Paid in advance and 30 euro over income levy threshold

axer

Hi all,

I was about 30 euro over the income levy threshold because the company I work for paid early before the new year even though the pay included for Friday 1st Jan 2010.

Is there anyway to exclude income or something like that so that at least 30-40 euro is not counted?

The 30 - 40 euro cost me 300 euro in income levy tax just because I was paid in advance.

Thanks for any help/advice.

Mr. Incognito

Income is taxed in the year to which it relates so they should back out Friday the 1st and that should do it.

That is of course if your payroll is sound. Mostly it's people banging numbers into a programme that don't know how it works in my experience.

Best of luck with it.

axer

Mr. Incognito wrote: »

Income is taxed in the year to which it relates so they should back out Friday the 1st and that should do it.

That is of course if your payroll is sound. Mostly it's people banging numbers into a programme that don't know how it works in my experience.

Best of luck with it.

Does that mean that I would have to get Payroll in the company I work for to change this or should Revenue be able to look at this?

I have a feeling that they don't care about pay period in that payments made in 2009 are taxed in 2009 even if they are for 2010. It has cost me 300 euro in extra tax in my case.

Mr. Incognito

In the footnotes of the TCA 97 Act under Schedule E it states that payments are taxed in the year to which they relate not when they are paid- therefore if you are paid in 2009 and it relates to work done in 2010 it should be taxed in 2010.

I don't have a copy of the legislation at hand as I am out of the office at the moment but I'll give you the correct legislation Section source to quote when I get a chance or someone can pull down the act and let us know.

When you have that source then you have two options, get your payroll to amend your p60 for the correct amount (hard to do me thinks in March of the following year or fill out the Income Levy refund form in the stickies, deduct the amount paid for Jan 1 and include that as your new Gross Income figure for 2009 and submit the claim for a rebate along with an explanation quoting the relevant section reference and asking Revenue to amend your pay and file details for 2009. The inspector in your local district will have to do this.

Unfortunately, you're not going to get this back in a hurry as at the moment Revenue are refusing to process ANY income levy refunds due to industrial action (see stickied thread above)

Really though your payroll should not have screwed this up. It is bad practice to include payments for 2010 in 2009 and tax it in 2009 be it a day a week or a month. Year end means Year END. I don't deal with payroll software so I don't know if they have a built in catch for this but I have experience of going into companies and giving presentations and info sessions to people that do payroll, even in companies that specialise in same and their base qualifications can be diverse and their tax knowledge quite sparse. If they don't care, you should make them aware that this is bad practise and has cost you money. Might save someone else in the future. Hang back till I have a copy of the TCA and can give you the reference to quote them but the way things are in the Revenue, trust me there is no hurry.

axer

Thank you Mr. Incognito. That is very encouraging to hear. I will await the relevant paragraph in the TCA before going further with it.

Our payroll was outsourced to India so that route will more than likely be fruitless.