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Index reveals Irish young people more pro-active with the tax man

The latest Customer Taxback.com Index has revealed that younger people are more likely to submit a tax reclaim with Taxback.com in the hope of securing some additional cash. The Index indicates that as we age, we are less likely to apply for our tax refunds. The experts say that there could be a number of reasons behind the apparent reluctance of older people to submit a return; those who have been working for a number of years may feel that they are already claiming their full entitlement or may be afraid that they may owe tax, or many may simply have been willing and financially able to incur higher costs to employ an accountant to look after all of their financial affairs.

The Index from leading tax experts www.taxback.com has revealed that in 2011 males around 25-30 years of age were the most active in claiming their tax entitlements from the Revenue, with several thousand receiving significant refunds . Taxback.com’s latest Index analyses the customer profile of claimants under the headings of age, gender, and reclaim type.

Age % of claimants

19-24 years 11

25-30 years 41

31-35 years 23

36-40 years 12

41-45 years 6

46-50 years 3

51-55 years 2

56-60 years 1

over 60 1

Total 100

According to Darren Byrne of www.taxback.com, “There are approx. 5,600 25-30 year olds in Offaly and from our statistics it looks like these people are the best at getting whats owed. Conversely there are approximately 3,700 56-60 years olds in the county who, by our research, are the worst for seeking their refunds. Thousands of Euro go unclaimed in tax every year. Our average refund is €840 – so thousands of people are effectively throwing this money in the bin by not claiming what they are entitled to. Our Index is interesting as it identifies those who are best/ most proactive with their tax affairs, but it also highlights the age groups, occupations etc. that are slightly more apathetic.”.

The Taxback Index also reveals the differences and changes between claimants in 2011 and the preceding 2010 year.

Byrne commented, “What is always of great interest to people is the most popular tax reliefs/ claims that people go for. Surprisingly, we found that these changed between 2010 and 2011 – with the rent tax credit coming in first place in the former & trade union subscriptions coming first in the latter”. The highlights of the Taxback Index include:

* More males than females claimed tax refunds in 2011 - 57% and 43% respectively

* 25-35 year olds accounted for 64% of all claimants

* Those over 50 were the worst for claiming back – accounting for only 4% of claimants

2011 % of claimants

Trade union subscriptions 16

Service Charges 14

Rent tax credit 13

Health expenses 6

Third-level tuition fees 2

Byrne went on to say, “Empirical evidence has taught us that for all the people who query their tax entitlements with us one third will not be due a refund, another third will choose to go it alone and liaise directly with Revenue to try get their tax back and the remainder will use our services and receive on average €840 in tax refunds”.

Byrne concluded, “The net result of recent Budgets coupled with other cuts may leave people short several thousand Euro in their annual take-home pay. This is a significant amount at any time but unfortunately the effects of the cuts will be amplified because many people in Offaly are already feeling some financial strain. In light of this, we are urging people in Offaly to ensure that they are claiming all the tax credits, allowances and reliefs they are entitled to. Many of these reliefs can still be claimed up to 4 years after the end of the tax year to which they relate so we are advising that people look back over the last 4 years and assess and claim any tax rebate which may be due”.

Taxback.com is a multi-national corporation providing specialist tax return services to private and corporate clients across 100 countries.

Taxback.com was the overall winner of the 2009 Ernst & Young Entrepreneur of the Year Award in Ireland and winner of a Deloitte Best Managed Companies Award.

Established in Dublin in 1996 and led by a team of entrepreneurial business executives taxback.com has 27 offices worldwide, in Europe, Australasia, the United States and South America, and a staff of over 630.

We are a preferred supplier of tax return services internationally and our global partners include VISA Europe, Concur Technologies Inc., Barclaycard Bank, Saongroup.com, CIEE and Informa.

 

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