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Claiming tax back is a common process for many individuals in Ireland. It can help to reduce financial burden and increase disposable income. However, knowing when to claim tax back in Ireland can be confusing for many people. In this blog, we will explore the various scenarios when you can claim tax back in Ireland and when tax returns are due in Ireland.
Tax Credits and Reliefs
You can claim tax back in Ireland when you are entitled to tax credits or tax reliefs, for example, if you have made an overpayment of PAYE (Pay as you earn). However, you must claim a tax refund within the 4 years after the year in which you made the overpayment.
Tax credits are amounts that are deducted from your tax liability, while tax reliefs reduce the amount of income that is subject to tax. Some common tax credits and reliefs in Ireland include:
- Personal tax credit
- PAYE tax credit
- Home carer tax credit
- Medical expenses relief
- Rent relief
To claim tax back in this scenario, you need to fill out a form called a P21, also known as a balancing statement. This online form is available from Revenue. You will need to provide information about your income, your tax credits and reliefs, and any tax you have already paid. The Revenue Commissioners will use this information to calculate if you are entitled to a tax refund.
Leaving Ireland
One of the most common scenarios when you can claim tax back in Ireland, is when you are leaving the country permanently or temporarily under ‘split year relief’.
When you are leaving Ireland permanently, you are entitled to claim back any tax you have overpaid during your time in the country. This includes income tax, Universal Social Charge (USC), and Pay-Related Social Insurance (PRSI).
Under ‘split year relief’, you may be eligible for a reduced tax liability for the year of departure or arrival, depending on the specific circumstances.
To claim tax back, you need to fill out a form called a P50. This form is available from the Revenue Commissioners website. You will need to provide information such as your PPS number, your last known address in Ireland, and details of your employment. You will also need to provide evidence of your departure from the country, such as a flight ticket or a letter from your employer.
Changing Jobs
If you change jobs during the tax year, you may be entitled to claim tax back in Ireland. For example, if you overpaid tax in your previous job, you could claim a refund when you start your new job. You will need to provide your new employer with your PPS number and register your new job on your Revenue online account and subsequently, request an up-to-date tax credit certificate. This is issued by Revenue and contains information about your tax credits and any other allowances you are entitled to.
If you become unemployed, you may also be entitled to claim a tax refund. You can apply for a tax refund online using Revenue’s myAccount service. You will need to provide information about your employment and any other sources of income you have. If you are entitled to a refund, Revenue will process your claim and issue a cheque or transfer the money directly into your bank account.
When is Tax Return Due in Ireland?
Apart from claiming tax back, it is also important to know when tax returns are due in Ireland. In general, tax returns in Ireland are due on or before the 31st of October in the year following the tax year. For example, the tax return for the year 2022 should be filed on or before the 31st of October 2023. If you file your tax return and pay any tax due online, the deadline is extended to mid-November.
If you miss the deadline for filing your tax return, you may be subject to penalties and interest charges on the overdue balance. Therefore, it is important to keep track of the deadline and submit your tax return on time.
When Does Revenue Give Tax Back?
If you are entitled to a tax refund in Ireland, Revenue will usually process your claim within five days, unless the return is selected for further checking. However, this can vary depending on the complexity of your case and the volume of claims being processed. If you file your tax return online using Revenue’s myAccount service, you can usually expect to receive your refund more quickly than if you file a paper return. If you have not received your refund within eight weeks, you can contact Revenue to check on the status of your claim.
In conclusion, there are several circumstances when you can claim tax back in Ireland, including leaving the country and changing jobs or circumstances. It is important to file your tax return on time and keep accurate records of your income and expenses to ensure you are paying the correct amount of tax. If you are entitled to a tax refund, Revenue will process your claim as quickly as possible, usually within four to eight weeks.
If you have any questions or concerns about claiming tax back in Ireland, it’s always a good idea to seek the advice of a trusted accountancy firm. Likewise, for businesses in Ireland seeking expert tax advice or taxation services, speak to our team of qualified professionals today.
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