PAYE tax credit for half year

ronanf

Hi,

I was self employed (IT contractor) until middle of 2006 when I became a PAYE employee.

Previously, as director of a limited company I was not due the PAYE tax credit.

In my tax assessment for 2006, should I be due the PAYE tax credit for the period in which I was a PAYE employee i.e. 6 months from July 'til December? It is not included in my assessment.

Has anyone had dealings with revenue on similar query? Any info appreciated.

cheers,
Ronan.

RoryW

self employed or paye employee director of own company - not entitled
paye employee (regular employee) - entitled

So as you had paye income as a regular employee you are entitled to the employee paye credit

JoeTurner

You should get a full PAYE tax credit even though you were only a PAYE employee for part of the year. I've had a few clients in similar positions

Joe

ronanf

Thanks for the info. I will resubmit my Form 11. cheers, Ronan.

mik_da_man

I went the opposite way and have full PAYE credit for 07.
However when I check ROS I also have full PAYE for 08???...

Mr. Incognito

I went the opposite way and have full PAYE credit for 07.
However when I check ROS I also have full PAYE for 08???...

You'll have to qualify that?

PAYE Credit is an annual credit. Why wouldn't you have it for both years as long as you have PAYE income.

mik_da_man

RoryW wrote: »

self employed or paye employee director of own company - not entitled
paye employee (regular employee) - entitled

So as you had paye income as a regular employee you are entitled to the employee paye credit

so i was a regular employee until june last yr then i set up my own it company and i'm a director. I got the paye credit for 07 and 08 according to ros. According to the above that does not seen correct

Mr. Incognito

okay- well the Revenue system isn't integrated with the CRO- or even with it's constituent Revenue districts parts half the time

It'll atomatically roll forward your credits. Revenue doesn't know your personal circumstances until you infrom them of such. When you file your Income tax return for 2008- as you are now self employed you are required to do this- you will be taken out of the PAYE bracket and the credit will be recinded.

Everyone seems to think Revenue has psychic abilities these days. They don't.

mik_da_man

SetantaL wrote: »

okay- well the Revenue system isn't integrated with the CRO- or even with it's constituent Revenue districts parts half the time

It'll atomatically roll forward your credits. Revenue doesn't know your personal circumstances until you infrom them of such. When you file your Income tax return for 2008- as you are now self employed you are required to do this- you will be taken out of the PAYE bracket and the credit will be recinded.

Everyone seems to think Revenue has psychic abilities these days. They don't.

what? I don't think they have magic powers by any means! And i'm not thick either. I have already submitted my p35 they just must take their time to update the systems.

Mr. Incognito

sorry if I appeared condecending that wasn't aimed at you in particular. It is possible to be an empoyer AND and employee. As an ex PAYE employee Revenue will not take you out of that bracket until you ring them and tell them to, P35 or not. Ring your local district and ask to be registered for Income tax from the end of 07.

mik_da_man

No Harm done - cheers for the advice

Could I get in any trouble if I don't tell them??...

Mr. Incognito

Do you really think any professional's here are going to advocate false disclosures........

In reality as a self employed person you are going to have to file a Form 11 for 2008. This should list all income. A Notice of assessment will issue on foot of this and if you have no PAYE income you will have no PAYE credit nor entitlement to such. As regards penalties it's a 5% surcharge on the unpaid balance within three months ( Dec 2009) or 10% thereafter PLUS daily Interest which is open to assessment for up to 4 years. Is that worth a credit of a paltry 1830 or 152 yo yo's a month?

mik_da_man

I am not looking to de-fraud the revenue here. Just wondering what could happen. I was not aware of the form 11 and heard nothing from the revenue about it.

Mr. Incognito

Mik- Ireland is a self assessment system. The obligation is on you to keep yourself updated and educated on your tax affairs. If you do not there is no mitigation of penalties. You will hear nothing from the Revenue until they start issuing demands for late payments.