I am advised by Revenue that it has reviewed the person’s tax situation and is satisfied that the position as at January 2019 is correct.
The tax credits applied to the person’s private pension were correctly reduced to take account of the increase they received to their Survivor’s Pension from the Department of Employment Affairs and Social Protection (DEASP) in 2018.
In situations where a person has both a private pension and a Survivors Pension from DEASP, the tax due on the latter (DEASP payment) is achieved by reducing the annual tax credits on the former (private pension) by the value of the DEASP payment.
For example, an increase of €5 per week in a DEASP payment means that tax on an additional €260 is to be collected over the course of the year by reducing a person’s tax credits. €260 extra income at the standard rate of tax of 20% gives rise to a reduction in tax credits of €52 for the year or €4.34 per month.