What do you need to know about your PAYE refund?

Many PAYE workers in Ireland wonder each year if they are due any tax back and what credits and expenses they can claim to increase their refund.
Our guide to Irish PAYE collection system below will help you identify easily any refund possibility.


The definition of PAYE (Pay As You Earn) is simple: paying tax as you earn your income. This system places the responsibility on the employer to ensure the correct amount of tax is deducted and paid to Revenue. All cash allowances (such as salaries, bonuses, pensions etc.) and non-cash benefits (company car, employer paid accommodation etc.) must be paid/provided to employees after deduction of PAYE tax.

However, quite often the amount of tax deducted by the employer is higher than the exact amount that should have been paid under PAYE system regulations, thus resulting in potential PAYE refund available to claim back. Here are some of the most common reasons for this:

  1. Break in employment – if you were unemployed for any part of the year, then you have not fully utilized your PAYE and Personal tax credits.
  2. Employer error – your tax liability has been incorrectly calculated by your employer. This is a common mistake when you change your job.
  3. Termination of employment – in case you were made redundant you are entitled to receive part or all of your redundancy payment tax-free.
  4. Marital status change – if your personal circumstances have changed through marriage, separation or divorce, it’s important to review your tax position as you might qualify for additional tax credits.
  5. Tax Credits and Expenses – there are dozens of tax credits that can increase your refund drastically. Check out our summary on Credits, reliefs and expenses to find out more on what you can and can’t claim.


Irish PAYE collection system is much more complex and this is just a short guide which aims to help you understand how any tax refunds are directly related to your personal circumstances. Many taxpayers are missing out on hundreds of EURO in unclaimed tax without even knowing it! Don’t be one of them, get your tax refund!

Use Irish Taxes free tax refund calculator to estimate if you are due any tax rebate or register with us today for a free review of your tax position for the last four years.