Noticed your take-home pay seems lower than it should be? If you're looking at your payslip and something doesn't add up, you're not alone. Thousands of Irish workers have incorrect tax deductions each year—and most don't realise they can claim the overpaid tax back.
The causes range from emergency tax when starting a new job to administrative errors with your tax credits. Whatever the reason, the money you've overpaid belongs to you—and with the right help, getting it back is straightforward.
📊 Key Facts About Incorrect Tax Deductions
- Common causes: Emergency tax, wrong credits, incorrect rate band
- Average overpayment: €800 – €2,500 per year
- Backdate period: Up to 4 years (2021-2024)
- Refund time: Typically 5-10 working days
Why Is Too Much Tax Being Taken?
There are several common reasons why your employer might be deducting more tax than they should. Understanding the cause helps, but fixing it and recovering your money is what really matters.
Emergency Tax
The most common culprit. When you start a new job and Revenue hasn't yet shared your tax details with your employer, you're placed on emergency tax. This means you don't get your full tax credits, and a much larger portion of your wages goes to tax.
Emergency tax can cost you hundreds of euros per month. If you've recently changed jobs or started new employment, there's a high chance you were affected.
Incorrect Tax Credits
Your tax credits reduce the amount of tax you pay. In 2025, most PAYE workers are entitled to €4,000 in credits (€2,000 Personal + €2,000 Employee). If these aren't being applied correctly—or at all—you'll pay significantly more tax than necessary.
Wrong Rate Band
Income up to €44,000 (single person, 2025) is taxed at 20%. Income above this is taxed at 40%. If your rate band is set incorrectly, too much of your income could be taxed at the higher rate, costing you thousands over time.
Multiple Jobs or Split Credits
If you have two jobs, receive a pension alongside employment, or your tax credits are split between employers incorrectly, it's easy to end up paying too much. These situations are complicated to sort out yourself—but our specialists handle them every day.
💡 Real Example
John from Galway changed jobs twice in 2023. Each time, he was placed on emergency tax for several weeks. He assumed it would sort itself out—it didn't. When we reviewed his records, he was owed €1,740 just from those job changes, plus additional reliefs he didn't know about.
Signs You're Paying Too Much Tax
Not sure if you're affected? Look out for these warning signs:
- "EMERG", "Week 1", or "Month 1" on your payslip indicates emergency tax
- Tax credits showing €0 or unusually low amounts
- Take-home pay lower than colleagues on similar salaries
- Recent job change in the past year
- Started your first job without setting up tax properly
If any of these apply, you're likely owed a refund. The question is how much—and that's what our experts find out.
Other Reliefs You Might Be Missing
Incorrect tax deductions are often just the start. When we review your tax history, we look at everything. Many clients discover they're entitled to reliefs they never knew existed:
Rent Tax Credit
Renting your home? The rent tax credit provides up to €1,000 per year. It can be backdated to when it was introduced, meaning renters are often owed significant amounts they never claimed.
Medical Expenses
Doctor visits, prescriptions, dental work, physio—all qualify for 20% tax relief. Most people have medical expenses but never think to claim them.
Work Expenses
Depending on your job, you may be entitled to flat rate expenses or relief on actual work-related purchases. Nurses, teachers, healthcare workers, and many other professions have specific allowances.
Working From Home
If you've worked from home since 2020, you may qualify for e-Working relief on electricity, heating, and broadband costs for the days spent working remotely.
How Much Could You Get Back?
The amount varies based on your situation, but here's what we typically see:
The average refund our clients receive is €1,080, but those with tax issues spanning multiple years often receive significantly more.
Why Let Us Handle It?
Sorting out incorrect tax can be confusing and time-consuming. Our specialists do this every day—we know exactly what to look for and how to maximise your claim:
- Complete review: We examine your full four-year tax history, not just the obvious issues
- Expert identification: Our team spots patterns and missed reliefs that most people overlook
- All paperwork handled: No forms to fill, no calls to make—we do everything
- No refund, no fee: If we don't get you money back, you pay nothing
Learn more about how our process works and our transparent fees.
Think You're Overpaying Tax?
Our experts will review your records and find exactly what you're owed.
Get Your Free Review →No refund, no fee • Average refund €1,080 • TAIN: 77632V
Frequently Asked Questions
How do I know if I'm on emergency tax?
Check your payslip for codes like "EMERG", "Week 1", or "Month 1". Also look for unusually high tax deductions or tax credits showing as €0. If you've recently started a new job and your take-home pay seems low, emergency tax is likely the cause.
How far back can I claim overpaid tax?
You can claim refunds for the past four tax years. In 2025, that means 2021, 2022, 2023, and 2024. We review all four years to ensure you receive everything you're owed.
How long does the refund take?
Once we submit your claim, refunds typically arrive within 5-10 working days. The money is paid directly to your bank account by Revenue.
Will this affect my current tax?
Claiming a refund for overpaid tax doesn't affect your ongoing PAYE. It simply recovers money you shouldn't have paid. If there are issues with your current credits, we can identify those too.