that brings up.
 
thanks for the advise folks .you've been very helpful
 
samsara said:
thanks for the advise folks .you've been very helpful
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If it was their mistake, try and negotiate an interest free repayment plan...if it was your fault (or your employer's fault) then try and negotiate a standard repayment plan (assuming you don't have the cash lying around).
 
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