16th December 2019
Revenue has provided INTO with the following information for members on their tax credit certificates, the new replacement for P60s and how to claim tax refunds.
2020 Tax Credit Certificates
Tax Credit Certificates (TCC) for 2020 are currently being issued to all employees and pension recipients. Employees registered for myAccount, and who have elected to receive correspondence electronically, will receive an email notification advising them that their 2020 TCC is available to view in My Documents, which is available in the top right hand corner of myAccount. Employees not registered for myAccount will receive their 2020 TCC in the post.
2020 TCCs contains information explaining that the P60 is being replaced by the Employment Detail Summary for the tax year 2019. More information on the Employment Detail Summary can be found below.
Viewing Pay & Tax details in myAccount
Since the start 2019 employers and pension providers send Revenue details of pay, tax and other statutory deductions for each employee or pension recipient every time they get paid. Employees can now use myAccount to view their current year pay and deduction details as reported to Revenue.
Once logged into myAccount, this service can be accessed by clicking ‘Manage Your Tax 2019’ on the ‘PAYE Services’ card and clicking on ‘View’ beside the employment(s) listed.
If employees have any queries regarding the figures reported they should contact their employer in the first instance. If employees continue to have concerns regarding the figures reported by their employer, they can contact Revenue through MyEnquiries.
Employment Detail Summary (Replacement P60)
As outlined above, since January last, employers and pension providers send Revenue details of pay, tax and other statutory deductions for each employee or pension recipient every time they get paid. This means that employers won’t be issuing a Form P60 at the end of the year. Instead, Revenue will provide employees with an Employment Detail Summary, which replaces the P60. This Summary will be available in myAccount from January 2020 and will contain the employee’s income and deduction details for 2019, as reported to Revenue by their employer. The information can be used in the same manner as the Form P60, for example, as proof of income to a third party.
Once logged into myAccount, this service can be accessed by clicking ‘Review Your Tax’ on the ‘PAYE Services’ card. The Employment Detail Summary will be listed under the tax year 2019.
Preliminary End of Year Statement
From mid-January 2020, Revenue will make a Preliminary End of Year Statement available to all employees. This will provide employees with a preliminary calculation of their income tax and USC position for 2019 and indicate whether their tax position is balanced, underpaid or overpaid for the year.
Once logged into myAccount, this service can be accessed by clicking ‘Review Your Tax’ on the ‘PAYE Services’ card. The Preliminary End of Year Statement will be listed under the tax year 2019.
Claiming a Refund for 2019
In January 2020, the 2019 Income Tax Return for PAYE employee will be available in myAccount. By completing a 2019 Income Tax Return employees can:
- change existing credits/declared income
- declare additional Income e.g. rental income, income from casual work
- claim additional credits/reliefs e.g. health expenses.
2019 Income Tax Returns will be prepopulated with pay and tax details received from employers. Where applicable, other income details, for example payments received from the Department of Agriculture, Food and the Marine (DAFM), will be displayed in an information table within the return. This information is provided solely to assist taxpayers in making their return. Recipients of such payments must still make a declaration of this income, and all other income, on their annual tax return. Benefits of displaying this information are as follows:
- minimises the burden on taxpayers
- makes it easier and faster to complete tax returns
- lessens the scope for errors or omissions
- further enables voluntary compliance.
Once logged into myAccount, employees can file a return by clicking ‘Review Your Tax’ on the ‘PAYE Services’ card and then clicking ‘Request’ beside ‘Statement of Liability’ which will be listed under the tax year 2019.
Changes to Tax Credits announced in Budget 2019
The main changes to Personal Income Tax credits coming into effect from 1 January 2020 are as follows:
- The Home Carers tax credit has increased from €1,500 to €1,600
- The Earned Income tax credit has increased from €1,350 to €1,500
- The Reduced rate of USC for Medical Card holders has been extended by 1 year.
Manage your tax 2020
If employees need to make changes to their 2020 tax record, they can do so now by clicking on ‘Manage Your Tax 2020’ on the ‘PAYE Services’ card in myAccount.
This will help ensure that employees pay the right tax at the right time from the start of 2020.