PAYE

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Flat Rate Expenses to be abolished from 2020

Do you qualify for Flat Rate Expenses in relation to your profession?

Flat Rate Expenses are employment expenses claimable depending on the profession you are in.

Revenue have undertaken a review of these and despite opposition from many trade unions they will be withdrawn from 1st January 2020. If you qualify for flat rate expenses, you can still claim these for the tax years 2015 – 2019.

Please note the 2015 tax year must be claimed by the 31st December 2019. Ensure you claim this entitlement while it is still available to you.

A list of qualifying professions are available here; https://www.revenue.ie/en/employing-people/employee-expenses/flat-rate-expense-allowances/index.aspx


Why not avail of our ClaimMyTaxBack.ie service for PAYE only?

We can review the last four years for you and calculate if you are entitled to a refund for any of those years.

This review is undertaken on a No Refund/No Fee basis. Therefore, if you are not due a refund, no fee applies.

If a refund is due, our fee is 10% of your refund (minimum of €35) per year.

Should you wish to avail of this service, please request an application form at taxback@claimmytaxback.ie or visit our website www.claimmytaxback.ie


While you’re here…why not read our recent blog, on claiming your tax back for the year 2015 by 31st December 2019 deadline

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Revenue advising taxpayers to claim their entitlements before 31 December Deadline

As reported through rte.ie, Revenue are currently writing to over 130,000 PAYE taxpayers that have not claimed any additional tax credits/reliefs in the previous four years, reminding them to claim their entitlements for the year 2015 before 31st December 2018.

As you may be aware, there is a four-year time limit on claiming tax back on for example; medical expenses, tuition fees and for claiming tax credits/reliefs on for example, home carer’s credit.

Pat Murphy, National PAYE Manager in Revenue’s Personal Division explains;

“You can claim a refund of tax paid if there are entitlements you are due but have yet to claim,” he said.

“However, there is a four-year time limit for claiming tax refunds and the deadline for 2015 claims is December 31, 2019, so now is a good time to check that you have claimed all of your entitlements.”

If you have a claim for 2015, you need to submit this by 31st December. Generally, Revenue are issuing refunds within 5 days so there is still time to claim yours before Christmas!

Why not avail of our ClaimMyTaxBack.ie service for PAYE only?

We can review the last four years for you and calculate if you are entitled to a refund for any of those years.

This review is undertaken on a No Refund/No Fee basis. Therefore, if you are not due a refund, no fee applies

If a refund is due, our fee is 10% of your refund (minimum of €35) per year.

Should you wish to avail of this service, please request an application form at taxback@claimmytaxback.ie or visit our website www.claimmytaxback.ie

Should you have any queries on this issue, please contact us on 01 5397999

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Are you claiming the correct tax credits?

As reported in the Independent and various media outlets, over €4bn has been refunded by Revenue to taxpayers since 2010.

Tax Relief due on medical expenses, nursing home fees, etc have been claimed but this figure also includes overpayment of Income Tax. In our experience, taxpayers wrongly assume Revenue will inform them if they have overpaid in tax or their credits need to be amended but this is not the case.

Unless you request a P21 balancing statement from Revenue each year and ensure you are claiming the correct credits, you could be overpaying tax every year.

There are numerous tax reliefs available that taxpayers are not aware of and the Revenue have been called on to make people more aware of their entitlements. This is currently done in the UK through TV, Radio and Newspaper campaigns each year.

Only those who submit a claim with Revenue Commissioners will receive their portion of the overpaid taxes sitting on Revenue’s balance sheet. Once 4 years has passed this refund is no longer available. There is still a “fear factor” with Revenue where a lot of individuals are afraid to file a tax return in case they end up with a liability. This is very rarely the case, however if it does happen it is important that such an issue is addressed ASAP, as it could continue to occur going forward. And the aforementioned 4-year time limit, does not apply to Revenue.

“Sure I’m a PAYE worker, my tax is deducted at source”

This is a common response when we advise taxpayers of the importance in filing an annual tax return claim with Revenue. This is true, however over 80% of PAYE taxpayers overpay their taxes by on average €990 every year, and this is only of the people who actually do file returns.

There are usually 3 reasons why individuals overpay their taxes.

  1. Payroll Errors – yes, on the most part your tax is calculated correctly on payroll software. However, that software relies entirely on the information inputted by the payroll officer, who in turn relies on information from you, the Revenue Commissioners and the employer. With that much human input involved, you can see how human error could result in an over (or under) payment of Tax, USC or PRSI . It happens
  2. Incorrect Allocation of Allowances – whether you are a married couple or a single person with more than one source of income, you have certain rate bands and credits available to you with regards to Tax and USC. In order to ensure you do not overpay tax these allowances should be allocated according to the level of income between spouses and/or different sources of income, subject to Revenue limits. Where these allowances have not been reviewed regularly, more often than not they are allocated incorrectly, which is resulting in overpaid taxes.
  3. Claiming your Tax Credits – Revenue put the onus on the individual taxpayer to research, understand and ensure that they are claiming all their entitlements. Below are just some of the reasons why you might be missing out on tax refunds if you are not filing returns, there are many more:
  • Marital Status
  • Medical Expenses
  • Dependent Relatives
  • Tuition Fees
  • DIRT refunds
  • Age Credit
  • Home Renovation Incentive
  • Pension Contributions
  • Income Protection
  • Investment Incentives
  • Medical Insurance (BIK)
  • PRSI refunds once over 66
  • USC refunds for over 70’s

Contact us to request our Tax Return Application Form and we can review your taxes for the last 4 years

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Revenue 2018 Annual Report

Revenue issued their 2018 Annual Report on 09th May confirming Revenue collected net Exchequer receipts of €54.6 billion last year.

Chairman, Niall Cody stated that;

‘when compared to 2017, net Exchequer receipts increased by €4 billion. There were increased receipts for almost all taxes and duties including Income Tax, up 6.6%, VAT up 7% and Corporation Tax up 26.7%.’

Mr Cody acknowledged taxpayers’ engagement, and that of tax practitioners and agents, in achieving the very strong compliance rates seen again for 2018. 9,000 businesses and individuals had phased payment arrangements in place by the end of 2018 covering €93 million in debt. For taxpayers that refuse to pay their tax or liase with Revenue, Niall Cody explained that;

‘we undertake a range of debt collection and enforcement actions to collect tax debt. In 2018, we collected €211.6 million as part of our debt collections and enforcement actions.’

Mr Cody also went on to say;

‘it is very important that we support compliant taxpayers by identifying risks and tackling non-compliance in all its forms. We continue to be alert to, and pro-actively respond to, the risks arising from the changes in economic and business environments both nationally and globally.’

The new arrangements for PAYE reporting with PAYE Modernisation came into force on 01st January 2019. Revenue received 1.4 million payroll submissions as of 31st March 2019 from almost 157,000 employers for more tan 2.6 million employees and pension recipients totalling almost €24 billion.

Mr Cody added;

‘with real-time reporting now in place for employers, we have turned our focus to the benefits of this new system for employees. From 15 May, all employees will be able to view their payroll details, as reported by their employer, through myAccount. Further improved services through myAccount will follow later in the year.’

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