Yesterday (23/01/2023), Revenue published a range of statistics on PAYE for 2022. In addition to publishing information on 2022 Income Tax returns which have already been submitted to Revenue, statistics are also provided in relation to the end of year tax position for PAYE taxpayers who have yet to file a return.
Commenting on income tax returns for 2022 which have already been filed, Ms. Aisling Ní Mhaoileoin, Revenue’s National PAYE Manager, said:
“Over 370,000 tax returns have been processed in respect of PAYE taxpayers who have already filed their return for 2022, this is up over 30% on the same period last year. Approximately 275,000 of these returns resulted in an overpayment of tax and €193m has already been refunded to individuals’ bank accounts as a result.
The major difference for 2022 is the introduction of the Rent Tax Credit in the Budget. Unlike usual Budget tax credit changes which apply for the following year, this credit applies retrospectively for 2022 and can be claimed on an Income Tax return for the tax year 2022. The value of the credit is up to €500 per year for individual taxpayers and up to €1,000 per year for jointly assessed married persons or civil partners. Of the 2022 tax returns received to date, approximately 78,400 claims have been made in respect of rent tax credit. In addition, we expect that from mid-February, customers will be able to claim Rent Tax Credit for 2023 in real-time through the ‘Manage Your Tax’ option in myAccount.”
Based on information available to Revenue, including information received from the Department of Social Protection, a Preliminary End of Year Statement for 2022 is now available to all PAYE taxpayers. The Statement provides a provisional tax position in respect of Income Tax and Universal Social Charge (USC).
Commenting on the Preliminary End of Year Statements, Ms. Ní Mhaoileoin said:
“All PAYE taxpayers now have access to their Preliminary End of Year Statement for 2022 in myAccount. The Statement will give them certainty about their pay, tax credits and overall tax position for the year, allowing them to correct or add to information in their record for the year with Revenue. The Statement is easy to access and readily understandable, and employees are encouraged to review the information contained therein for completeness and accuracy at the earliest opportunity.
Today’s report shows that 62% of employees appear to have paid the correct amount of Income Tax and USC for 2022 and approximately 82% have a preliminary end of year position that is either balanced, underpaid or overpaid by less than €200 before they submit their return.”
Ms. Ní Mhaoileoin went on to set out the next steps for PAYE taxpayers:
“The Preliminary End of Year Statement is only a preliminary summary of the tax position. To finalise their tax position for 2022, a person needs to complete an Income Tax return. The quickest and easiest way to submit the return is online – to assist, Revenue pre-populates the online return reflecting the information in the Preliminary End of Year Statement; this minimises the opportunity for omissions and errors and makes the return relatively straightforward to complete.
In addition to reviewing the pre-populated information, completing a tax return also allows an employee to claim additional tax credits such as health expenses or rent tax credit or to declare additional income, as appropriate. Once a tax return has been submitted, a Statement of Liability will issue shortly thereafter, setting out the employee’s final tax and USC position for the year.
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. Detailed guidance is published on the Revenue website with regard to eligibility for tax credits and procedures for claiming. Where a taxpayer has already received a letter from Revenue requesting them to file a return for the years 2019 to 2021 and have yet to take action, they should do so now. “
Re-iterating some key advice for PAYE taxpayers, Ms. Ní Mhaoileoin concluded:
“There are some important things for PAYE taxpayers to keep in mind in relation to the Preliminary End of Year Statement:
- The Preliminary End of Year Statement for 2022 is available now in myAccount.
- Access the statement and check the accuracy and completeness of the personal information and figures provided.
- You can finalise your 2022 tax position by completing an income tax return online.
- If you have additional tax credits to claim or additional income to declare, you can do so when completing your tax return.
- Once you have submitted your tax return, a Statement of Liability will issue shortly afterwards, setting out your final tax and USC position for 2022.”
Provisional statistics in relation to PAYE Preliminary End of Year Statements and Income Tax returns can be found at PAYE Preliminary End of Year Statements.