Tax tips for employers and employees
If you are an employee, here are two top tax refund tips that could net you €1,300 a year.
Many of those who get their health insurance cover paid for by their employers don't realise that they have to claim the tax relief themselves, says Dermot Goode, of Totalhealthcover.ie.
"For those who pay the cost of health insurance themselves, they always pay the net cost as the tax relief is always granted at source," he says. "However, when the cost is paid for you, this system goes out the window. Most consumers in this situation don't realise that they now have to claim this tax relief manually at year-end."
Their employers will pay the cost of the cover, but will also charge them benefit-in-kind on the gross cost of the cover. "For those on the top rate of tax, this amounts to around 50pc of the cost when you factor in PRSI and the USC," says Mr Goode.
For a typical family policy subsidised by your employer, the savings could be up to €600 a year. You can go back at least four years if you haven't been claiming this refund, but bear in mind that tax relief has been capped at €200 per adult and €100 per child since October 2013.
There are several flat-rate expenses that you might be entitled to, ranging from €30 up to €700 depending on what you do, says Cathal Maxwell of Paylesstax.ie. It is compensation for expenses you might pay in the course of your work, like buying and laundering uniforms or buying tools.
This relief is aimed at balancing out the advantage that self-employed people have in being able to claim back tax on a whole range of business expenses.
The self-employed can also achieve a tax saving of around €5,000 by employing a spouse in the running of the business or by making them a partner, according to Mr Maxwell.
"Children can be paid a salary for work completed and can earn up to €8,250 tax-free working part-time in the family business, and there's also extra scope for pension funding," he says. However, employing a spouse or children must be "commercially justified".
Sunday Indo Business