Nash calls on PAYE workers to make a tax return as figures reveal many are overpaying

30 October 2024
  • Quarter of all PAYE taxpayers may be owed an average of over €700 for 2022 alone 

Labour’s finance spokesperson, Ged Nash TD is making an appeal to PAYE workers to make a tax return online and claim the tax reliefs they are entitled to, after he uncovered figures that show about a quarter of workers are overpaying their income tax.

Deputy Nash uncovered the figures in a parliamentary question to Minister for Finance, Jack Chambers TD.

He explained: “I secure this data every year so I can make a simple appeal to PAYE workers – do a tax return online and claim all of the tax reliefs and credits the law entitles you to claim, from tax relief on medical bills to the renters’ tax credit.

“Every extra cent makes a difference to working families in the highest cost economy in the EU.”

Deputy Nash said: “It is now clear from the figures issued to me from the Revenue Commissioners that around a quarter of all PAYE taxpayers in 2022 and 2023 may have overpaid tax.

“That’s a total of 245,000 in 2022 and 330,00 in 2023. The figures are remarkably similar from the corresponding data I received on the same date last 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 are owed.”

The Louth Labour TD added: “It is worth reminding PAYE taxpayers that the file and return deadline for the 2023 tax year is Thursday, November 14 and that you can make a claim for as far back as 2020.

“Indications are that average funds of around €735 could be due to PAYE workers who overpaid their taxes in 2022 alone.

“Based on figures issued on Budget Day in October 2023, the then Finance Minister said around €180 million could be due in refunds for the 2022 tax year, in total.

“I have no doubt the pot of unclaimed money is similar for 2023.”

The Labour spokesperson on finance concluded: “It is high time Minister Chambers and the Revenue Commissioners ran a high-profile annual promotional campaign to encourage PAYE taxpayers to file tax returns and claim all the reliefs and credits workers are entitled to.”

 

 

For Written Answer on : 24/10/2024
Question Number(s)114 Question Reference(s): 43696/24
Department: Finance
Asked by: Ged Nash T.D.
______________________________________________

QUESTION


To ask the Minister for Finance the number of taxpayer units who may have either underpayments or overpayments for the 2022 and 2023 tax years respectively; the number who have not yet submitted a tax return; and if he will make a statement on the matter.

REPLY


At the end of every year, Revenue makes a Preliminary End of Year Statement available to employees. The Preliminary End of Year Statement 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.

To assist taxpayers balance their tax, Revenue regularly issues letters to taxpayers who according to their Preliminary End of Year Statement, may have either overpaid or underpaid tax in a particular tax year. These letters advise the recipients to submit an Income Tax return to claim any additional tax credits or reliefs that they may be due and/or to declare any additional income they may have received. These letters also remind taxpayers of a four-year time limit in respect of submitting such claims.

Revenue advises 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. I am further advised by Revenue that over 1 million PAYE taxpayer units have yet to file an Income Tax return for 2022 with approximately 1.2 million yet to file for 2023. The analysis of those PAYE taxpayers indicates that 600,000 (60%) and 700,000 (58%) taxpayer units in 2022 and 2023 respectively have a balanced tax position. Of the remainder, 155,000 (15%) taxpayer units in 2022 and 167,000 (14%) in 2023 potentially underpaid tax with 245,000 (24%) taxpayer units in 2022 and 330,000 (27%) in 2023 potentially overpaid tax.

Finally, Revenue advises that these figures relate to PAYE taxpayers only, data is not available in respect of potential overpayments or underpayments for self-assessed taxpayers.

 

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