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Underpayment of tax

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  • 13-05-2010 11:16am
    #1
    maireadmc
    Closed Accounts Posts: 2 ✭


    I am a PAYE employee and filled out my tax return form for 2009 (form 12) a couple of weeks ago and received my balancing statement yesterday in which it states I owe the revenue over €2,000. I was shocked at amount as for the previous few years have always overpaid and received a refund.
    I rang the revenue office this morning to find out why and they told me I had previously been receiving relief for RACs and I didn't claim for this for last year so they were claiming back that relief. I told them that I hadn't claimed for it in my previous tax return form for 2008 so why didn't they pick up on it sooner, unfortunately due to my big mouth I now owe another €2,000 for RAC relief in 2008 that I wasn't due. They said the onus was on me to check my balancing statement was correct so I now owe a whopping €4,000 in taxes.
    I didn't realise until I was off the phone that I finished paying into an RAC at the beginning of 2007 so probably owe them now for 2007 too, am I better off ringing them back and letting them know so I can get an even heftier bill or should I just leave it for the moment - I'm terrified of how much more I will owe them and I just don't have that kind of money lying around!!
    Please help, any advice appreciated?
    Tagged:


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    #2
    DoMyBooks
    Registered Users Posts: 355 ✭✭DoMyBooks


    First of all if your a PAYE employee they wont expect you to pay the €4000 right away. They will generally take it off your tax credits over the next two years for you if you ask.

    Have you claimed for all your valid expenses medical, non routine dental, employment expenses ect.. ?

    If you haven't some of them may help off set the tax bill.

    Hope this helps.


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    #3
    maireadmc
    Closed Accounts Posts: 2 ✭maireadmc


    Thanks for the advice but I have already claimed all my medical. employment expenses etc that I am actually (I hope) entitled to so unfortunately there's nothing there to offset the bill. I'll definitely have to get them to take it off my tax credits as I don't have the money but just wonder how much that will cost me in real terms monthly!


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    #4
    mgadget
    Registered Users Posts: 166 ✭✭mgadget


    Hi maireadmc,

    I got myself into the same situation last year regarding an RAC tax relief. For the years where I was self assessed and was found to owe them, I chose to pay the revenue directly. For the two years where I wasn't self-assessed, they chose to reduce my tax credits for the next two years, basically it comes out my pay packet each month.

    If it is not in a note on the bottom of the balancing statement then ring up and ask how much it will be over the next two years.

    I had an RAC relief of €2000 for each year - and the actual value of the tax relief was €840. So €840 is added to my PAYE taxes this year and next. It works out at €70 a month, even though it feels like I have €100 a month less in my paycheck. I don't have old payslips to compare it with though.


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