Week 53 & tax return

[DB74]

In 2009 if somebody was paid weekly on a Thursday then they will have had 53 paydays instead of the usual 52 (because there was 53 Thursdays in 2009)

In payroll systems, each employee receives an extra week's tax credit and cut-offs for week 53 in order that they are not out of pocket for that week.

So what happens if that person goes to claim tax relief on, say, medical expenses for 2009 because the Revenue system won't give them an extra week's credit when the return is submitted. So some people could actually end up owing tax to revenue if they send in a tax return for 2009.

Is my thinking here correct or is there somewhere on the Form 11/12 to state that there was 53 paydays in the year?

 

[Towger]

No, but it on the P60 and P35 Return. While they give the extra allowance I have been told that technically they reserve the right to look for the tax.

 

[daxve]

Have a look at following PDF

[broken link removed]

In order to deal with Week 53/54 Revenue will reduce your total gross pay by 1.5% for each week over 52 weeks. You get your normal credits (you don't get an additional weeks credits) and the full tax paid is credited to you.

So for example say your total gross pay is €30,000 after 53 weeks take 1.5% of this - €450 and subtract it from the €30,000. Your total gross pay adjusted to a normal 52 week year is €29,550 you will get your normal credits and credit for the full tax you paid. Your P60 should show that week 53 applied and Revenue will make the adjustment during the review.

 

[Irish Spirit]

dxve is correct. amke sure you spell all this out to the revenue if making any claim