Dn moneymatters 4pp v2

Money Matters Putting money back into YOUR pocket!

PuttingPeopleFirst.ie

Putting money back into your pocket Does the Tax man owe you money?

Many taxpayers, especially PAYE taxpayers, fail to claim relief on expenses which they have incurred in the last four years and which are eligible for tax relief.

In the last 4 years have you: • • • • • •

Taken up employment after being unemployed for one year+?

Lived in private rented accommodation?

Had non-routine dental work done?

Paid college tuition fees, including the Student Contribution?

Employed a home-help?

Been unemployed since January 1st last?

If the answer is yes then you could be due a refund.

Visit http://ow.ly/2avntW

Tax Credits A tax credit reduces the tax you pay on your income.

The most common tax credits are: • Single/married credits • Work related expenses • Widowed and one-parent family credits • PAYE credit • Age-related credit • Dependent relative • Incapacitated child credit • Tuition fees (including student contributions) Other schemes which taxpayers fail to claim: Home Carer Tax Credit is available for married couples where one spouse (‘home carer’) works in the home caring for one or more dependent persons, subject to conditions.

Dependent Relative Credit is claimable if you support a widowed parent or incapacitated relative whose income does not exceed €, in 2012 or 2013.

Childminding relief. Where a person minds up to three children in their own home, no tax will be payable on the childminding earnings up to a limit of €,.

Flat rate expenses, available to many PAYE workers, are standard expense deductions that amount to the expenditure incurred in these occupations that isn’t covered by employers. For example a teacher can claim a deduction of €, while bar staff can claim €93.

For a full list of occupations see http://ow.ly/2avmTq

Medical Expenses are one of the most under-utilised tax reliefs available. This applies to medical expenses that have not been reimbursed by a private health insurer. The main health expenses on which relief can be claimed are: • GP costs / Prescription drugs and medicines • Hearing aids / Home nursing • Maternity care • The supply, maintenance and repair of medical equipment used on a advice of a practitioner • Physiotherapy or similar prescribed treatment • Non-routine dental work • Psychological assessment and speech therapy for children You can claim these reliefs on a MED1form available on www.revenue.ie 1. photostock at FreeDigitalPhotos.net, 2. Image courtesy of hin255 at FreeDigitalPhotos.net

MONEY MATTERS: Putting money back into YOUR pocket!

20 % Tuition Fees Tax relief at the standard rate of tax (20%) is available for tuition fees which includes the Student Contribution but does not include examination fees, registration fees and administration fees.

There is a maximum limit per individual per course.

DIRT tax:

41 %

DIRT Tax The tax on savings, DIRT tax, has gone to %. This is double what it was when the financial collapse hit in 2008. But those over the age of 65, or who are permanently incapacitated, may not have to pay it. If you are over the age of 65, but have an income of less than €18,000 a year, then you do not have to pay DIRT. The income limit is €36,000 for a couple. You can have your interest or credit union dividend paid DIRT-free by informing your bank or credit union of your status.

Home Renovation Incentive (HRI) Planning to do some work on your home? You may be eligible to avail of the home renovation incentive. It is essentially a scheme that offers PAYE homeowner occupiers a PAYE tax credit against VAT on home repairs, renovations and improvements that they might undertake.

It is crucial to remember that it has to be a principle residence which is fully LPT (property tax) compliant.

Qualifying work must cost a minimum of €4,405 excluding VAT (or €5,000 VAT inc. at 13.5 %). While there is no upper limit on the cost of work, the maximum tax credit is linked to qualifying expenditure on work costing up to €30,000 excluding VAT. This translates into a tax credit of between €595 and €4,050.

For more information see http://ow.ly/BOmOv

Unemployed?

If you paid tax since January 1st last and are now unemployed, you may be entitled to a tax refund. Also if you paid tax in the year in which you were made redundant, you may be in a position to claim tax back in stages during the year. see www.losingyourjob.ie

Employ Your Spouse Health Insurance While taxpayers receive tax relief on medical insurance through their insurance company many are unaware that a similar relief applies to dental insurance for non-routine dental relief.

Relief is also available for permanent health insurance premiums where the scheme provides a regular income in the event of sickness or disability.

Two-income families can earn far more before they fall into the higher rate of tax and higher levies, where one spouse who runs their own business employs the other. The reality is that both spouses usually contribute to the running of a business so by splitting the income they can maximise the amount of income tax paid at the lower rate.

Further Information: If you are a PAYE customer and require further information from Revenue phone 1890 77 74 25 or log on to www.revenue.ie or visit your local Citizens Information Centre.

3. Image courtesy of FreeDigitalPhotos.net

PuttingPeopleFirst.ie

Other ways to save Get the best telephone deals by visiting the website callcosts.ie which can identify the best and cheapest landline and mobile services based on your usage pattern. Also check your phone bill to see if you are paying a monthly handset rental charge. If you are call up your operator and cancel it.

Shop around for electricity each year and switch between electricity or gas providers. In many cases you can save in excess of €100 by getting the best deal at bonkers.ie or uswitch.ie

Low pay? Family Income Supplement (FIS) is a weekly payment for families, including one parent families, at work on low pay - any person with one child who is 6/week (approx. €100/week earning no more than €506/week more for each additional child).

For more information: http://ow.ly/2avmsg Make insurance savings by checking the cover you have.

Don’t overvalue your car, house or contents. Your home rebuilding costs should reflect the downward trend in recent years in building costs. Can you live with a higher excess, the amount of a claim that isn’t covered, on your home, health or car insurance?

For health insurance log on to healthinsurancesavings.ie or phone 01 470 8096.

For motor insurance check out itsyourmoney.ie Before you renew your home insurance, check your level of cover to make sure that you are not over or under insuring the property. For insurance purposes, it is the cost of rebuilding your home not the market value of the property that needs to be stated on the policy. Check your rebuilding costs at www.scsi.ie

Protect your pension entitlements

Get to know your local Credit Union Get to know your local credit union which provides valuable local financial services and access to loans.

Many unemployed people, in particular self-employed, are unaware of the importance of protecting your PRSI record in order to qualify for social insurance payments such as the State Pension.

If a person has been self-employed they may have been paying a Class S contribution, but if they cease self-employment they will cease paying a mandatory Class S contribution and may not be making any PRSI contributions at all. This could have a longer term impact on their overall PRSI record and any entitlement to a State Pension.

If a person falls into this category they may need to look at the option of making Voluntary PRSI contributions to keep their “record” complete /up to date by downloading form VC1 from www.welfare.ie 4. Image courtesy of patpitchaya at FreeDigitalPhotos.net

Noel Madden, Ballinasloe Credit Union, and Denis Naughten TD.

MONEY MATTERS: Putting money back into YOUR pocket!

Upskill for free Interested in upgrading your skills or doing a course in Chinese, law, computer studies or business skills from the comfort of your own home and at your own pace? And all for free!

That’s the idea of Massive Open Online Courses, which are opening up free educational opportunities to millions of learners worldwide with top universities including Harvard and Stanford.

Whatever you’ve done.

Whatever life’s done to you.

Call Samaritans.

No Pressure.

No judgement.

We’re here for you.

Anytime.

One of the biggest such free online education providers is Irish based ALISON.com

Thinking of starting your own business?

The website www.selfemployedsupports.ie has information on the services and entitlements available if you are self-employed and setting up a business.

Citizens Information phone service If you don’t have access to the web, or can’t find information on an entitlement or support contact them on the national telephone service on 0761 07 4000 from 9am - 8pm.

Grants for home insulation There are two grant programmes available to homeowners:

Food waste The typical household generates up to 300kg of food waste annually, costing about €700 every year.

Switching from a weekly big shop to buying the food you need every 2-3 days will help to avoid food going unused and being thrown out, saving you money in the long run.

For useful tips visit www.stopfoodwaste.ie

The Better Energy Homes scheme provides grants to homeowners who invest in energy efficiency improvements in one or more of the following areas: Roof Insulation, Wall Insulation, Installation of a High Efficiency (> 90%) Gas or Oil fired Boiler, Heating Control Upgrades and Solar panels.

The Warmer Homes Scheme (WHS) aims to improve the energy efficiency and comfort conditions of homes occupied by vulnerable households in receipt of the National Fuel Allowance Scheme through the installation of draught proofing, attic insulation, lagging jackets, low energy light bulbs and cavity wall insulation where appropriate.

For useful tips visit www.stopfoodwaste.ie

Struggling to pay your mortgage?

If you are in difficulty you should firstly contact your mortgage provider. www.keepingyourhome.ie can provide you with advice on what options are open to you.

For more information on either scheme see www.seai.ie / call 1850 376 666 Disclaimer: while every effort has been made to ensure that the content of this leaflet is accurate, anyone seeking a tax refund or advice on tax matters should contact Revenue directly.

It should be noted that there is a four year time limit for claiming tax credits.

This information is brought to you by

Denis Naughten TD

If you would like to discuss any matter with Denis, please contact him at

t: 6 100 2200 / e: dnaughten@oir.ie / w: PuttingPeopleFirst.ie