Hi,
I fill out a FORM 11 as I have had some non-PAYE income. This has dwindled in recent years and I will probably file for cessation of trade for 2012. However I had a small amount for 2011 so I needed to fill it in. For various reasons I was late doing it and only got to it this week. In the back of my mind I assumed this was without consequence as I had paid more than enough preliminary tax the previous year to cover me for the small amount of non-PAYE work I had in 2011.
During 2011 my main source of income were two PAYE employments. When I did the calculation on the FORM 11 I was surprised to find I owed the revenue several hundred euro beyond the prelim tax I had paid. It turned out that PAYE doesn't (or didn't) have the ability to allocate the USC out to different employments, so both were starting me off at the low rate and working up. I think also something similar happened with PRSI, the USC as I calculate it doesn't cover all the difference. Anyways, I was hit with not only the difference but also a nice hefty surcharge for late payment.
Here is my question - in a normal PAYE situation how is the issue of USC underpayment dealt with? Is there any possibility that my employment in 2012 covered the underpayment in some way? How does the Revenue get the money back from non-Form 11 people?
And a final side question - the late payment arose purely because of underpayment of tax deducted at source - without that I would have been due a small refund from my prelim tax. Do I have any case in trying to get the late payment surcharge reduced in that kind of a situation?
Any help would be appreciated.
C
I fill out a FORM 11 as I have had some non-PAYE income. This has dwindled in recent years and I will probably file for cessation of trade for 2012. However I had a small amount for 2011 so I needed to fill it in. For various reasons I was late doing it and only got to it this week. In the back of my mind I assumed this was without consequence as I had paid more than enough preliminary tax the previous year to cover me for the small amount of non-PAYE work I had in 2011.
During 2011 my main source of income were two PAYE employments. When I did the calculation on the FORM 11 I was surprised to find I owed the revenue several hundred euro beyond the prelim tax I had paid. It turned out that PAYE doesn't (or didn't) have the ability to allocate the USC out to different employments, so both were starting me off at the low rate and working up. I think also something similar happened with PRSI, the USC as I calculate it doesn't cover all the difference. Anyways, I was hit with not only the difference but also a nice hefty surcharge for late payment.
Here is my question - in a normal PAYE situation how is the issue of USC underpayment dealt with? Is there any possibility that my employment in 2012 covered the underpayment in some way? How does the Revenue get the money back from non-Form 11 people?
And a final side question - the late payment arose purely because of underpayment of tax deducted at source - without that I would have been due a small refund from my prelim tax. Do I have any case in trying to get the late payment surcharge reduced in that kind of a situation?
Any help would be appreciated.
C