Wednesday 16 October 2019

Revenue launch new online system to save employees over-paying tax

Finance Minister Paschal Donohoe. Photo: Brian Lawless/PA Wire
Finance Minister Paschal Donohoe. Photo: Brian Lawless/PA Wire
Charlie Weston

Charlie Weston

A new facility launched by Revenue is expected to ensure fewer people over-pay their income tax.

From this week, taxpayers can see up-to-date information on all the taxes and other charges on their income. This includes employees and people getting an occupational pension.

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Taxpayers are being encouraged to set up an online account with Revenue to see the details.

Since the start of the year, employers have had to submit information on a monthly basis for each employee.

The tax authority has so far received 2.2 million payroll submissions from employers in relation to 2.6 million employees and pension recipients. It covers almost €36bn in payments.

This includes details of pay, income tax, universal social charge (USC), PRSI (pay related social insurance and income tax rate for the staff member. If the local property tax is being paid monthly through salary or a pension, it will also be captured.

Also included in the system are pension contributions paid by employers and any share-based salary.

All this information can be assessed by taxpayers by signing into myAccount on the Revenue's website. The new system will allow taxpayers to double check the accuracy of what is being submitted to Revenue on their behalf and not just what is on their payslip.

The new system has led to the abolition of paper forms such as the P60, P45 and P30.

Revenue said the system, the first major moderation of PAYE since the 1960s, will mean less chance of people paying too much tax.

That can happen because they are on emergency tax or paying the wrong income tax rate, or not claiming a relief such as home carer's credit.

Tax experts said last week that thousands of families are losing out on a valuable tax relief large enough to help pay for a summer holiday.

They estimate up to 60,000 families are missing out on the home carer credit.

It is worth €1,500 this year and can be claimed by a married couple and those in civil partnerships.

Home carer's credit can be claimed using the myAccount system.

Revenue, in a briefing for the Irish Independent, said the new system means taxpayers will no longer have to wait days for amendments to tax credits or for a rate band adjustment.

"Consequently, in overall terms it is expected that the number of employees on emergency tax will be less under the new regime than would have traditionally been the case," a spokesperson said.

To set up a myAccount you will need a Personal Public Service number (PPS), and have to enter your date of birth, a phone number, email address and home address.

The system can accessed on a computer, and on a mobile phone through an app.

Irish Independent

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