Are PAYE Tax Credits prorated based on Residency?

[the-macho-man]

Hello,

Apologies if this has been asked previously however I can't seem to find a clear answer on Revenue's website, Boards or in previous posts in AskAboutMoney. In June, 2016 I moved to Canada. I've just completed my tax return in Canada for 2016 and here they prorate their version of the PAYE Tax Credit based on the number of days you were living in Canada in the year you arrived. I'm wondering if the same is true for Ireland.

I recently requested a P21 Balancing Statement from the Irish Revenue and got back a whack of tax mainly because it was using the my full PAYE Tax Credit as part of the refund calculation. However I'm a little concerned that I didn't send in a P50 form when I ceased working in June of 2016 as Revenue recommends on their website (I only found out about this now while researching this). To quote them:

"If you work in Ireland for only part of a year you may be entitled to a refund of income tax paid when you cease working. Where you have paid income income tax you should complete [broken link removed]Form P50 (PDF, 288KB) and send it to your Revenue office together with Form P45 (Parts 2 & 3) which you should receive from your employer when you cease employment."
- Moving/Returning to Ireland – A Revenue Guide, Revenue's website.​

My concern is that I have used my full Irish PAYE Tax Credit for the year in Ireland even though I was only resident in Ireland for half the year. Since I didn't send in a P50, I'm curious if the Revenue will come hunting for part of the refund when I return to Ireland.

So in short, does anyone know if you leave Ireland during the year should your PAYE Tax Credit be prorated to account for that year? If so is the P50 how that is done?

If anything is unclear at all let me know and I appreciate any help with this.

Thanks & regards.

 

[T McGibney]

As a PAYE employee, you should be able to avail of split-year treatment for 2016. [broken link removed]