Young people more likely to seek tax rebates

Younger people are far more likely to submit a tax claim in the hope of reclaiming some cash, because older people fear being stung for more tax or think they are already claiming their entitlements.

The figures from taxback.com show that as people age they are less likely to apply for refunds. The average rebate claimed through the company is €840.

The study found that more men than women claimed tax refunds last year, at 57% and 43% respectively, with more than 25% of all claimants coming from Dublin.

People between 25 and 35 years old accounted for 64% of all claimants, while those over 50 were the worst age group for claiming back tax, accounting for just 4% of claimants.

According to the tax specialists, there are a number of reasons behind the apparent reluctance of older people to submit a return. These include those who have been working for a number of years feeling they are already claiming their full entitlements or may be afraid that they may owe tax. Others may have chosen to incur higher costs to employ an accountant to look after all of their financial dealings.

Darren Byrne of taxback.com said he hoped people would sit up and take notice of the funds they could be entitled to from Revenue.

“Thousands of euro go unclaimed in tax every year. Our average refund is €840 — so thousands of people are effectively throwing this money in the bin by not claiming what they are entitled to.

“Our index is interesting as it identifies those who are best or most proactive with their tax affairs, but it also highlights the age groups and occupations that are slightly more apathetic.”

The index also reveals differences and changes between claimants in 2011 and the preceding year.

“What is always of great interest to people is the most popular tax reliefs and claims that people go for. Surprisingly, we found that these changed between 2010 and 2011 — with the rent tax credit coming in first place in the former and trade union subscriptions coming first in the latter.”

The company said that, of people who query tax entitlements through taxback.com, one third would not be due a refund, one third would choose to go it alone and use the Revenue website to try get their tax back, and the remainder would claim back on average €840.

“The net result of recent budgets coupled with other cuts may leave people short several thousand euro in their annual take-home pay. In light of this, we are urging people to ensure that they are claiming all the tax credits, allowances and reliefs they are entitled to.

“Many of these reliefs can still be claimed up to four years after the tax year in which they were incurred so we are advising that people look back over the last four years and assess and claim any tax rebate which may be due.”