Thomas McGibney & Company

 Chartered Accountants & Registered Auditors

 Main Street, Virginia, Co. Cavan.   Phone 049 8549966  


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Registered to carry on audit work and authorised to carry on investment business by the Institute of Chartered Accountants in Ireland

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Make the Most of Your Tax Relief!

Here we look at some tax incentives and reliefs that are available to individuals and families. Each of the incentives below can be claimed by both PAYE taxpayers and the self-employed. Taken together, they can yield significant savings each year for most people. Self-employed individuals can claim these reliefs when completing their annual tax return. PAYE taxpayers can do so by completing a Form 12 tax return or by contacting their local tax office.

Home Carers Allowanc e

This tax credit amounts to €770 in 2003. It is available to married couples where one spouse works at home while caring for a child or an elderly or incapacitated person.

To qualify, the carer's income (excluding Carer's Allowance) must not exceed €5,080. The relief does not increase if more than one person is cared for.

A reduced tax credit is available where the income is between €5,080 and €6,620.

For example, Joe & Mary Murphy are a married couple. Joe earns €50,000 per year. Mary earns €4,000 from part-time work, and also minds their three young children. Joe and Mary can avail of the €770 tax credit.

Medical Expenses

Tax relief is available on medical expenses incurred by an individual or family. Relief is nor available on the first €125 spent on medical expenses by an individual or €250 by a family, in a tax year. Amounts paid over these limits qualifies for the relief.  Relief can be claimed at the 42% tax rate, if appropriate.

For example, the Murphy family have total medical expenses of €1,000 in 2003, of which €950 relates to Joe. If Joe claims tax relief as an individual, he will get relief on €950 - €125 = €825. If he claims the family relief, this would amount to €1,000 - €250 = €750. Therefore he is better off claiming as an individual.

Most categories of medical expenses qualify for the relief.

Rent Payments

Tenants living in private rented accommodation are entitled to claim tax credits in respect of rent paid in each tax year. The max. credit for 2003 is €508 for married couples and  €254 for a single person. Tenants aged over 55 years can qualify for increased credits.

Educational Fees

Tax Relief is available for education fees paid to approved Third Level institutions. To qualify, the fees must be in respect of an approved course. The tax credit is 20% of fees paid, up to a maximum of €3,175 in 2003. A similar incentive exists for approved I.T. or foreign language training course fees, up to €1,270. A full list of approved courses in available from the Revenue Commissioners.

Trade Union Subscription

Trade union members can claim a tax credit of €40 in 2004 on membership subscriptions.

Service Charges

Tax relief is granted in respect of service charges paid to a local authority or private contractor. Group water scheme subscriptions for private houses can qualify for relief under this category.  The relief given is 20% of the charges paid.

Medical Insurance & Mortgage Interest

Tax Relief for medical insurance (VHI & BUPA) subscriptions and mortgage interest is granted at source and is no longer given through the tax system. Medical insurance subscribers now pay a reduced premium (80% of the gross amount) to the insurer and the insurer claims the tax relief back from Revenue. A similar arrangement operates in the case of qualifying mortgage interest.

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Tax Saving Tips
Starting a New Business
Tax Reliefs
Self Assessment Tax
Sub Contractors Tax Guide
Rental Income & Tax
Benefit In Kind
Expenses for Employees
Rural Renewal Scheme
Budget 2003
Budget 2002

Starting a New Business? 

Take a look at our Guide for New Businesses!

Look before you Leap!

Please note that this guide is for information purposes only and no responsibility can be accepted for any errors or omissions. 

We can help! 

If you need further information, advice or guidance on how the Tax system works,  please contact McGibney & Company today!

 

     

Thomas McGibney & Company

Chartered Accountants  & Registered Auditors

Phone / Fax

049 8549966