Revenue Tax Relief At Source calculated wrongly

veryangryman

Hi all

I am in 3rd year of current tracker Mortgage so according to budget 09, I will be gaining 22.5% of Mortgage Interest back as Tax Relief at Source (up to maximum of 22.5% of €10,000). This should work out as €2250 per annnum or €187.50 per month

Last year, i used to get 20%, which translated to €2000 per annum or €166.66 per month


However, the bank seem to be only giving me €141.83 per month (based on my January statement). If continued, this will result in a total tax reflief of €1701.96

I realise that the ECB rate has dropped significantly in the past year, so perhaps they are calculating my tax based on less than €10,000 interest in total. However, if i work the figures out, they would be assuming that i pay significantly less than 10K interest this year (impossible)

I have contacted Revenue to query this. They point me to the bank, who ask me to contact Revenue. Revenue say they cannot look at my account for privacy reasons and simply pass the rates onto the bank who must apply them. The bank say that they have no access to how the relief is calculated.

Is there anywhere I can go to query the figures?

Sorry for long windiness
:pac:

Brainz

the way to look at this is multiple your amount owed by your current interest rate divide by 12 and this is your interest payment.

you then multiple this by 22.5% as advised and you will get your tax relief -

PM me if you want me to do the figures for you.

dotsman

You should get annual statements of the interest you paid during the year from your bank. This will clear everything up for you. Not sure if it's on the anniversary of your mortgage or the calendar year (my mortgage started in January, so both the anniversary and calender year coincide).

From my statements, I can see I paid less than €10K in interest, so that explains why I was slightly under the €166 per month last year.

veryangryman

From chatting with Revenue, the year starts in January regardless of time Mortgage took out. So me definitely in year 3. If it was year 1-2, Id be on 25% interest relief now (as of Budget 09)

The statements that you mention - sure they will only tell me how much ive paid, not why ive paid it and what rate they are going on?

rameire

whats your rate and rough balance

veryangryman

3.6%

and 213K roughly

rameire

max interest you will pay is 7668 per year based on the rate of 3.6%

so based on this per month you will be due 143.78 euro in tax relief

IsThatSo?

You only get TRS on the interest you pay, up to a max of €10k. So you are not entitled to the full allowance unless you are paying €10k or more in interest.

dotsman

veryangryman wrote: »

The statements that you mention - sure they will only tell me how much ive paid, not why ive paid it and what rate they are going on?

Am with AIB and get both the regular statements (showing my repayments and interest being applied to the account) as well as a separate statement called a "Certificate of Interest" (which I have in front of me right now!)

My balance is 300K and, as said above, I didn't even pay 10K in interest last year.

You can use this site to give you an idea of how much interest you paid over the year. It probably won't be accurate as you're interest rates probably went down during the year, but it will give you a general idea.