Workers decline free money by missing out on tax refunds

A large number of employees are paying more tax than they actually have to

Not everyone will be owed a refund from last year, while others may be allowing the reliefs to build up for the allowable four years before claiming. It is always worth checking.

There are 2.9 million PAYE taxpayers in the country and yet only 790,000 of them filed a tax return for 2020. This means that a large number are paying more tax than they actually have to.

A recent survey confirms that Ireland’s taxpayers are not that proactive when it comes to seeking tax refunds. The Taxback.com Taxpayer Sentiment Survey found that 40% of people cited lack of awareness of the availability of tax reliefs as the biggest reason for unclaimed tax refunds. Some 19% said they were reluctant due to a fear of dealing with the taxman. The same proportion said they believed the process was too complex and/or time-consuming.