Revenue update on 2022 PAYE Tax Returns – over 120,000 claims for Rent Tax Credit

Revenue update on 2022 PAYE Tax Returns – over 120,000 claims for Rent Tax Credit

Today (02/02/2023), Revenue published a range of statistics on Income Tax returns for 2022 submitted in the first month of this year. The preliminary statistics provide a particular focus on Rent Tax Credit.

Commenting generally on 2022 Income Tax Returns filed during January, Ms. Aisling Ní Mhaoileoin, Revenue’s National PAYE Manager, said:

“Over 485,000 tax returns have been processed in respect of PAYE taxpayers who have already filed their return for 2022, this is up 32% on the same period last year and follows a trend that we have seen in recent years whereby more and more PAYE taxpayers are opting to submit their returns early in respect of the previous year. 

Submitting a return allows a taxpayer to claim any tax credits to which they are entitled and receive any refunds they may be due as a result. Revenue encourages taxpayers to review their Preliminary End of Year Statement in myAccount and to submit their returns to ensure that they are paying the correct amount of tax. Of the returns already filed in January, approximately 360,000 resulted in an overpayment of tax and, as a result, €274m has already been refunded to individuals’ bank accounts.” 

In relation to the published statistics on Rent Tax Credit, Ms. Ní Mhaoileoin said:

“We have already seen a good level of engagement on Rent Tax Credit. Over the course of the last month, over 120,000 claims for Rent Tax Credit have been made by PAYE taxpayers on their Income Tax return for 2022. This number is second only to medical expenses in terms of volume of claims. This is particularly significant given that this is a new tax credit announced as part of Budget 2023.

For those who may not be aware, I would like to highlight that, unlike usual tax credits introduced by way of the Budget, the Rent Tax Credit applies retrospectively for 2022. This means that those who met the eligibility criteria for the credit during last year can claim it now on their Income Tax return for 2022 and receive any refund due promptly. The value of the credit is up to €500 per year for individual taxpayers and up to €1,000 per year for jointly assessed married persons or civil partners. For 2023, we expect that from mid-February, customers will be able to claim the credit in real-time through the ‘Manage Your Tax’ option in myAccount.

The preliminary statistics show that the vast majority of claimants to date, some 90%, have indicated that they are in a tenancy that is registered with the Residential Tenancy Board. The remaining 10% report being in a ‘rent a room’ or ‘digs’ situation. 88% of those claiming are doing so in respect of their own private residence as opposed to just 12% who are claiming for tenancies that are required for work reasons or for attending an approved course. Almost all claims to date relate to a PAYE taxpayers own rent payments, as opposed to claims on behalf of dependants.” 

Ms. Ní Mhaoileoin went on to set out the next steps for PAYE taxpayers who have yet to claim tax credits for 2022:

“To finalise their tax position for 2022, a person needs to complete an Income Tax return. The quickest and easiest way to submit the return is online. Revenue will have pre-populated the online return with information available to us making the return relatively straightforward to complete. Completing a tax return allows an employee to claim additional tax credits such as health expenses or rent tax credit or to declare additional income, as appropriate. Once a tax return has been submitted, a Statement of Liability will issue shortly thereafter, setting out the employee’s final tax and USC position for the year. Refunds, where appropriate, will be made promptly.”

Provisional statistics in relation to Income Tax Returns incorporating the Rent Tax Credit can be found at PAYE Preliminary End of Year Statements.

[ENDS 02/02/2023]

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