Tax refund - with complications - questions.

[itmom]

Hi,
I need some help with calculating a refund. I'll try to make my query clear.

Situation:
Jointly assessed with my husband. Made redundant early last year. No changes made to re-allocate unused tax credits during 2010. Receiving jobseekers benefit. Husband is proprietary director since 2008. Revenue have made several mistakes allocating tax credits over the years. At this stage I am so confused about what tax credits we are entitled to as revenue tell me something different each time I call. I was under the impression that I would be entitled to a refund or top slicing on the tax paid on my redundancy payment.

My questions:
1. Aside from the married tax credit - is a proprietary director entitled to a PAYE tax credit (I get a different answer each time I call revenue)

2. As I did not re-allocate my allowances to my husband last year I believed I could claim the refund of unused credits this year - is that correct or would they have been automatically assigned to my husband - again have got different answer each time I call?

3. Can I request a P21 for myself for last year?
Revenue tell me as we are jointly assessed that he must return Form 11 to have this assessed and cannot request P21 balancing statement for myself . But if the answer to Q1 is No (i.e. he is not entitled to PAYE credit then there will be no benefit/refund due as he would not get the benefit of my unused PAYE credit.

4. I want to request topslicing on my redundancy payment - again if revenue tell me we have to submit Form 11 to have assessment for 2010 - how do I request topslicing assessment?

Apologies for the long post but my head is wrecked with the different stories I get each time I ring.
Thanks in advance

 

[T McGibney]

Hi,
My questions:
1. Aside from the married tax credit - is a proprietary director entitled to a PAYE tax credit (I get a different answer each time I call revenue)

In respect of their salary etc from their proprietary directorship - No
In respect of salary, pension etc from other sources - Yes

Revenue tell me as we are jointly assessed that he must return Form 11 to have this assessed and cannot request P21 balancing statement for myself . But if the answer to Q1 is No (i.e. he is not entitled to PAYE credit then there will be no benefit/refund due as he would not get the benefit of my unused PAYE credit.

Your husband's responsibilities in relation to Form 11 tax returns isn't simply a matter of claiming benefits - he is obliged by law to file an annual Form 11, and unfortunately there are swingeing (and imho utterly disproportionate) penalties for failing to do so.

Revenue won't process a P21 balancing statement for you once his Form 11 is outstanding.

 

[itmom]

Thanks for that TMcGibney.
They have just sent (today) a new tax cert and lo and behold the PAYE credit is still there.....so frustrating. have called them again and they are now issuing a new one without the PAYE credit.

He is up to date with previous Form 11 so we will just submit 2010 Form 11 ealier than the usual October to get an assessment done and hopefully some sort of refund will issue for my unused PAYE credits (less the jobseekers benefit)

 

[DB74]

You cannot transfer the PAYE credit to your spouse. You can only transfer the marriage credit.

The PAYE credit can only be used by the person who is actually earning the income.