Received a tax bill from Revenue? Here’s how you can try to offset it!
In the later months of 2022, many Irish taxpayers received letters from Revenue asking them to complete tax returns for the years 2019 to 2021.
That’s because Revenue is owed a significant amount as many workers received pandemic supports and these payments were taxable.
Did you receive one of these letters? You’re not alone! In fact, it is estimated that nearly 300,000 taxpayers received one!
But FEAR NOT! You may be able to offset your tax bill in order to pay less money to the tax man.
In this blog post, we’ll outline why you have been taxed, and how you can reduce your tax bill.
Why have I received a tax bill?
If you received this tax bill, you are not alone.
Thousands of Irish people have received these letters, mainly because Revenue believes they have a tax bill to pay.
You may have a tax liability if you received one of the COVID support payments.
In fact, it is thought that Revenue is seeking hundreds of millions in owed taxes from citizens who received the Pandemic Unemployment Payment (PUP) or the Temporary Wage Subsidy Scheme (TWSS) during Covid-19 lockdowns.
The average Irish tax refund is €1,880
Why do I owe Revenue money?
The reason that you have been requested to file a tax return is that for the pandemic supports that you received, you were not taxed on them.
When you earn income, these taxes are usually automatically deducted from your earnings, so the majority of workers will not owe Revenue anything.
However, because these were not deducted, Revenue has decided that now is the time to claim it back.
How much do I owe Revenue?
Well, that depends entirely on your own personal situation.
Some taxpayers have been hit with bills of nearly €3,000, while some will owe less than that.
Factors that influence how much you owe include how much you received and for how long you received it.
If you do find that you owe Revenue a lot of money, don’t panic, they are not expecting an instant return of this money.
How long do I have to pay the money back?
Revenue fully understands that many taxpayers may find it difficult to repay their tax bill all at once.
That’s why there are a variety of options for you if you find yourself in this situation.
Of course, if you want to get the tax bill off your shoulders, you can pay it instantly!
They will reduce the credits over four years equally for all of the amount you owe.
However, if you are due any refund in future years, before you collect the full liability by reducing the credits, you will offset that refund.
Can I reduce my tax liability?
It is possible to minimise or possibly even eliminate your tax liability.
By using all of the tax reliefs that are applicable to you, you may even be entitled to a tax refund.
Did you know that tax relief is available on many common costs such as medical expenses, tuition fees, flat rate expenses, and work from home expenses?
Check out the top 5 tax reliefs that many Irish taxpayers forget to claim here!
Better yet, you can go back as far as four years to claim these reliefs.
Taxback can help you to claim your maximum Irish tax refund.
When we file your Irish tax return, we’ll apply for the MAXIMUM legal tax refund that is applicable to you!
What will Taxback do for me?
When you use Taxback, you will be 100% tax compliant with Irish Revenue.
That alone takes a major weight off many Irish taxpayers, particularly those who owe money to Revenue.
The best part of our service, however, is that we will ensure you receive your MAXIMUM legal tax refund - our average tax refund for our customers in Ireland is €1,880.
We’ll analyse your personal situation and ensure you are claiming all of the tax reliefs and credits you can.
So, if you owe the taxman money, we will do our very best to offset what you owe.
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