DON’T WRITE OFF 2015 as a dud-year yet – because last year could be putting more money in your pocket.
There are 52 weeks and one day in a normal 365-day year, so the extra day each year accumulates and every five to six years, this creates a ‘week 53’ scenario, where 53 weekly payments occur within a year.
Last year, 31 December fell on a Thursday, making 2015 a kind of ‘tax leap year’. This means that employees who were weekly, fortnightly or four-weekly paid will have had an additional weekly/ fortnightly/ four-weekly payment.
Meaning you could be owed an extra week’s worth of tax back for 2015.
There is a caveat though – the amount of tax you’re owed is dependent on your particular circumstances, and can sometimes result in you owing the Revenue tax.
How to claim your tax back
This extra week’s worth of tax is included in the tax you claim back for the year - and can be claimed by requesting a PAYE balancing statement, or a P21 statement, at the end of each year.
A P21 is a review of income tax and USC liability for the year. It contains details of total income from all sources and gives a breakdown of tax credits, income tax and Universal Social Charge (USC) paid.
You can claim your P21 up to four years back – meaning you can claim tax back from four years ago, and if you haven’t claimed tax back before, you’re in for a minor windfall.
The quickest and easiest way to request a P21 is by using PAYE Anytime or completing the eForm 12 which is accessible through Revenue’s online tool myAccount. Taxpayers can register for myAccount here.
Once you register, requesting your form is as simple as clicking on a year, then a button that says ‘request P21 form’.
If you do request the form online, your form will usually arrive in the post within five working days – with the amount of tax you’re due back attached in cheque form.
More information is available here on Revenue’s website.
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