Ireland has a tax code which is notoriously complex. But with the introduction of seven new relief schemes, it’s now easier to understand what you’re paying and how you can lower your tax bill. There are reliefs for workers in the home, those with disabilities, and children, as well as relief for people who are carers.
Tax Relief For Employees
If you are an employee in Ireland, you may be eligible for certain income protection tax relief. These reliefs can reduce the amount of income tax you pay.
There are a number of different tax reliefs available for employees in Ireland. Some of these reliefs are based on your income, while others are based on specific expenses you incur as part of your job.
Income Tax Relief
There are a number of different income tax reliefs available for employees in Ireland. These reliefs can reduce the amount of income tax you pay.
The main types of income tax relief available for employees are:
– The Standard Rate Cut-Off Point: This is the point at which you start paying income tax at the higher rate of 40%. For 2019, the standard rate cut-off point is €35,300. This means that if your taxable income is below this amount, you will only pay income tax at the standard rate of 20%. – The Home Carer Tax Credit: This is a credit worth up to €1,500 per year for people who care for someone at home who needs assistance with daily living activities. To be eligible for this credit, you must be aged 18 or over and have an annual income of €50,000 or less. – The PAYE Modernisation Tax Credit: This is a credit worth up to €1,500 per year for people who have been affected by the introduction of PAYE modernisation. To be eligible for
Tax Relief For Married Couples
The Irish government provides a number of tax relief schemes for working people. One of these is the married couples tax relief, which allows married couples to claim a certain amount of money back from the government each year.
To qualify for this relief, you must be married and living together in Ireland. You must also both be working and paying taxes in Ireland. The amount of money you can claim back depends on your combined income and how much tax you have paid between you.
If you are eligible for this relief, it can help reduce the amount of tax you have to pay each year. It can also help to boost your overall income and improve your financial situation.
Tax Relief For Self Employed
The Irish tax system is progressive, which means that those who earn more pay a higher percentage of their income in taxes. This can be a burden for low- and middle-income earners, especially if they are self-employed.
However, there are a number of reliefs and allowances available that can reduce the amount of tax you owe. One such relief is the Earned Income Tax Credit, which is available to certain self-employed individuals.
Other reliefs include the Home Carer Tax Credit, the Dependent Relative Tax Credit, and the Single Person Child Carer Tax Credit. You may also be eligible for certain deductions, such as the Self-Employed Persons’ contributions deduction.
To claim any of these reliefs or deductions, you will need to file a tax return. If you are unsure about any aspect of your taxes, it is always best to speak to a qualified tax advisor before filing your return.
Tax Relief For Recruitment Expenses
If you’re an employer in Ireland, you may be eligible for tax relief on certain recruitment expenses. This relief is designed to encourage businesses to take on new staff and grow their businesses.
To qualify for the relief, the following conditions must be met:
– The employment must be new and not a replacement for an existing employee.
– The position must be filled by someone who is unemployed or underemployed.
– The employment must be for at least 30 hours per week.
– The employee must be paid at least the minimum wage.
Tax Relief For Rentals
The Government has introduced a number of tax reliefs for people who rent their homes. The main relief is the Rent a Room Scheme, which allows you to earn up to €14,000 per year from letting out a room in your home.
There are also a number of other reliefs available, including:
• The Residential Landlord Relief Scheme, which provides relief on income from renting out a property that you live in;
• The Mortgage Interest Relief Scheme, which provides relief on mortgage interest payments; and
• The Repair and Lease Scheme, which provides tax relief for landlords who carry out repair work on their properties.
Tax Relief For Charitable Donations
The government of Ireland offers various tax relief schemes for those who make charitable donations. One such scheme is the Charitable Donations Tax Relief, which allows taxpayers to deduct certain amounts from their taxable income if they make donations to qualifying charities. The amount that can be deducted depends on the amount donated, but it is capped at €1,000 per year. To qualify for this relief, taxpayers must make their donations through an approved charity or body, and they must keep records of their donations.
Conclusion
There are a number of income protection tax relief schemes available for working people in Ireland. If you are struggling to make ends meet, or if you are simply looking for ways to reduce your tax bill, these schemes could be worth investigating. Remember, however, that each scheme has different eligibility requirements, so it is important to do your research before applying for any relief.
