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THIS THURSDAY IS tax filing day for those making their returns online. This annual obligation extends far beyond large corporations and business owners with freelancers, sole traders, proprietary directors, accidental landlords and even certain employees required to file returns.
Missing this deadline can result in significant penalties and interest charges, making it essential for everyone who is liable to file their taxes correctly and on time.
To make things a bit simpler, below are seven key tips to help you navigate the tax filing process in Ireland. These practical suggestions will ensure you don’t miss out on potential tax reliefs and credits that could reduce your overall liability and will make your tax filing experience far less stressful.
Flat Rate Expenses are a form of tax relief available to employees in specific sectors who incur costs as part of their job. These costs might include tools, uniforms or other work-related equipment. The amount you can claim varies depending on your occupation, as Revenue sets a fixed amount for each category of work. For example, healthcare professionals, teachers and mechanics all have designated flat-rate expenses that they can claim.
To make the most of this relief, check if your job category qualifies for a flat rate expense. You can do this by visiting the Revenue website or consulting with a tax advisor. Many employees are unaware of this entitlement and miss out on valuable tax relief.
Once you confirm your eligibility, include this claim in your tax return — it’s a straightforward way to reduce your taxable income. Make sure to keep records of any related expenses, even if they are covered under the flat rate category, as Revenue may request evidence if your claim is audited.
Medical expenses are another often-overlooked area where taxpayers can claim relief. You can receive a tax rebate on qualifying medical costs not covered by insurance or other reimbursements. These expenses include GP visits, consultant fees, prescriptions, dental treatments (like orthodontics) and even some alternative therapies if prescribed by a medical practitioner.
The tax relief rate for medical expenses is currently 20%, which can significantly reduce your tax bill if you or your family had substantial healthcare costs during the year. Be diligent in gathering receipts and documentation for all your out-of-pocket medical expenses. If you forget to claim these on your current tax return, you can go back up to four years to amend your previous filings, potentially recouping a substantial amount of tax paid.
If you’re contributing to a personal pension or PRSA (Personal Retirement Savings Account), it’s vital to claim the associated tax relief. These contributions are an excellent way to reduce your taxable income while simultaneously securing your financial future. The relief is granted at your highest rate of tax—either 20% or 40%, depending on your income bracket.
To ensure you claim this relief, make sure your contributions are reflected in your tax return. If you’re contributing directly through your employer, this is usually done automatically via payroll. However, if you are making personal contributions outside of payroll, you’ll need to include this in your self-assessment.
Not only does this reduce your tax liability, but it also incentivises you to save for retirement. Remember, there are annual limits on the amount you can contribute, which vary by age, so keep this in mind when planning your contributions.
Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions, which only reduce your taxable income. It’s crucial to be aware of the various tax credits available to you and ensure you are claiming everything you’re entitled to. Some common credits include the Personal Tax Credit, PAYE Tax Credit and the Home Carer Tax Credit, among others.
In recent years, additional credits have been introduced, such as the Dependent Relative Tax Credit and the Age Tax Credit for those over 65. If you’re married or in a civil partnership, you may also benefit from the Married Tax Credit or the Single Person Child Carer Credit if you are a single parent. It’s worth reviewing your eligibility for all available credits each year, as claiming them can substantially reduce your tax bill. Use Revenue’s online guides or consult with a tax professional to make sure you’re not leaving money on the table.
The Irish government has introduced several new tax credits in recent years to alleviate financial pressures, especially in the housing market. Notably, the Rent Tax Credit and the Help to Buy scheme are significant incentives that taxpayers often forget to claim.
The Rent Tax Credit, reintroduced in 2023, allows tenants to claim up to €500 (or €1,000 for jointly assessed couples) per year on rent paid for their primary residence. This is particularly beneficial for renters in high-cost areas, providing some much-needed financial relief.
A new relief in 2023 is the Mortgage Interest tax credit, which is a relief of 20% on increases in Interest paid on Principal Private Resident Mortgages. A tax credit of 20% is allowable on the increase in Interest paid between 2022 and 2023.
Additionally, if you’re a first-time buyer purchasing a new home, you can avail of the Help to Buy incentive, which offers a rebate on income tax paid in the last four years up to €30,000. This credit can significantly boost your savings when buying a property, making it a vital benefit to claim if you are eligible. Both these credits are easy to overlook so take the time to explore your options fully.
If you’re renting out a property, either as a full-time landlord or an accidental one, it’s essential to understand the tax implications and available reliefs. Rental income is taxable, but you can offset this with various deductions such as mortgage interest, maintenance expenses and repairs.
Also, if you have incurred a loss in a rental year, this can be carried forward to reduce your tax liability on future rental income. Keeping detailed records of all rental-related expenses is crucial for maximising these reliefs. Be mindful of recent changes in tax regulations regarding rental properties, as these can impact your overall tax position.
For self-assessed taxpayers, it’s not just the filing of last year’s taxes you need to worry about but also the payment of preliminary tax for the current year. Preliminary tax is essentially a payment for the current tax year and must be at least 90% of your final liability for the year or 100% of your previous year’s tax liability, whichever is lower. Failure to pay sufficient preliminary tax by the deadline can result in interest charges.
To avoid these penalties, plan your cash flow to ensure you can cover both your final tax bill and your preliminary tax. Consider setting aside a portion of your income each month to meet this obligation.
Hopefully, these tips will make the process of filing a little less stressful. And remember, seeking professional advice or using Revenue’s online resources can ensure you stay compliant and take advantage of every available tax relief.
David Quinn is Head of Business Growth at business advisory firm Nexiō.
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Everybody should ban/boycott the rag! Hillsborough was enough of a reason on its own
@Soccer T’s: Some people still believe in freedom of the press believe it or not.
@Soccer T’s: some of us still believe in the freedom of the press believe it or not.
@Charlie Hebdo:
the sun is not freedom of press it is rupert murdoch and the belief system. There is a huge difference between cutting edge analysis and insulting, lazy and vindictive journalism.
@Charlie Hebdo: and some of us believe in the truth
@ktsiwot: I am no fan of the Sun but I believe in freedom of the press for all news outlets, not just the ones I like or agree with.
@Charlie Hebdo: freedom of the press to insult and incite a whole community through disgusting narrow minded racist and elitist articles? Absolutely.
And in turn we should all exercise our right to boycott this sensationalist braindead rag of pure tripe.
Agreed?
@Charlie Hebdo: Did I say they should be closed down or anything like that? No I said that people/individuals should make the choice to boycott the rag. The more that boycott them the less viable their business model.
“Everybody should ban/boycott the rag! ”
Ban ≠ Boycott.
Reading comments here it appears “everyone” already boycotts it and have done for years.
@Charlie Hebdo: You’re looking for drama where there is none. If I had said that the paper should be shut down, you would have a valid point but I’m afraid you will have to find your drama elsewhere today. People/ organisations being encouraged to ban/boycott is not censorship!!
@Charlie Hebdo: I don’t think “everyone” comments on the journal but I may be wrong.
@Charlie Hebdo: Using “Freedom of the Press” as a means of defending The Sun is an insult to real journalists who risk their lives or livelihoods to report the truth. This guy was a glorified troll looking to insult and degrade people for the sake of it.
If you can’t see the difference you are an utter fool.
@Soccer T’s: You probably are wrong as you’ve been wrong in all your other commentary, there’s a pattern emerging.
@Charlie Hebdo: Aha maybe the trend is your lack of understanding/education. Nice try!
@Ricky Spanish: should the right of freedom of the press only apply to outlets you like or agree with?
“insult to real journalists who risk their lives or livelihoods to report the truth”
FYI very few journalists risk their lives anymore, case in point thejournal.ie
“insult to real journalists who risk their lives or livelihoods to report the truth”
Any journalist working for the Sun would meet your criteria just by being in Liverpool, Ricky.
@Charlie Hebdo: And Charlie was responsible for the deaths of so many innocents including his own workers and I am sure in the KKK.English Defence League HQ MacKenzie is a true patriot.
@Charlie Hebdo: they can print what they want. I also have the freedom to not buy or read the rag. Well done everton.
@Charlie Hebdo: I think you’re wilfully missing the point in order to soap-box. No one’s calling for The Sun to be banned. Simply Everton FC are availing of their own right to reply and offering a rebuttal. That they, a private company, are choosing not to engage with another private company whose practices they fundamentally disagree with, is hardly tantamount to shutting down the press.
@Charlie Hebdo: Some of the most thought provoking and enlightening journalism comes from points of view I disagree with. This article was neither of those things. What exactly has this guy added to the public discourse with this article? It’s trash and people have every right to voice their criticism without being accused of harming the freedom of the Press.
@Fergal O’ Reilly: ” No one’s calling for The Sun to be banned” . . . The OP called for it to be banned and that is what my original comment was responding to. also Everton have banned the newspaper.
@Charlie Hebdo: Believe it or not, some people don’t want gutter journalism.
@Charlie Hebdo: Maybe you struggle with basic language but if you would like to re-read my original comment you will find that I did not call for the Sun to be banned. I said that people and organisations should make that decision. If I had said that “the sun should be closed down or banned” you would have a very valid point but it’s obvious that you are just grandstanding for the sake of it.
@Charlie Hebdo:
Wow charlie, you really are going all out to defend the sun. How on Earth did you find yourself in such an unenviable position. The sun paper is in no way being censored or discouraged from printing its tripe, EFC have simply decided that they don’t want the suns product on their private property. Like a children’s food store might choose not to sell rat poison on their shelves. But all of this has already been explained to you, but you seem unwilling or unable to process sensible explanations or arguments. You seem dogged in your defence of one of the most disgusting papers ever to go to print. Are you proud of yourself? Is anyone proud of you?
@Peedur Dante: To be fair to him he’s defending freedom of the press rather than the Sun specifically
@Soccer T’s:
And I’m pointing out to him that the freedom of the press is not being attacked here. This is a different matter all together. He is confusedly arguing that EFC’s actions towards the sun constitutes an attack on the free press. This is not the case, and if he felt so passionately about the freedom of press why not comment on an article about vladimir putin rather then defend the sun so vigorously.
@Soccer T’s: Labour Party and Tory party should be treated like sc€m for this and the other covers ups.
Don’t have anything against British people but their government are consistently awful.
How you can trust a government to do good abroad when they even have such disdain for their own people.
The double standards in the press here w.r.t British parties is galling.
@Soccer T’s: best selling paper in England and the sun is printed in Knowsley in Liverpool so as to boycotting it not all Liverpool is so you all wasting your time just get over yourself and move on , great paper buy it everyday.
@Brian OConnor:
If you buy the sun everyday and consider it a great paper, all I can do is pity you.
Good news. Horrible publication and an even more horrible man.
Everton fans don’t buy that rag, as it insulted their family members. The Mail, Express any rag of a paper owned by Rubert Murdoch.
@Ossi Fritsche: the family that use to own the mail owned Everton for many many years.
How anyone still buys that rag defies belief..
@SteveW: Low IQ, so low in fact that they can’t even use a smartphone.
28 years late is better than never. They should have shown solidarity with Liverpool over their articles on Hillsborough
@Alan Lawlor: Huh? What you talking about? Everton have never shown anything but solidarity with Liverpool.
@Alan Lawlor: ya… because everton hasn’t shown enough support over the years. .. wind your neck in lad
@Alan Lawlor: Alan Liverpool only banned the Sun 2 months ago so Everton should get no criticism here.
@Alan Lawlor: still going on about that.
@Alan Lawlor: A bit of an ill informed comment. Everton football club and supporters have ALWAYS shown solidarity with LFC in the fight for justice for the 96 fans that died at Hillsborough.
https://youtu.be/Nmzu29eRhMU
@Alan Lawlor: and stupidest comment of the week goes to…..You.
@Alan Lawlor: Troll.
Haven’t read that rag in years. The article was published to upset Liverpudlians on the eve of the anniversary of the Hillsborough tragedy and does not surprise me one little bit. The editor should be fired for publishing it and the author should be shot for….just being himself.
The Sun is only one of two publications that I’ve actually wiped my ar$e with.
@Muiris O’Daltuin: My sympathies to your butthole. It’ll never be the same again.
@Muiris O’Daltuin: better not download the app then.
@J.D. Finnerty: It was no Andrex quilts, thats for sure. Cheap paper for cheap words.
I thought the sun was a great news paper. Both it and the Daily mail are often only a euro. Which is a quarter the price of smoke pellets for testing newly installed stoves. I honestly used to buy them for that until I realised I was supporting them by buying it, so now I pay more for another news paper just to burn.
@Bilbo Baggins: you are a modern day Joan of Arc.
Great news rag of a ‘paper’
What I don’t understand is why The Sun is still going, when everybody claims to not buy it.
The Sun like all of Rupert Murdoch’s publications and TV outlets are pure dirt.
Says a lot about the eNglish, when this is their most popular paper.
300k a year for a colume! I’m in the wrong line of business. No wonder he’s on holiday
I automatically assume that anyone who gathers their information from outlets like the sun, daily mail, etc. are buffoons whose opinion should be ignored at all costs.
Their 99% rags most of them but that sc$m is on another level
This sets a very dangerous precedent and creates a chilling effect for all sports journalists. Restricting the free press is dangerous.
@Charlie Hebdo: demanding the press reports the truth seems reasonable
@Charlie Hebdo: what he wrote was nothing got to do with sports journalism. Allowing these views are more dangerous. We have a right to free press alright but not the opinion and ramblings of a spiteful hateful person.
@Joe Travers: in other words Joe you just disagree/dislike his views and want them suppressed, freedom of the press should apply to all news outlets not just the ones you like or agree with.
@Charlie Hebdo: dangerous precedent my ar$e. You’re still living in the 70s are ya when journalists actually reported News rather than deliberately incite hatred, persecute and vilify persons of their own choosing and sensationalise tragic stories.
In fact small gestures like this might actually prompt editors to be more responsible in their reporting.
Unlikely though.
@Charlie Hebdo: Err just to educate you, Kelvin Mc Kenzie the author of the offending article, is not a sports journalist.It must be dizzy up on your high horse.
It may be a loathsome publication but I think a complete ban on it or its employees sets a dangerous precedent. Sanitised news/reporting only results in dumbed down information.
Everton ban the sun from its stadium…it’s going to a dull aul place without any sun!!
Jesus what a stupid pc world we live in,so what the sun said something bad about someone what’s new, ppl these days need to grow up and grow a pair
The paper is a rag, it must be said, and that phrase, “Any publicity is good publicity.”, makes me think they won’t care one bit about all this, and might actually be secretly delighted their paper is in the news.
A comic of a newspaper….actually that’s not fair on comics…a pure gutter rag…
have your say