Government accused of 'incompetence' as just 154k apply for rent tax credit

Labour leader Ivana Bacik said the €500 rent tax credit was too low and 'appears to have been plucked from thin air'. Picture: Gareth Chaney/ Collins 

Just 154,000 renters have availed of the much-heralded rent tax credit announced in last year's budget.

Some 400,000 people are eligible and the low uptake has been blasted as "Government incompetence" by the Labour Party. 

Labour leader Ivana Bacik had asked Finance Minister Michael McGrath for an update on the scheme, which is valued at up to €500 per person, or €1,000 for jointly assessed couples, and is available to tenants who have paid rent in 2022, as well as for 2023, 2024 and 2025.

In his response, Mr McGrath said as of Friday, February 17, 154,273 claims had been made in respect of the 2022 year of assessment.

"These claims were made by PAYE taxpayers by submitting an income tax return for 2022 through Revenue’s online facility, myAccount. 

"I am further advised that the resulting refunds have been issued since January 3. For claims relating to the 2023 year of assessment, those in receipt of income which is subject to tax under the PAYE system will be able to claim the rent tax credit due to them in-year, from mid-February 2023 onwards, or by way of an end of year claim included in his or her income tax return for 2023."

The figures given to Ms Bacik showed 75,446 claims had been made in Dublin and 17,860 in Cork. Figures provided by Revenue show about 75% of those who have claimed earn under €60,000 a year.

Ms Bacik told the Irish Examinerthe uptake was too low, as was the €500 credit.

The low uptake of the renters’ credit just shows how ineffective a measure it is for people who are paying above and beyond the odds just to keep a roof over their head. The €500 sum appears to have been plucked from thin air in the first instance. 

"We know that in Dublin, the average monthly rent is €2,300. This once-off, untargeted measure is barely covering a week’s worth of rent for people. It’s not enough to make any significant difference."

Ms Bacik said the 10% of renters whose tenancies are not registered with the Residential Tenancies Board should be able to avail of the €500 credit.

"It is important that all renters would be able to claim it. Earlier this month, the Labour Party called on Government to introduce a range of targeted, emergency housing measures to give people certainty in the chaotic housing market. 

"Among the proposed measures, we called for all renters to have access to the tax credit, even if their rental property was not registered with the RTB. Why is it vulnerable renters who should have to pay the price for Government incompetence?

"As with all housing measures put forward by this Government, the rent credit is haphazard. Coupled with the Government’s reluctance to extend the eviction ban, renters are really concerned about what’s facing them in terms of supply, security and affordability at the end of March."

PAYE taxpayers can claim the credit by submitting income tax returns through the myAccount portal on Revenue.ie, while self-assessed taxpayers can claim through the Revenue online service.

The filing deadline for the 2022 tax return for self-assessed taxpayers is October 31, 2023.