Over 300,000 have yet to claim new tax credit for renters

ONLY a fraction of the number of people who are eligible for the new rent credit have claimed. Just 78,000 renters have so far claimed the credit that was announced in the last Budget.

The Government has estimated that some 400,000 people are eligible to claim it.

It is worth up to €500 per individual renter, or €1,000 a year for a couple.

It has been introduced to help ease the pressure of record highs in the cost of accommodation.

But a survey released by Taxback.com earlier this month revealed widespread lack of awareness among the public around the tax break.

Now Revenue says the big change from last September’s Budget was 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.”

Revenue said 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.”

It added that from the middle of next month it expects that taxpayers will be able to claim the rent tax credit for this year in real-time through the ‘Manage Your Tax’ option in myAccount.

The Taxback.com survey found that almost seven in 10 people are not aware of the rent credit that was introduced late last year to help these tenants, the survey found.

This is despite soaring rents and a chronic shortage of housing financially crippling tenants throughout the country.

Recent Daft.ie data found that rents shot up across the State by 14pc last year, its higher rate of rise since 2006.

Taxback.com consumer tax manager Marian Ryan said Irish taxpayers are historically “below par” when it comes to claiming what’s owed from Revenue.

In an update on tax returns filed by PAYE workers, Revenue said more 370,000 tax returns have been processed in respect of PAYE taxpayers who have already filed their return for 2022.

This is up over 30pc 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 tax authority said.

Revenue’s national PAYE manager Aisling Ní Mhaoileoin said all PAYE taxpayers now have access to their preliminary end of year statement for 2022 in myAccount.

She said the statement will give them certainty about their pay, tax credits and overall tax position for the year.

This allows taxpayers 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.”

She said the Revenue has found that 62pc of employees appear to have paid the correct amount of income tax and USC for 2022.

And she added that around 82pc of workers have a preliminary end of year position that is either balanced, underpaid or overpaid by less than €200 before they submit their return.

Article Source – Over 300,000 have yet to claim new tax credit for renters

independent.ieCharlie Weston

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