Underpayment of tax

P

Pete74

Registered User
Messages
6
Hi all,

I recently got a p21 cert for tax year 2017. There was an underpayment for 4300 euro. During this year i was working as a paye worker for a company. I only worked there for a short period of time. I discovered on the cert that during this time there was no tax paid and now revenue are saying that i am responsible for the sum. Surely the payroll department should have some responsibility ? Where do i stand here and what options do i have. Would appreciate any help.

Thanks.
 
I think each individual is responsible for their own tax affairs.
 
Was tax deducted by payroll? Do you have a P45 / P60 from the job showing your tax deducted, and does that agree with P21?
 
Hi
Thanks for the response. There was no tax deducted at all over a 5 month period even tough I provided everything that the payroll needed. I contacted revenue and they don't know either why did didn't deduct it they sent them out the certs needed back in September when I requested them after asking payroll what they needed. This is a large sum of money to expect to have to pay because of their incompetence. Does anyone know what my options are in regards to payment options ? as I can't afford to pay in one lump sum and my tax credits only go up to €3000 so I can't use them either.

Thanks again.
 
It sounds like you lived up to every cent of your gross pay, knowing no tax was deducted and now Revenue want the money they're owed. You need to talk to them as none of us knows your complete circumstances. Sorry but they'll get paid one way or another, with your input or without it.
 
It was around 14k which no tax was paid for and I didn't have any other source of income. I thought the employer would have it in order. I did quiry payroll at the time and they said they needed an a cumulative cert sent in from revenue which I got for them. After that I thought they had sorted it. I only found out 2 days ago when I requested a p21 statement from 2017 that they didn't sort it out and now there is €4387 owed to revenue.

Thanks for you help.
 
Hi
I was talking to revenue and they said they don't understand why they didn't deduct it. They had all the certs they needed to do so. I had no idea what was going on I thought it was all sorted. Why would I let that go on. What are my options regarding paying it ? I can't really afford payment on full.

Thanks
 
Firstly you have to recognise that you will have to pay this. You can reasonably be angry at the payroll dept, but that does not change the fact that you will have to pay this.

You will probably not have to pay in one go. In fact I think you may be able to spread it over a period.

Are you working in 2018, and will you be working in 2019. If so ask revenue to amend your certificate of tax credits to collect the money over the period.

You could actually ask that they spread the repayment over say 5 years, they may agree to 3 years.

Although Revenue are not obliged to offer you time to pay, in practice they are often quite reasonable.
 
Hi
It was at 40% this is not the full year only a few months and the €3300 tax credits have already been deducted from my yearly income.

Thanks
 
Pete74 said:
Hi
It was at 40% this is not the full year only a few months and the €3300 tax credits have already been deducted from my yearly income.
Click to expand...

Pete74 said:
It was around 14k which no tax was paid for and I didn't have any other source of income.
Click to expand...

The P21 would reflect your income for a full year. To be taxed at 40% you must have had income other than the €14,000 you mentioned.
 
Yes this is only for part of the year. I have other income for that year. I have paid tax on all other income for that year. There was no tax deducted for the few months that I was with this company.

Regards
 
So you do have another source of income. Perhaps you should start again!

Start at the beginning of the year. What were your income sources and when. For instance, did you have an income source before the short period of employment?

Are you registered for self-assessment? If so, from what date?
 
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