TAX RE­LIEF MUST-DO’S

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE -

You can get a full list of flat-rate em­ploy­ment ex­penses which var­i­ous work­ers are en­ti­tled to on the web­site of the Rev­enue Com­mis­sion­ers. The best al­lowances are for min­ers and those who work in an or­ches­tra. Or­ches­tra work­ers can get an an­nual al­lowance of €2,476 — as long as they’re work­ing for the RTE Con­cert Or­ches­tra or the RTE Na­tional Sym­phony Or­ches­tra. Min­ers can get an an­nual al­lowance of up to €1,312. Work­ers in the de­fence forces be­came en­ti­tled to flat-rate ex­penses last sum­mer. The flat-rate ex­pense, which is for €150 a year, is avail­able for the spe­cial­ist clean­ing of cer­e­mo­nial uni­forms for all en­listed members of the de­fence forces who are not in re­ceipt of a uni­form re­plen­ish­ment al­lowance. As the de­fence forces flat-rate ex­pense be­came ef­fec­tive from 2015, it can be claimed for the year 2015 and on­wards. You must be an em­ployee to get flat-rate ex­pense al­lowances — you can­not claim them if you’re self-em­ployed. Don’t throw away re­ceipts for doc­tors’ vis­its, pre­scrip­tions and other med­i­cal bills as these may be needed to val­i­date a claim for tax re­lief on such ex­penses. “Rev­enue do come look­ing for ev­i­dence to back up a claim from time to time, es­pe­cially if you’re mak­ing a large claim, said No­rah Col­len­der of Char­tered Ac­coun­tants Ire­land. You can keep a elec­tronic record of your ex­penses on Rev­enue’s mo­bile app, Re­vapp (through its Re­ceipts Track­ers ser­vice). Be care­ful not to claim tax back on med­i­cal ex­penses which don’t qual­ify for re­lief. For ex­am­ple, you can­not usu­ally get tax re­lief on cos­metic surgery — though you may qual­ify if the surgery was re­quired to cor­rect a health is­sue. You’re not en­ti­tled to tax re­lief on rou­tine den­tal work, such as fill­ings — though you can get re­funds on the cost of crowns, ve­neers and root canal treat­ment. One valu­able tax re­lief which is not very well­known is the favourite nephew or niece re­lief, ac­cord­ing to Eileen Dev­ereux, com­mer­cial direc­tor at Taxback.com. With this tax break, your niece or nephew could in­herit up to €320,000 tax-free from you, rather than up to €32,500 (the nor­mal tax-free limit for in­her­i­tances re­ceived by nieces or neph­ews). To be el­i­gi­ble for the re­lief, which al­lows you to treat your nephew or niece as your ‘child’ when giv­ing them a gift or in­her­i­tance, he or she must have worked for you for a cer­tain amount of time — and only be in­her­it­ing as­sets used in your busi­ness. You claim this re­lief af­ter you have re­ceived the in­her­i­tance — and within a cer­tain time frame. From next year, you will be able to check your tax cred­its and the amount of tax you have paid in an end-of-year state­ment which you will get from Rev­enue. This is be­cause of a new PAYE sys­tem which is kick­ing in on Jan­uary 1. “Un­der the new sys­tem, 2019 will be the last year that employees will see a P60 — and the P60 it­self will be for 2018,” said Col­len­der. “From then on, employees will get an end-of-year state­ment from Rev­enue.“An­other change is that employees who move em­ploy­ment will no longer get a P45 from the em­ployer they are leav­ing.

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