MONEY Are you paying too much tax?

Are you paying too much tax?


Money Matters
Brid Conroy

No one wants to pay tax. The last Budget saw extra levies being added to all our tax bills, and none of us even want to think about what the next Budget will bring. However, it’s not all doom and gloom on the taxation front. There are numerous tax credits and rebates that can be claimed. Every euro not claimed is a euro not in your pocket, so it is well worth looking at.
Of course, many of us have a mind block when it comes to dealing with Revenue. Every time I mention tax rebates, my Dad recalls with disgust the one time he sent off for a rebate and instead got back a bill. However, things have changed now that information is more freely available.
The Internet has made everything easier and is a great place to start. PAYE workers can go to www.revenue.ie and sign up for PAYE Anytime – just go to the bottom left-hand corner of the screen. It’s very user friendly. I would advise taking the tour if you’re not convinced.
You will be able to see what credits you have been claiming, what else is available and amend accordingly. You can claim as far back as 2006. For non-PAYE workers, key IT1 into the site search button on the Revenue site to see all the same details. You can then claim the relevant credits on your Form 11.
The most commonly claimed tax credits are health expenses, rent relief, trade union subscriptions, age tax credit, third-level tuition fees, rent-a-room relief, flat rate expenses, water charges, bin charges, payments into a private pension scheme and the Home Carers’ Credit.
Often missed is the relief on top-up mortgages and personal loans taken out to repair or improve your main residence.
I claimed for a small top-up mortgage today, and with one phone call, €200 was claimed back. I also claimed for relief going back four years for Health Insurance Premiums paid by an employer and got back €600.
The Home Carers’ Credit can be claimed for looking after someone over 65 or infirm.
If it is claimed one year but your income is too high the next year, you can still claim on a ‘look back basis’. Another quirky one that can be claimed is the Single Parents’ Relief when the children live with you for the holidays.
Medical cards holders, you need to make sure your employer knows you have a card so they don’t stop the Health Contribution and the Income Levy.
If you are self-employed, make sure you tick the box at the beginning of Form 11. Other credits are available for items like tools, books or special clothing not reimbursed by your employer, widows’ tax credit, relief for an incapacitated child, blind tax credit, payments into an income protection scheme, PRSI refunds on contributions to a Private Pension Scheme, Maintenance Payments and Illness and Maternity Benefit paid by your employer.
If you haven’t worked for the full year, you may be entitled to a rebate. Those going back to work after a year or more unemployed can get extra tax credits for three years.
For those preferring to go the old-fashioned route, a letter or phone call to Mayo Revenue at Davitt House in Castlebar (094 9037000) outlining what credits you believe you are missing will work just as well.
And finally if all else fails, and you’ve had enough of the whole tax regime, just do a Bono and move out of the country for 183 days every year!

While every effort is made to ensure that the information given is accurate, it is not a legal document. Responsibility cannot be accepted for any liability incurred or loss suffered as a consequence of relying on any matter published herein.

BRID CONROY FCCA is a Chartered Certified Accountant with a practice in Louisburgh. She works on improving personal finances and the profitability of small and medium-sized businesses. To contact Brid, call 098 66870 or theoldschool@iolfree.ie.