If you worked in any of these countries, you could be due a Tax Refund

Use your Irish P60 to get a tax refund

#TaxTipsIreland

Around this time of year, your employer should be giving you a P60 form. This form will help speed up your tax refund.

Boring and all as it looks and sounds, the P60 form can translate into something a lot more enjoyable – a tax refund. Yes, that’s right, this boring little piece of paper can facilitate an unexpected windfall. 

All PAYE workers get an annual P60 form from their employer. So what exactly is a P60? It’s a document issued by Revenue which provides a summary of the tax, PRSI and USC deducted by your employer in the tax year. The P60 you’ll get now will outline the tax you paid in 2015.

 

 

So far, so boring you might think. However, Taxback.com can use your P60 to tell you very quickly how much tax you’re due back. We can also check if you haven’t availed of any applicable reliefs then apply for your tax refund.

Best of all, it’s free to find out what you’re owed and we operate on a no refund no fee basis so really don’t have anything to lose. So cheer yourself up during this chilly weather and send your P60 to us now along with a completed Single or Married Tax Pack.

 

So, what is a P60?

Your P60 is an important document for employees and should be treated as such. Employers are obliged to give their employees who worked for them on December 31 a P60 certificate, by February 15 at the latest.

The P60 certificate shows your total pay, tax and PRSI contributions for the previous year. Many of us just shove it to the back of a drawer or leave it in our inbox but they should be stored carefully for future reference. 

The top part of the certificate lists your personal details, ie name, address, PPS number — ensure all are correct. It also lists your tax credit and tax rate band information. This is based on information Revenue has on you. If the information they have isn’t up-to-date, you may not be claiming all tax credits available to you!

Everyone is entitled to at least the personal tax credit, which is €1,650 for single people. There is also a whole range of other credits available, including the rent tax credit, tuition fees, medical expenses, and home carer's tax credit so you should find out now if you can claim!

 

The average Irish tax refund is €1076.17

GET YOURS NOW

 

When do I get it?

Every year, your employee should give you your P60 if you were employed with them on the last day of the year i.e. 31 December (if you’ve left employment during the tax year you should get a P45 when leaving and not a P60 from that employer). You should get your P60 for the previous year by 15 February.

Your P60 is not an indication of tax liability for the year but a report of tax, PRSI and USC deducted by your employer. It provides a summary of the tax, PRSI and USC deducted by your employer in the tax year.Your employer deducts tax based on the tax credit certificate issued by Revenue and Revenue supplies this based on information they have on you. If your circumstances have changed, then they may not be aware if you are entitled to additional tax credits.

 

 

 Here is an example

 

 

 

Download your free guide to PAYe taxes in Ireland here

 

Tax Credits

Everyone is entitled to certain tax credits which reduce income tax liability. Revenue calculates your tax credits based on the information they have on your personal circumstances. Sometimes tax credits aren’t included in payroll and you may be able to claim additional credits at the end of the tax year, resulting in a tax refund.

 

Tax Rates

Tax is charged at a percentage of your income and this percentage depends on the amount of income you earn. The first rate is the standard rate, which is charged up to a certain amount. Anything above this is charged at the higher rate of tax which is 40% in 2016. The amount you can earn until you are taxed at the higher rate is called the standard cut-off point.  

 

 Personal circumstances

  20%

 

 40%

 Single person

  €33,800

  balance

 Married/civil partners 2 incomes

  €42,800

  balance

 One parent family

  €37,800

  balance

 

PRSI (Pay Related Social Insurance)

Your PRSI is made up of social insurance, health levy, and national training fund levy contributions. Your PRSI class determines what rate you pay and how much you can earn without being charged, and it is calculated by Revenue. 

 

The average Irish tax refund is €1076.17

GET YOURS NOW

 

USC

The Universal Social Charge is a tax you pay on your gross income. If you earn more than €12,012 per year, you must pay this. The rates are as follows:

 

 2016

 Rate

  On the first €12,012

  1%

  On the next €6,656 

  3%

  On the next €51,376

 

  5.5%

  Balance

  8%

 

Getting a tax refund

If Revenue has the wrong information for you, then they may not have assigned the correct amount of tax credits. You can use your P60 to check if you're due a tax refund by simply sending it to info@taxback.com or using the PAYE tax calculator here to get a free, no-obligation estimate. Click here now to get a tax refund estimate.

 

Got more questions?

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About The Author

Sinead Gill - PR & Communications Manager @ Taxback.com

Hello. I live and breathe communications and love finding different and original ways to reach an audience. The challenge lies in trying to keep things fresh even when it’s a topic you’ve covered before. Branding, PR and communications are the three cornerstones of what I do so it’s a very interesting job!

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