Nine out of 10 or 90 per cent of taxpayers are not sure of what rate of tax they pay, according to a new survey from Taxback.com.
The survey also found that there was a huge appetite to learn. 89 per cent of people said they would like to see an employer-driven financial education initiative for staff.
According to the first instalment of the 2021 Taxpayer Sentiment Survey Series, half of taxpayers said they do not understand their payslip.
The tax refund specialists asked more than 3,000 taxpayers throughout the country. They asked how well they know their own tax affairs and whether they would like to learn more or not.
They said the findings revealed a dearth of knowledge on the subject, but also a big appetite to learn.
Some of the key findings of the survey included: 34 per cent said they had “no idea” what rate of tax they are paying and just 12 per cent know exactly what they pay.
46 per cent of people said they do not understand their payslip – but the majority said they would like to know more.
Speaking about the survey, Marian Ryan, consumer tax manager said: “Just over 1 in 10 respondents said they were completely sure of what how much tax they pay. This leaves an awful lot of people who could be in the dark when it comes their taxes.
General finances
“In many ways, the findings are understandable – tax is just a given for most people – PAYE employees don’t even see it come out of their wages as it is deducted at source – so for them, it’s income they never had.
“What’s more, our experience would suggest that people just don’t know who to ask about general finances. But it’s very important to know about your personal tax affairs.”
Taxback.com said when compared with a similar 2016 survey, it appears the number of those who do not have any idea about their tax rate is actually growing, increasing from 26 per cent to 34 per cent.
Ms Ryan said “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.”
“It’s notable that 35 per cent of people would like to know more about their payslip and the workings of it."
She said these people probably just do not know who to ask, and she said if the information and advice was more accessible, then people may actively engage with their finances and taxes a bit more.
She added “Our survey reveals a desire for employers to take an active role in educating their workforce on personal finance and tax matters.”
