Tax return season triggers anxiety in over half of workers, according to a new survey.
More than 300,000 people who are self-assessed for tax have to submit their 2024 tax return, and pay any remaining tax due, by October 31st – or November 19th if they are filing online.
More than half of them said the very phrase “tax returns” made them feel more stressed or anxious, according to the survey by Fasttax.ie, a recently rebranded online tax advisory business that was formerly known as Paylesstax.
Although 29 per cent of self-employed people said they were organised in their tax affairs and 24 per cent classifed themselves as confident, 53 per cent said they felt apprehensive, and dread filing returns.
RM Block
Nearly 40 per cent of respondents said the “fear of making innocent mistakes that could be costly” was their biggest worry when filing taxes. Just over three in 10 said they felt “overwhelmed or confused” by the whole process.
Many taxpayers are also missing out on tax credits and reliefs to which they are entitled, with the Revenue Commissioners regularly urging people to take time to claim back what they are owed.
That includes PAYE taxpayers, many of whom can claim tax back in relation to medical bills, college fees, mortgage interest, rent or working from home.
The Fasttax.ie survey said fewer than half of Irish adults (44 per cent) were confident that they are claiming all available tax credits, deductions and reliefs.
[ Does the Revenue owe you a tax refund?Opens in new window ]
Figures from Revenue for 2023 estimate that taxpayers paid €683 million more in tax than they needed to by failing to claim certain reliefs. It said that about 60 per cent of tax returns led to refunds – averaging €738 each – for that year.
“The research highlights a clear knowledge gap when it comes to filing an Income Tax Form 11,” Fasttax.ie said.
“There is clearly confusion around filings for capital gains tax compared to capital acquisition tax,” said Cathal Maxwell, founder of Fasttax.ie. “For example, only 27 per cent of people correctly identified that self-assessed individuals should include profits from investments (for example, in shares and cryptocurrencies) on their Form 11. And 29 per cent incorrectly thought that inheritances should be recorded in a Form 11.”
Close to three-quarters of those who file their own tax returns said they faced “significant challenge” when using Revenue’s online service (ROS). Four in 10 admitted to a “lack of knowledge” around filing requirements as their main frustration.
But more than one in three respondents said the system was too complex, with a similar number saying they find it difficult to collate all the necessary documentation required to complete the annual filing.
Many self-employed people will go through an accountant rather than do the filing themselves but Fasttax.ie said its survey also showed a degree of frustration among this group.
[ More than 500,000 workers in Ireland are due tax refunds they have not claimedOpens in new window ]
One in four complained about high fees with almost half saying they are overpaying for tax filings and another quarter saying the process is slow and time-consuming.
Commenting on the findings, influencer Kel Galavan, the woman behind MrsSmartMoney.com, said: “This latest research clearly illustrates that, for many, the tax season is a period of genuine stress and uncertainty.
“From fear of errors to the complexity of the process, it’s clear taxes are a source of anxiety and confusion for a majority of Irish adults.”
