IB writes from Howth: I was self-employed as a sole trader from 1990 to 2003 and made joint tax returns with my husband under his PPS/RSI number. In 1999, I got a letter from the Department of Social and Family Affairs suggesting I get my own PPS/RSI number, but our accountant said it would make no difference so I continued paying tax under my husband’s number.
In 2003 I transferred the sole trader business to a limited company, became an employee and got my own PPS number and registered for tax in the S category. I recently sought optical benefits and discovered that I only had benefit in my own name since 2003 and therefore did not qualify for optical benefits, nor, I subsequently learnt, for a contributory pension in my own right.
Is it possible to get my earlier tax payments from 1990 to 2002 transferred/credited to my own PPS number? I have copies of all tax returns clearly listing my income separate from my husband’s income.
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There has been a breakdown in communications, but you need not worry. It was not uncommon for a husband and wife to share one PPS number, but the tax and PRSI you paid would have been recorded separately and you are entitled to the appropriate benefits. These should include a contributory pension at retirement, assuming that the correct number of contributions have been made.
As a Class S category taxpayer, however, you are not entitled to optical or dental benefit. You should set up a meeting with your accountant or a different tax adviser to discuss your entitlements.
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Holiday firm has to play by rules
HD writes from Cork: Last new year, my family and I had an enjoyable, child-friendly holiday in the Canaries. We decided to go back this year, with a new baby in addition to the other children and with another family (who booked directly with the hotel). We booked with the same charter holiday company in mid-June and received a confirmation invoice (with a repeat discount) for the family suite we booked. Final payment was due early this month. At the end of October I got a call to say that the hotel had overbooked, but the company offered us another five-star hotel in the resort, but not with the same facilities. They said they would try and get us a cancellation at the original hotel, but I am still waiting. Is there anything that can be done?
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Under the terms of the Package Holidays and Travel Trade Act, 1995, in these circumstances the charter holiday company must offer you a replacement holiday of equivalent or superior quality; a lower grade holiday, with a refund of the difference in price; or a full refund. If you do accept the substitute accommodation, but are still not satisfied, you should complain to the travel rep. If your complaints are not addressed, lodge a complaint with the company within 28 days of returning home. If you still are not happy, you can take the company to the small claims court if the loss is €2,000 or less, or you can complain to the director of consumer affairs. Back up the complaint with as much evidence as possible — photographs, video footage and so on.
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Find right home for your pension
JG writes from Dublin: I am a retired consultant psychiatrist and worked in the British NHS for 40 years. I get a British occupational pension plus an old age pension. Would it benefit me to put money into the pension incentive scheme or am I precluded from doing this because I get two British pensions? If I can’t, I was thinking of putting money into Northern Rock, but I wonder if this is an online-only account?
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I presume you are referring to the special savings incentive account (SSIA) pension scheme that allows you to shift up to €7,500 of your matured fund into a personal pension, which the government will then top up with up to another €2,500. So long as you did not earn more than €50,000 in the previous tax year, you are eligible to take up this offer, but you must hold onto the new pension fund for one year before converting it into income (only 25% of which is tax-free.)
To maximise any gain from this pension, and minimise the risks, you need to be careful about any associated costs, charges and asset allocation.
Meanwhile, there are various attractive short-term, fixed-rate deposit accounts vying for your matured SSIA fund; some are offering up to 6% per annum for regular monthly savings, but they all come with terms and conditions. Northern Rock offers the highest interest rates for its online accounts, but there are others from which to choose. Check out www.northernrock-ireland.ie or call 1850 315 115.