In a recent press release, Revenue advised that it has commenced the final stage of its 2025 PAYE correspondence campaign and intends issuing letters to PAYE taxpayers who, based on information available to Revenue, may have overpaid or underpaid tax in 2023. As part of the campaign, Revenue has highlighted that 31 December 2025 is the deadline for claiming any additional tax credits or reliefs due for the 2021 tax year.
Revenue’s letter campaign explains that a Preliminary End of Year Statement (PEOYS) is available in myAccount for all PAYE taxpayers. This statement shows if the taxpayers provisional tax position is balanced or if there may be an overpayment or underpayment. To finalise their tax position, taxpayers review the PEOYS and add any missing information when completing their PAYE Income Tax Return.
Addressing concerns that PAYE taxpayers may have if they have an underpayment, Aisling Ní Mhaoileoin, Revenue’s National PAYE manager, commented as follows:
“If you owe Revenue money, we’ll work with you to find a suitable payment option.
We generally collect any underpayment by reducing the taxpayer’s future tax credits over a period of four years. This means that an underpayment of €400 will be collected by reducing the individual’s tax credits by approximately €2 a week over the next four years.
If a taxpayer is entitled to claim any additional tax credits or reliefs, this may reduce any underpayment they have. It is, therefore, vitally important for PAYE taxpayers to file a PAYE Income Tax Return and finalise their tax position.”
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