Dáil Éireann Debate, Thursday - 26 May 2016
75. Deputy Fergus O'Dowd asked the Minister for Finance the position for retired PAYE workers who are recipients of a small foreign pension marginally in excess of €3,000 and who would prefer to opt for a PAYE tax assessment but are subject to self-assessment, if he will increase the limit for PAYE assessment for such persons to €4,000; and if he will make a statement on the matter. [12387/16]
View answerI am advised by the Revenue Commissioners that, in general, taxpayers who are "chargeable persons" under the self-assessment system (for example, individuals who carry on a trade, or have non-PAYE income such as investment income or foreign pensions) are required to submit a tax return and self-assessment to Revenue by 31 October of the year following the tax year in question (or by mid-November, if paying and filing through the Revenue On-Line Service).
However, under section 959B of the Taxes Consolidation Act 1997, a taxpayer who has income taxed under the PAYE system (such as a salary or a private pension) and who also has taxable non-PAYE income which does not exceed the income limit provided for in section 959B may request Revenue to reduce their annual PAYE tax credits and rate band entitlements, so that the tax on their non-PAYE income is deducted by their employer or pension provider rather than by way of an annual assessment.
The annual income limit was set at €3,174 for the tax years to 2015 inclusive. However, I increased the limit to €5,000 with effect from the tax year 2016 in Finance Act 2015. The increased limit should reduce the number of taxpayers with low levels of non-PAYE income who are required to submit annual tax returns for 2016 and subsequent years.
