Hundreds of thousands missing out on a tax refund

As Benjamin Franklin famously penned: “...in this world nothing can be said to be certain, except death and taxes.”

While the former is a cold hard truth of life, we can try do something about the latter. 

That's because there are lots of tax credits and reliefs available to reduce the amount of tax that workers have to pay. But many go unclaimed. And the latest statistics from Revenue show over 500,000 people are potentially missing out on a tax refund.

So when looking at your energy, insurance or broadband bills to try find ways to save, many of us could also benefit from examining our tax bills too. 

Are you overpaying tax?

According to the latest statistics from Revenue, up until the end of January around 550,000 PAYE taxpayers had filed a tax return for 2024. Up 20% on the year before. And 444,000 of those had found out they'd overpaid tax and qualified for a refund.

But Revenue estimates that this still leaves around 500,000 people who have yet to file a tax return and who are potentially missing out on getting money back from the Government.

The reason is largely due to many people being unaware they're entitled to a refund in the first place, or the assumption that dealing with Revenue will be tedious and not worth the effort. 

However, claiming a tax refund is one of the quickest and easiest ways to put some money back into your pocket.

With the variety of tax credits and reliefs that are available, almost every PAYE worker is eligible for a refund on something. And with the average refund issued being €900, it's money you don't want to leave on the table.

You can ensure you're getting the credits and reliefs you are entitled to by heading to Revenue and logging into the myAccount platform and filing a tax return. 

While filing a return may sound like a longwinded admin task, this shouldn’t necessarily be the case for most people. 

Aisling Ní Mhaoileoin, Revenue’s National PAYE manager, elaborated saying:

“The myAccount service is quick, easy and free to use, and available all year round, 24 hours a day, 7 days a week. Additionally, we use all the information available to us to pre-populate returns. Therefore, for the vast majority of PAYE taxpayers, filing a return is a straightforward process they can complete themselves at a time that suits them.”

What can I claim for?

Here is a brief summary of the available credits and relief. It's worth remembering that you can claim back tax covering a four-year period, so bear this in mind when filing your returns. 

• Medical expense relief

You can claim back up to 20% on most professional medical and health expenses that you’ve incurred over the past year. And if you've paid for someone else's health expenses, you can claim back 20% on these too. 

• Flat-rate expense allowance

Flat-rate expenses are a form of tax allowance for workers in specific industries to help towards the costs of their job, such as uniforms or tools.

• E-worker relief / Working from home relief

This relief is designed to help compensate those that work from home, at least part of the time, and covers certain expenses such as your electricity, heating, and broadband.

• Rent tax credit

This credit is available to tenants or parents paying rent on behalf of a student, and it's worth up to €1,000 a year for a single person and up to €2,000 a year for married couples and civil partners.

• Tuition fees

Tax relief at 20% is available on eligible third-level tuition fees. It's worth noting that this relief is for the person who has paid the fees.

• Home carer tax credit

At €1,950 per year, the Home Carer Tax Credit is available to married couples and civil partners with a stay-at-home carer for a dependant or children.

• Age tax credit

All workers receive a personal tax credit, and those 65 or older, or whose spouse or civil partner is 65 or older, can claim an additional Age Tax Credit. This credit is €245 for single or widowed individuals and €490 for married couples.

• Nursing home relief

Income tax relief is available for nursing home expenses, whether for your own care or someone else's. This relief can be claimed at your highest income tax rate.

• Diet expense relief for coeliacs and diabetics

If you have been diagnosed with coeliac disease or diabetes and your doctor has advised a specialised diet, you can claim 20% tax relief on the cost of compliant food.

If you feel like any of the above could apply to you, check out our detailed guide which includes further details on each relief and credit, and how to claim for each. 

What if I’ve underpaid tax?

While not as common as tax overpayment, last year around 66,000 taxpayers found they'd underpaid tax. However the average owed was only €124.

This is most commonly caused by workers not declaring income they've earned outside of their primary job. 

However, in the majority of cases, this can be fixed by simply declaring the income to Revenue via myAccount, and instead of asking for an upfront repayment, your future tax credits will be reduced over a period of four years. And no interest will be added to your tax bill. 

Review your tax

At the beginning of every year, many of us sit down to assess our household finances to work out areas where we can save.

Along with considering switching your energy supplier or broadband provider, looking at which tax reliefs and exemptions are available to you should be on your household finance priority list.

Submitting a tax return is far simpler than many of us realise, and is one of the easiest ways to get some of your hard earned money back into your pocket.