Aindrias Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

102. To ask the Minister for Finance the amount yet to be reclaimed in PAYE overpayments collected by the Revenue Commissioners for 2022; the number of individuals yet to make an application under the rent relief scheme through Revenue for 2022; and if he will make a statement on the matter. [21497/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am advised by Revenue that over 810,000 PAYE employees have submitted tax returns in respect of 2022 in the first quarter of this year. Of these, just over 650,000 have received a refund of tax. Revenue has to date refunded €453 million to PAYE taxpayers in respect of 2022, which represents just over 9% of the tax paid by these taxpayers.

Where an income tax return is not completed, Revenue may not be aware of any additional credits or reliefs due to the taxpayer or additional incomes that are not taxed through the PAYE system. Therefore, it is not possible to provide the final details on the amount of overpaid or underpaid tax as individual taxpayer circumstances differ. A Preliminary End of Year Statement is made available to PAYE taxpayers through the myAccount service after the end of each tax year. This statement sets out each taxpayer’s provisional tax position for that tax year, based on the information available on Revenue records.

Revenue also advises that 1,910,100 PAYE taxpayers have yet to file a 2022 Income Tax return. The analysis for those PAYE taxpayers yet to file shows that 1,239,400 (65%) taxpayers had a balanced tax position, 252,300 (13%) taxpayers potentially underpaid tax to an amount of €95m and 418,400 (22%) taxpayers potentially overpaid tax to an amount of €286m.

Regarding the question on the number of individuals yet to make an application under the rent relief scheme through Revenue for 2022, I assume that the Deputy is referring to the Rent Tax Credit provided for in section 473B of the Taxes Consolidation Act 1997.

Claims for the Rent Tax Credit in respect of the 2022 year of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. The statistics currently available on the Rent Tax Credit refer only to claims by PAYE taxpayers for the 2022 tax year and the 2023 tax year to-date. Data on claims by self-assessed taxpayers for 2022 is not yet available as these taxpayers’ returns are generally submitted later in the year due to the statutory filing date for such tax returns is 31 October 2023.

According to Revenue's published statistics, up to and including 20 April 2023, over 226,000 Rent Tax Credit claims had been made by over 209,000 taxpayer units in respect of the tax years 2022 and 2023. Of these, 202,522 taxpayer units made claims in respect of 2022.

Rent Tax Credit claims made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment. Claims for the Rent Tax Credit for 2022 can only be quantified when a taxpayer unit submits their Income Tax return at the end of the year. For this reason, it is not possible to provide the Deputy with an estimate of the number of individuals yet to make a claim for the Rent Tax Credit for the 2022 tax year.

However, during the Budget 2023 process it was estimated that there were 400,000 persons eligible to claim the credit in 2022. The estimate assumed that, for each given year, every person entitled to the credit would apply for it. I would note though that tax refunds can be requested within four years after the end of the tax year to which the claim relates, so it is possible that eligible persons may not claim the Rent Tax Credit in respect of 2022 until 2026, if at all.

Further information and statistics in relation to PAYE Income Tax returns and credits claimed are available on Revenue’s website:www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/peoys.aspx