Underpayment of Tax

S

shipship

Registered User
Messages
53
I reviewed my tax from last year. The system assumed I was paying into a PRSAI. I've removed that, and the new calculation is there I've underpayed by 7k.

I'm awaiting further details. But from reading online it seems that anything over 6k requires immediate payment.

My pension was taken at source. Meaning I don't believe I've any current way to reduce my liability but I'm going to investigate further.

If on review it turns out my liability is under 6k, does that mean it'll be taken out over four years instead?
 
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Your post is confusing.

This (I presume that you meant PRSA?):
shipship said:
I reviewed my tax from last year. The system assumed I was paying into a PRSI. I've removed that, and the new calculation is there I've underpayed by 7k.
Click to expand...
and this:
shipship said:
My pension was taken at source. Meaning I don't believe I've any current way to reduce my liability but I'm going to investigate further.
Click to expand...
seem contradictory.
 

What to do if you have underpaid Income Tax or USC

This page outlines what to do if you have underpaid Income Tax or Universal Social Charge
www.revenue.ie
 
ClubMan said:
Your post is confusing.

This (I presume that you meant PRSA?):

and this:

seem contradictory.
Click to expand...
Apologies.

My pension was taken at source. The system assumed I had a PRSA as well, so it underestimated my gross income and tax.
 
What system? Employer payroll or Revenue?
How exactly did it happen?
I thought that if you were making pension contributions from net income then you had to manually claim the tax back?
 
shipship said:
Apologies.

My pension was taken at source. The system assumed I had a PRSA as well, so it underestimated my gross income and tax.
Click to expand...
The only way tax relief for a PRSA is applied by Revenue is if a taxpayer applies for it. It's not something granted automatically.
 
shipship said:
I think it copied over from the previous year.
Click to expand...
I didn't think that that was possible.
But, in any case, your question seems to be specifically about how underpayments of tax are dealt with and the link that I posted addresses this.
 
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