Site Owners Forums - Webmaster Forums - If my taxes are overpaid how do I receive a refund?

An underpayment will remain on your tax record with Revenue until it is paid. Your P21 or end of year review will show if you have underpaid tax. It will also inform you how the underpayment will be collected. Usually, you will not pay money directly to Revenue. The easiest way for Revenue to collect the underpayment is to reduce your tax credits in the following year.

For example, if you get a personal tax credit of €1,650 and a PAYE tax credit of €1,650 your total tax credit for 2016 is €3,300. If you underpaid €90 tax in 2015, your total tax credit in 2016 will be reduced by €90. (€3,300 - €90 = €3,210) In this case, your total tax credit for 2016 will be changed to €3,210.

An underpayment can also be deducted from any tax relief you are due. For example, if you have underpaid your income tax by €100 but are also due to get tax relief of €400 on medical expenses, the underpayment of €100 will be deducted from the overpayment of €400 and you will get a refund of €300.

If you have a large underpayment which can not be easily repaid by reducing your tax credits the following year, you can arrange to pay Revenue directly by cheque, banker’s draft or postal order. You can pay the total amount in one payment or in instalments. You will need to contact your district tax office about repaying the underpayment.

Outstanding tax due to Revenue can incur interest and penalties. If you refuse to repay tax that is due Revenue can take you to court.