€143 Million Tax Overpayments in 2023 – Investigation Reveals
- The Revenue Commissioners is preparing to mail 286,000 letters to Pay As You earn (PAYE) taxpayers in the coming days, informing them of potential over or underpayments of...
- Records indicate that approximately €143 million in taxes may have been overpaid in 2023, with an additional €205 million potentially overpaid in 2021 and 2022.
- Aisling Ní Mhaoileoin, Revenue's National PAYE manager, reported a "very positive" response to the initial letters sent earlier this year.
Revenue to Send Letters to 286,000 PAYE Taxpayers Regarding Potential Over or Underpayments
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Potential Tax Adjustments for 2023 and Prior Years
The Revenue Commissioners is preparing to mail 286,000 letters to Pay As You earn (PAYE) taxpayers in the coming days, informing them of potential over or underpayments of tax for the 2023 tax year. This follows earlier correspondence regarding 2021 and 2022 tax liabilities.
Records indicate that approximately €143 million in taxes may have been overpaid in 2023, with an additional €205 million potentially overpaid in 2021 and 2022. Revenue had already sent over 400,000 letters to PAYE taxpayers concerning potential adjustments for 2021 and 2022.
Positive Response to Initial Correspondence
Aisling Ní Mhaoileoin, Revenue’s National PAYE manager, reported a “very positive” response to the initial letters sent earlier this year. Over 180,000 PAYE Income Tax Returns have been filed as an inevitable result of this outreach.
Notably,almost 50% of those returns resulted in a refund of overpaid tax to the taxpayer,according to Ní Mhaoileoin.
Accessing Your Preliminary End of Year Statement (PEOYS)
Revenue advises all PAYE taxpayers to review their Preliminary End of Year Statement (PEOYS), which is available through the revenue’s myAccount service. The PEOYS indicates whether your tax position is balanced or if there’s a potential overpayment or underpayment.
To finalize your tax position, taxpayers should review the PEOYS and add any missing information when completing their PAYE Income Tax Return.
Addressing Underpayments and Payment Options
If you owe Revenue money, the agency states it will work with taxpayers to establish a suitable payment plan. Underpayments are typically collected by reducing future tax credits over a four-year period.
For example, an underpayment of €400 will be recovered by reducing tax credits by approximately €2 per week over four years, as explained by Ms. Ní Mhaoileoin.
Taxpayers may be able to reduce any underpayment by claiming additional tax credits or reliefs.
Importance of Filing a Return
“It is indeed, thus, vitally vital for PAYE taxpayers to file a PAYE Income Tax Return and finalise their tax position,” Ní Mhaoileoin emphasized.