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Case Study: Where Revenue can get it wrong with Social Welfare

Written by Administrator on February 24, 2015

Case Study Social Welfare & Income Tax

Last week, Sarah took a look at the ways Social Welfare can affect your tax bill – which in many cases could mean you owe Revenue additional taxes. However, I recently had a client where quite the opposite happened and resulted in a refund of over €7,000! So, I thought it was worth sharing.

The client had been receiving the One Parent Family Payment until 2009 when her daughter turned 18 years old. Given this is a taxable source of social welfare, Revenue had been notified of these payments and her tax credits were adjusted to account for the additional income – approximately €12,000 per year.

However, once the client stopped receiving these welfare payments, her tax credits were not adjusted back, therefore resulting in a significant overpayment in tax each year from 2009.

To address this issue, I asked to client to obtain a statement of all her social welfare income since 2010 and then contacted Revenue to remove the One Parent Family Payment income from her records after 2009. This resulted in a tax refund of over €7,000 and one very happy client!

This is just one example of how your tax records can have errors on them – particularly when social welfare income is involved.

If you’re social welfare income has changed or ceased within the last 4-5 years, apply now for a review of your taxes.

Breda LysterWritten by Breda Lyster

Having worked at Red Oak for 5 years, I’m a bit of an all-rounder. I have pretty much seen it all by now. I generally work with clients with more complicated taxes, but always strive to get their taxes sorted with the minimal amount of hassle for the client.

Posted Under: Income Tax, Social Welfare

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