Dáil Éireann Debate, Wednesday - 25 January 2023
79. Deputy Ged Nash asked the Minister for Finance if he will provide an estimate of the expected overpayment of income tax by PAYE workers in each of the years 2019 to 2022; the steps that the Revenue Commissioners takes to ensure that people understand that they may be due a refund; and if he will make a statement on the matter. [3396/23]
Amharc ar fhreagraI am advised by Revenue that, to date, it has refunded €530 million to PAYE taxpayers in respect of 2019; €474 million in 2020; €554 million in respect of 2021 and €193 million in respect of 2022.
Each year Revenue issues reminder letters to taxpayers who did not claim any additional credits in the previous four years, advising them that they may be entitled to further tax relief depending on their individual circumstances. These letters also remind taxpayers of a four-year time limit in respect of submitting such claims.
In 2022, Revenue wrote to over 400,000 individuals who, based on the information available to Revenue, may have overpaid or underpaid tax in some or all of the years 2019 to 2021 inclusive. These letters provide a preliminary tax position, advising the recipients to submit a 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.
As of 23 January 2023, over 1 million PAYE employees have submitted tax returns in respect of 2019 and 2020; while over 1.1 million submitted returns for 2021 and over 370,000 PAYE employees have submitted their returns in respect of 2022.
Any overpayments due to PAYE taxpayers can only be quantified when they submit their tax returns at the end of the year and claim any additional credits or reliefs that may be due. Revenue will generate a Statement of Liability, confirming their final tax position for 2022.
Revenue encourages taxpayers to submit their returns to ensure that they are paying the correct tax and to receive any refunds that they may be due.
At the end of every year, Revenue makes a Preliminary End of Year Statement (PEOYS) available to all employees. The PEOYS 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.
The table below provides details for PAYE taxpayer units (where jointly assessed spouses or civil partners are counted as one unit) with a PEOYS for the years 2019 to 2022 and who are yet to file an income tax return:
|
Year |
Preliminary Result |
Taxpayer Units |
% of PAYE Taxpayer Units yet to file return |
Total Over/Under Paid |
|
2019 |
Balanced |
1,330,400 |
77% |
|
|
Overpaid |
249,700 |
15% |
€125m |
|
|
Underpaid |
145,000 |
8% |
€68m |
|
|
2020 |
Balanced |
1,080,600 |
65% |
|
|
Overpaid |
216,300 |
13% |
€109m |
|
|
Underpaid |
368,600 |
22% |
€263m |
|
|
2021 |
Balanced |
1,066,300 |
66% |
|
|
Overpaid |
325,100 |
20% |
€182m |
|
|
Underpaid |
221,000 |
14% |
€114m |
|
|
2022 |
Balanced |
1,400,700 |
62% |
|
|
Overpaid |
563,300 |
25% |
€400m |
|
|
Underpaid |
287,200 |
13% |
€118m |
I am advised by Revenue that it issued a statement on Monday 23 January highlighting the end of year process and published a statistical report on 2022 PAYE Preliminary End of Year Statements which is available here on the Revenue website:
www.revenue.ie/en/corporate/documents/statistics/registrations/paye-preliminary-eoy-statements-2022.pdf
The statement highlights the changes introduced in the Budget particularly in relation to the new renters’ credit.
