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9 out of 10 taxpayers are not sure of what rate of tax they pay

Written by Robert McHugh, on 15th Mar 2021. Posted in Financial

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Most taxpayers in Ireland are unsure as to how much tax they hand over to Revenue each month. This is according to the first instalment of the year of the Taxback.com Taxpayer Sentiment Survey Series.

The tax refund specialists asked over 3,000 taxpayers throughout the country, from their customer database, how well they know their own tax affairs and whether or not they would like to learn more. The findings revealed a dearth of knowledge on the subject, but also a big appetite to learn.

Highlights from the Taxback.com survey revealed:
• 34% said they had “no idea” what rate of tax they’re paying
• Just 12% know exactly what they pay
• 46% do not understand their payslip – but the majority said they would like to know more
• 89% of respondents said they could see real benefits from an employer roll-out of a financial education programme

Taxback.com report that, when compared with a similar 2016 survey, it appears the number of those who don’t have any idea about their tax rate is actually growing, increasing from 26% to 34%.

Commenting on the survey, Consumer Tax Manager at Taxback.com, Marian Ryan said, "In many ways, the findings are understandable – tax is just a given for most people – PAYE employees don’t even see it come out of their wages as it is deducted at source – so for them, it’s income they never had. What’s more, our experience would suggest that people just don’t know who to ask about general finances. But it’s very important to know about your personal tax affairs."

She added, "Although your employer is responsible for deducting your taxes from your income, Revenue will always state that it is each individual’s own responsibility to ensure their tax affairs are in order and they are receiving all tax credits they are entitled too. Your employer will deduct tax based on your Tax Credit certificate, but only you can add additional tax credits to this."

Source: www.businessworld.ie

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