Seán Conlan (Cavan-Monaghan, Fine Gael)
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Question 125: To ask the Minister for Finance if he will confirm that it is PAYE workers only that can claim six months income tax back. [27487/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that no taxpayer has an automatic entitlement to tax back for any specific period. In the case of PAYE workers, the calculation of any PAYE tax paid that may be due back to a taxpayer is not based on any time period but is based on the amount of taxable income received by a person in the year in question, the amount of tax paid and the amount of tax credits and reliefs due to the person.

In the case of a PAYE worker who becomes unemployed the calculation of any refund that may be due varies depending on the personal circumstances of each taxpayer and is based on the amount of tax paid up to the date of unemployment, the amount of credits and reliefs utilised up to that date and the amount of other income from all sources that the individual may have for the year in question. It should be noted that jobseekers benefit in excess of €13 each week is taxable.

In the case of taxpayers who are self assessed i.e. those who are in receipt of income from sources which are not chargeable to tax under the PAYE system or where some but not all of their tax on these sources of income is paid under PAYE (for example individuals with rental income or other investment or trading income) different rules apply for the payment of tax.

With regard to income tax, self-assessed taxpayers must-

· pay preliminary tax for a tax year on or before the 31st October of that year,

· pay any outstanding tax due for a tax year by 31 October of the following tax year – this is also the date by which their return for the previous tax year is due.

Like PAYE taxpayers, any refund due to self assessed taxpayers for a tax year is calculated based on the amount of taxable income received by a person in the year in question, the amount of tax paid and the amount of tax credits and reliefs due to the person. A period of unemployment of a self-assessed person, while factored into the amount of tax payable by them, does not necessarily give rise to a refund of tax.