Thursday, 13 July 2023
Department of Finance
I am advised by Revenue that while the person concerned is currently in receipt of the appropriate tax credit and rate band allocations, they are not distributed evenly between their PAYE income sources on record.
In addition, the person concerned is in receipt of State Contributory Pension payments from the Department of Social Protection (DSP). Where a person has a PAYE source of income only, their annual tax credits and rate band are reduced to take account of any taxable DSP payments, thereby ensuring the tax due is automatically collected through the payroll system. This means that the tax due on the DSP payment is being collected from the person concerned by reducing their tax credits on their PAYE income.
Revenue will engage directly with the person concerned to finalise the matter and ensure that their tax credit and rate band allocations are distributed evenly between their PAYE income sources going forward.