Every January, you are issued a P60 certificate from your employer. Many of us take a glance at this and then file it away, maybe never to see it again. If you are one of these people, you may have missed out on years of unclaimed tax back! To ensure you get your money back, our tax experts have explained exactly what a P60 is, and how to use your P60 to claim tax back.
What is a P60?
All PAYE employees receive a P60 ‘End of Year Certificate’ from their employer. Your P60 certificate outlines the details of an employees’ total pay and the PAYE, PRSI, USC and LPT (Local Property Tax) that was deducted by your employer during the tax year. You will need your P60 in order to get tax back, apply for a loan or mortgage, or for any queries relating to your pay or tax for previous years.
One of the most important things to understand about your P60 is that it is not a Revenue assessment of your position and does not indicate your final tax liability for the year. It is simply a summary of tax deducted by your employer. No need to worry if you aren’t up for calculating your final tax liability, our tax experts can review your P60 and determine your final tax liability or if you are due a rebate.
When will my P60 certificate be issued?
Your P60 should be issued between 1 January – 15 February each year. Your employer is required to give you a P60 within 6 weeks of each tax year. If you do not receive your P60 from your employer, reach out to your local revenue office. Currently, only an employer can issue a P60 form; however, you can still reach out to Revenue as they have details of the pay and tax for the year as returned by your employer.
Starting in 2019, P60 certificates will no longer be issued by your employer, as part of PAYE modernisation. Your end of the year statement will be issued by Revenue. (2018 is the final year that you will be issued a P60 from your employer).
What does ‘Tax Credit’ mean on my P60?
The amount of tax that is deducted from your wages or salary is based on the Tax Credit Certificate issued to your employer by Revenue. Tax Credit Certificates are calculated based on the information Revenue has on your personal circumstances (i.e. single parent, married, home carer etc.). It’s important to ensure you regularly update Revenue about your personal circumstances – otherwise you may miss out on the tax credits available to you. No need to stress if you haven’t claimed a tax credit for the past year as some may be claimed after the year ends, resulting in a tax refund.
How do I get my money back?
Many people could be due a tax rebate if:
- They have overpaid their tax throughout the year (even if their P60 certification is indicating otherwise!).
- They are unaware of the tax credits available to them, and not availing of them.
Because of these reasons, so many people miss out on claiming money back. You can apply for a tax rebate for up to 4 years, so if you have never claimed your money back you could be due a large rebate!
How do I know if I am due a tax rebate?
Determining what tax credits are available for you and if you are eligible to claim money back on overpaid tax can be overwhelming. Using a Tax Agent ensures you won’t miss out on any of the money you are owed. Our experts at Irish Tax Rebates have over 20 years’ experience to help you get your money back. Even if you don’t receive a rebate, our policy is no rebate, no fee.
To get started, simply fill out our 60-second application form and we’ll do the rest!