[Ireland] Thousands of PAYE workers who overpaid should submit return before deadline

In Ireland, PAYE workers have been urged to hasten checks on whether they are due refunds after it emerged that hundreds of thousands of people have overpaid taxes on their wages in recent years, Irish Independent reports.

New figures revealed that 330,000 PAYE workers overpaid their taxes last year and 245,000 taxpayers were owed refunds from the Revenue Commissioners in 2022.

Therefore around a quarter of all PAYE taxpayers may have overpaid taxes last year and the year before.

Average refunds of around €735 could be due to taxpayers who overpaid their taxes in 2022 alone.

In a Dáil reply to Labour finance spokesman Ged Nash, Finance Minister Jack Chambers reportedly stated that provisional data provided to him by Revenue shows that thousands of workers are overpaying their taxes every year.

Mr Nash urged all PAYE ­workers to submit a tax return to ensure they receive the reliefs and credits they are entitled to.

The deadline for submitting a tax return is November 14.

Mr Chambers told the Labour TD that Revenue makes a Preliminary End of Year Statement available to employees. It sets out a provisional tax position, based on information available on revenue records. It will show whether an employee has paid the correct amount of income tax and Universal Social Charge (USC) for the year.

“I am advised by Revenue that the final position for PAYE taxpayers can only be quantified when taxpayers submit their tax returns at the end of the year and claim any additional credits or reliefs that may be due or declare any additional income they may have,” Mr Chambers said.

Workers can claim tax relief for paying medical expenses, get e-worker relief if they work from home, claim a rental tax credit if they rent, and those on tracker and variable rate mortgages can claim a tax refund, along with a string of other reliefs and credits.

Mr Chambers reportedly said that Revenue regularly issues letters to taxpayers who may have overpaid or underpaid tax.

These letters advise the recipients to submit an income tax return to claim any additional tax credits or reliefs they may be due and to declare any additional income they may have received.

Revenue has said that, to date, 1.2 million PAYE taxpayer units filed an income tax return for 2022, and 1.1 million PAYE taxpayer units have already filed for 2023.

However, another one million PAYE taxpayer units have yet to file an income tax return for 2022, with approximately 1.2 million yet to file for 2023.

According to the Irish Independent, Mr Nash was informed that around six out of 10 PAYE taxpayers had a balanced tax position last year and the year before but 155,000 taxpayer units in 2022 had potentially underpaid their taxes. Last year 167,000 had potentially underpaid tax.

The figures relate to PAYE taxpayers only, data is unavailable for self-assessed taxpayers.

Mr Nash said, “I secure this data every year so I can make a simple appeal to PAYE workers – do a tax return online.”

He added that every extra cent makes a difference to working families in the highest-cost economy in the EU and said that the figures are consistent every year.

“This leads me to believe that it may be some of the same taxpayers who year on year fail to do a return and get the cash back that they’re owed.”

Mr Nash reportedly called on Mr Chambers and the Revenue Commissioners to run a high-profile annual promotional campaign encouraging PAYE taxpayers to file their tax returns and claim all the ­reliefs and credits workers are entitled to.

Source: Irish Independent

(Quotes via original reporting)

In Ireland, PAYE workers have been urged to hasten checks on whether they are due refunds after it emerged that hundreds of thousands of people have overpaid taxes on their wages in recent years, Irish Independent reports.

New figures revealed that 330,000 PAYE workers overpaid their taxes last year and 245,000 taxpayers were owed refunds from the Revenue Commissioners in 2022.

Therefore around a quarter of all PAYE taxpayers may have overpaid taxes last year and the year before.

Average refunds of around €735 could be due to taxpayers who overpaid their taxes in 2022 alone.

In a Dáil reply to Labour finance spokesman Ged Nash, Finance Minister Jack Chambers reportedly stated that provisional data provided to him by Revenue shows that thousands of workers are overpaying their taxes every year.

Mr Nash urged all PAYE ­workers to submit a tax return to ensure they receive the reliefs and credits they are entitled to.

The deadline for submitting a tax return is November 14.

Mr Chambers told the Labour TD that Revenue makes a Preliminary End of Year Statement available to employees. It sets out a provisional tax position, based on information available on revenue records. It will show whether an employee has paid the correct amount of income tax and Universal Social Charge (USC) for the year.

“I am advised by Revenue that the final position for PAYE taxpayers can only be quantified when taxpayers submit their tax returns at the end of the year and claim any additional credits or reliefs that may be due or declare any additional income they may have,” Mr Chambers said.

Workers can claim tax relief for paying medical expenses, get e-worker relief if they work from home, claim a rental tax credit if they rent, and those on tracker and variable rate mortgages can claim a tax refund, along with a string of other reliefs and credits.

Mr Chambers reportedly said that Revenue regularly issues letters to taxpayers who may have overpaid or underpaid tax.

These letters advise the recipients to submit an income tax return to claim any additional tax credits or reliefs they may be due and to declare any additional income they may have received.

Revenue has said that, to date, 1.2 million PAYE taxpayer units filed an income tax return for 2022, and 1.1 million PAYE taxpayer units have already filed for 2023.

However, another one million PAYE taxpayer units have yet to file an income tax return for 2022, with approximately 1.2 million yet to file for 2023.

According to the Irish Independent, Mr Nash was informed that around six out of 10 PAYE taxpayers had a balanced tax position last year and the year before but 155,000 taxpayer units in 2022 had potentially underpaid their taxes. Last year 167,000 had potentially underpaid tax.

The figures relate to PAYE taxpayers only, data is unavailable for self-assessed taxpayers.

Mr Nash said, “I secure this data every year so I can make a simple appeal to PAYE workers – do a tax return online.”

He added that every extra cent makes a difference to working families in the highest-cost economy in the EU and said that the figures are consistent every year.

“This leads me to believe that it may be some of the same taxpayers who year on year fail to do a return and get the cash back that they’re owed.”

Mr Nash reportedly called on Mr Chambers and the Revenue Commissioners to run a high-profile annual promotional campaign encouraging PAYE taxpayers to file their tax returns and claim all the ­reliefs and credits workers are entitled to.

Source: Irish Independent

(Quotes via original reporting)