Taxing pensioners

Sir, – So the computer in the Revenue does not talk to the computer in Department of Social Protection when it comes to taxing…

Sir, – So the computer in the Revenue does not talk to the computer in Department of Social Protection when it comes to taxing high-income recipients of child allowance, but it does when Revenue wants to target pensioners. Do they think we are all fools? – Yours, etc,

MICHAEL JOY,

Ard Na Groi,

Tramore, Co Waterford.

Sir, – Yesterday (January 6th) was the Epiphany, the day the wise men came bearing gifts. The gift I received was a letter from the District Manager, Louth Revenue District, Government offices, Dundalk, telling me that from now on I will be paying income tax/universal social charge on my non-contributory old age pension of €239 per week, (a yearly income of €12,428). I will be paying 2 per cent on €10,036 and 4 per cent on the rest.

I phoned the number provided, and got a machine. At the end of a long list of their services, one is informed that due to technical problems queries on these letters cannot be dealt with and if one has a query, it will take seven weeks to receive a reply.

I then tried to phone Joan Burton, Minister for Social Protection, from whom I get my non-contributory old age pension to ask if the non-contributory old age pension was being taxed. The only office I could get through to was the press office. The very pleasant woman who answered the phone advised me to check with the Department of Finance. I could not get through to it.

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I then phoned my old friends, the lovely people in the old age pension office in Sligo. The nice man there told me that he was unaware of any decision to tax the non-contributory old age pension but again advised me that I should phone the Revenue office. (In the course of our conversation he asked me if I had another pension and I said I had not). Last night on the RTÉ News, it was reported that letters went out to people with two pensions.

The reason I am so fond of the Department of Social Protection OAP office in Sligo is that when I qualified for the OAP in 2010, as having been a self-employed artist I had to go through a quite rigorous process before I was awarded the pension. The staff were extremely helpful and I was just short a few points to qualify for the contributory OAP, even though I had paid a self-employed stamp for years and years and paid tax on my income. I had been in receipt of the artists’ tax exemption, but earned little from this as my artwork is not very saleable and I had to go out and do other work (to support myself and my children), for which I was taxed. I paid the tax willingly.

I fear I cannot afford to pay tax now. I manage my money well and I have not complained about my lot up to now, but it is necessary to count every penny to avoid debt. Out of my income of €239, €50 a week goes to the credit union (to insulate my house and to replace rotting windows) and €20 to the ESB.

The letter from the Revenue arrived just when I was wondering how I would manage to afford the €100 for the household charge, as the rest of my money goes on food and heating at this time of year. I wish I could get through to the district manager or someone in his office, as I am hoping his letter was mistakenly sent to me, (as I do not have two pensions), but as I cannot, will someone please let me know if the Government has really decided to tax the non-contributory OAP? – Yours, etc,

CONSTANCE SHORT,

The Crescent,

Blackrock,

Dundalk,

Co Louth.