Revenue is set to send out 286,000 letters to PAYE taxpayers in the coming days, who may have overpaid or underpaid tax in 2023.
Records indicate that €143 million in taxes may have been overpaid in 2023, and a further €205 million in 2021 and 2022.
Revenue said it has already issued over 400,000 letters to PAYE taxpayers who may have overpaid or underpaid tax in either 2021 or 2022.
“Engagement from those who have already received correspondence from Revenue as part of this year’s campaign has been very positive to date,” said Aisling Ní Mhaoileoin, Revenue’s National PAYE manager.
“Over 180,000 PAYE Income Tax Returns have been filed on foot of the letters we have issued over recent months, and almost 50% of those returns resulted in a refund of overpaid tax,” she added.
The letters issued by Revenue outline that a preliminary end of year statement (PEOYS) is available to all PAYE taxpayers in myAccount.
This document will indicates if the individual’s provisional tax position is balanced, or if there is a potential over or under payment.
In order to finalise their tax position, Revenue said PAYE taxpayers need to review their PEOYS and add any missing details when completing their PAYE Income Tax Return.
If you do owe Revenue money, Ms Ní Mhaoileoin said they will work with you to find a suitable payment option.
“We generally collect any underpayment by reducing the taxpayer’s future tax credits over a period of four years,” she explained.
“This means that an underpayment of €400 will be collected by reducing the individual’s tax credits by approximately €2 a week over the next four years.”
If you’re entitled to claim any additional tax credits or reliefs, this may reduce any underpayment they have.
“It is, therefore, vitally important for PAYE taxpayers to file a PAYE Income Tax Return and finalise their tax position,” she added.
