Updated Tax Credits Problem

Chet T16

Hey, bit of a query on how to handle something here. I look after the payroll where i work and recently i've sent in the form to the revenue to reallocate my tax credits/SR cut off between myself and my wife.

The new details have come back and i see i now have no tax credit at all, my SR cut off is as i requested.

I'm assuming the wife has the total tax credit so whatever tax i pay she won't have to so we'll end up with the same amount of money in the end anyway.

The problem i have now is because my tax credits have been backdated to the beginning of the year the payroll programme is giving me a negative payment amount (Just over 1500) for this week.

How am i to handle this from a payroll point of view?

Is the employee supposed to pay the employer back this money?

I imagine that my wife will get this money in her next pay?

Any calification on this would be much appreciated

Thanks

Mr. Incognito

Are you jointly assessed?

You cannot allovate your srco between you and your wife- if you are seperately assessed your SRCO is 34,000 if jointly and both employed it is 68,000 (assuming your wife has income of at least €25,000.

I'm not really sure what the question is here.

Chet T16

We are jointly assessed, our SRCO has been allocated 26.4k to me and the rest to her as she's on over 40k per year.

The tax credits appear to be gone to her and because they're backdated it seems i need to repay the credits i have been given up to now which is just under 2k. Like i said, the payroll software is showing up a negative payment amount of 1595. My question is am i supposed to pay this back to my employer and if so will she automatically get it in her next pay?

Mr. Incognito

No- just file a Form 12 at the end of the year and it'll all iron out.

Chet T16

I managed to get through to the revenue and they said we should have been put in on a week one basis but she has changed it around now

Thanks