Week1/Month 1 explanation please

Ballina

Registered User
Messages
15
My wife is a Civil Servant and is due to retire at the end of this year. I am retired over a year and am in receipt of a Superannuation Pension from the HSE and a Social Welfare Invalidity pension. Neither my wife`s nor my income fluctuates. Yet we are on this Week 1/Month 1 assessment and we get amended tax Credit Certs approximately every 2 weeks, where my tax is different. I never know what I`m going to get any month as its my Superannuation that`s affected. Can anyone tell me how this can be and why cant they take the same amount every month so I know where I stand ? I have written to them for an explanation but got no reply. I would be most grateful if anyone could explain this to me. Thank you in advance.
 
Last edited:

Leper

Frequent Poster
Messages
1,139
1. If you have been submitting details of yours and your wife's income yearly to Revenue, you're half way there.
2. Assuming you've already done Item 1, just ring Revenue (or better again send an email to them) and supply photocopies of your payslips/Pension.
3. Assuming you do not owe Revenue any arrears, it should all be sorted within 2 months of the reply from Revenue.
 

Ballina

Registered User
Messages
15
Thank you Leper, they have all those details. And I got a refund from them in January because they took too much tax last year. Thats why I cant understand being left on this system. I`ll email them again.
 

Just Retired

Registered User
Messages
5
When I retired My Income was derived from 2 sources, Namely State Pension, and Approved Retirement Fund (ARF). Since Revenue will tax all of this income, there is no deduction of P.A.Y.E. Tax from the State pension at source. In order to collect this tax they adjust your Tax cert. by an amount equating the expected income of the state pension.This in most cases should suffice for correct application of tax deduction. When there is an increase in the said state pension, which may and usually comes into effect approx end of March of the following year,The Dept of social protection informs revenue of this increase,an revenue issues an amended cert.to reflect the increase.
Two things happened in my case, the adjusted cert. was now based on a week1/month1 basis, instead of a cumulative basis usually marked N on tax basis of your payslip, The second item I noticed was that since the increase only applied in March, so only 40 weeks of the increase should have applied, i.e.40 x €5 = €200. In their wisdom Social protection via Revenue applied 52 x €5 =€260 instead, so this was blatantly incorrect.
Seeking a remedy Revenue rectified this matter and the tax deductions reverted to a cumulative basis N. The Dept. of Social protection did not have a clue about what I was trying to inform them of, and it appeared they were not that interested in the glaring mistake they had made. Further correspondence was ignored.
However at the end of the year, the review of DSP income was correct in every way, i.e. 40 x €5 was applied, and along with medical expenses etc. a refund was forthcoming. I suppose one reason would be when a Christmas bonus is paid out, this is taxable as well. There is no time to issue a new cert
to cover this, An underpayment of tax may occur unless medical expenses cover the bonus payment by an increase in the tax credit applicable for these expenses. Perhaps someone out there may know why revenue apply Week 1/ Month 1 Basis of tax deduction?
 
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