Do you understand your payslip?

If you’re not quite sure what all those numbers really mean, there’s no reason to feel bad about it, in fact, a whopping 46% of Irish employees admit they haven’t a clue.

According to a survey of over 3,000 taxpayers throughout the country, 34% of respondents said they had “no idea” what rate of tax they’re paying.

The survey, carried out by Taxback.com, showed that just 12% of employees know exactly what they pay to Revenue.

“Just over one in 10 respondents said they were completely sure of how much tax they pay. This leaves an awful lot of people who could be in the dark when it comes to their taxes,” said Marian Ryan, Consumer Tax Manager at Taxback.com.

Even though PAYE tax is deducted at source, Revenue will always state that it is each individual’s own responsibility to ensure their tax affairs are in order and they are receiving all tax credits they are entitled to.

“Your employer will deduct tax based on your Tax Credit certificate, but only you can add additional tax credits to this.” said

The knowledge gap is widening

When compared with a similar 2016 survey, it appears the number of those who don’t have any idea about their tax rate is actually getting worse, increasing from 26% to 34%.

The findings revealed a dearth of knowledge on the subject, but also a big appetite to learn.

“It’s notable that 35% of people would like to know more about their payslip and the workings of it.” said Ryan.

“These people probably just don’t know who to ask. Perhaps if the information and advice was more accessible, then people may actively engage with their finances and taxes a bit more. We’re reluctant in this country to claim the reliefs and refunds owed – which is a shame because many households throughout the country could really benefit from that added cash injection.

“This knowledge gap needs to be addressed – perhaps by way of a public information campaign rolled out by Government or Revenue. Employers too could have a role to play.”