Approximately 30 per cent of PAYE taxpayers paid too much tax and/or Universal Social Charge (USC) in 2020 according to provisional statistics from Revenue.
The overpayment amounts to €436 million, with preliminary end of year tax statements available to PAYE taxpayers from tomorrow, January 15th.
Revenue also noted 27 per cent of workers paid less tax and/or USC than what was owed, totalling €458 million, while 43 per cent had a balanced position, paying the correct amount.
From tomorrow, PAYE workers will be able to view their preliminary statements on the My Account section of Revenue’s website, where they will be able to see if they owe or are owed money.
Head of Revenue’s personal division Declan Rigney said the preliminary statement will give people clarity.
“This will bring a level of visibility, assurance and certainty to those who were concerned about their end of year position, particularly in the light of some of the recent media and public commentary that suggested large amounts of tax could be owed.
“At the outset, it is very important to note that the PAYE end of year process relates to all PAYE taxpayers rather than any particular subset.
“Today’s statistics clearly show that across the entire PAYE case base, including those in receipt of TWSS and/or PUP subsidy payments, over 80 per cent have a preliminary end of year tax position that is either balanced, overpaid or underpaid by less than €200.”
Mr Rigney added that about 47 per cent of workers who qualified for one or more wage supports during 2020 are due a tax refund or have no additional liability, while 23 per cent have a liability under €500 and 15 per cent owe between €500 and €1,000.
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“Revenue is very aware that underpayments could cause financial difficulties for some people and wish to reassure these taxpayers that collection will not start until January 2022, one year from now.
“Also, given the collection of the amount owed will be spread over four years, an underpayment, for example, of €1,000 will be collected in amounts of just under €5 per week,” Mr Rigney said.
To finalise your tax return, workers must complete the income tax return on the Revenue website, which is pre-populated with the necessary information. They can add any relevant tax credits they qualify for and declare any additional incomes before submitting, and will then be sent a statement of liability showing their final tax and USC amount for the year.
For those who owe money, Mr Rigney said there is no immediate requirement to pay the amount specified in their preliminary end of year statement.
Source: Business News