2015 P60 Updated to Prevent incorrect Tax Charge.
When you receive your 2015 P60 this January, a small change has been made to the P60 as a result of action by Red Oak Tax Refunds.
Find out more about this story which we broke last year here on independent.ie
This was to correct an error that existed in previous years P60’s which put the approximate 60.000 plus people in receipt of Illness Benefit at risk of being double taxed.
So what is this Change?
2014 P60 Extract
Per the above P60 extract, You are instructed to include from your P60 the Full amount of your Pay, including Illness Benefit. But Revenue already have your Illness Benefit amount. If you do as they suggest, you will end up double counting income and will be charged too much tax. This would have impacted any Taxpayers with Illness Benefit who updated their own tax details per PAYE Anytime.
If you were a client of Red Oak, you do not need to worry about this error happening to you, as we check for the error and instruct Revenue to correct your details. But PAYE Taxpayers and other Tax Agents were not aware of this error and may have incorrectly calculated your taxes. Only after following up on this with Revenue were we able to get this changed in the Standard P60 template for 2015.
2015 P60 Extract
The change in 2015, is that Revenue are now instructing you to include the Illness Benefit amount (the amount per section 4. is now also updated to PAYE Anytime). This was not done before. This change will prevent double counting of Illness Benefit when you get your Balancing statement.
Coming soon. What to do with your P60!