Tax Tips

How to Claim PAYE Tax Credits (With Examples)

PAYE tax credits explained

Many people mistakenly believe that tax credits are automatically applied by Revenue. Unfortunately for them, this is not always the case, which means they might not receive tax back that they are owed for medical procedures or tuition fees etc.

The most common tax credits that Revenue automatically applies are the basic personal tax credit and PAYE tax credits. If you haven’t completed the relevant forms, some tax credits may not be applied, meaning you are probably paying more tax than you should be.

Below, we look at some tax credits you might not have considered, and then run through the process of claiming them. You are entitled to claim for the past four years, however after this time you are not entitled to claim these tax credits; therefore, it is important to keep on top of claiming back your PAYE tax credits.

Some Tax Credits You May be Missing Out On

Single Person Child Carer Credit

The Single Person Child Carer Credit (SPCCC) was introduced in January 2014 and replaced the One-Parent Family Tax Credit. It is a tax credit for people caring for children on their own, and it is given to the person the child lives with, for the whole or greater part of the year (over 6 months).

This tax credit can only be given to one person, unlike the One-Parent Family Tax Credit that it replaced, which could be allocated to both carers. This person is known as the primary claimant, but SPCCC can be transferred to a secondary claimant, if needed.

Home Carers Tax Credit

Home Carers Tax Credit is tax relief for married couples or civil partners (where they are assessed jointly for tax purposes), where one person stays at home caring for a dependent person.  If one spouse or civil partner takes care of a dependent person at home, that person may qualify for a home carer’s tax credit that reduces the amount of tax they as a couple need to pay to the Revenue Commissioners.

Home Renovations

The government is currently offering incentives for those who wish to complete home renovations, such as painting, extensions, new kitchens, alarm installations and even new windows or doors. To qualify, the combined cost of the work has to be between €4,405 and €30,000 (VAT exclusive) and both the home owner and the contractor must register with the Revenue Online System.

Once this is completed, you can claim 13.5% of the cost of the work back in your taxes over a period of two years.  You cannot claim for any work carried out or paid for after 31 December 2018.

Landlords can also take advantage of the Home Renovation Incentive, meaning they can claim tax relief on repairs, renovations or improvement work carried out on their rental property. More information about tax relief for landlords can be found on selfemployed.ie.

Medical Expenses

If any of your medical expenses aren’t covered by the State or private health insurance, you may be able to claim tax relief on some of those expenses. This can include the costs of nursing home care, IVF and fertility treatments, specialised dental treatments and more.

Prescription drugs and medications, as well as any equipment, like wheelchairs, glucometers and hearing aids also qualify for relief.

Third Level Tuition Fees

Tax relief is also available on tuition fees for undergraduate, postgraduate, information technology (IT) and foreign language courses, taken at approved educational establishments. There is a list of courses and colleges that have been approved available on the revenue website.

You should note that you can’t claim tax back on any fees that have been covered by a scholarship or bursary.  Examination, registration and administration fees do not qualify either. Also, the first €3k of full-time student fees don’t qualify for tax relief (the first €1.5k of part-time student fees), and the maximum limit on qualifying fees is €7k.

How to Claim Tax Credits & Tax Relief

To learn which tax credits you can take advantage of, please contact Irish Tax Rebates today. Applicable tax credits vary from individual to individual, and are affected by their personal circumstances, i.e. whether they are married, single, divorced, widowed etc. In the majority of cases, you can claim tax relief for the past four years.

It’s important to make certain that you’re not paying more in tax than you should be, but it can often be difficult to discern which tax credits and reliefs apply to you. If you’re still unsure about how to claim tax credits, or if you would like any help claiming tax credits from the past four years, contact Irish Tax Rebates today.

Our friendly team of tax experts will be more than happy to help. We have the highest average tax rebate in Ireland and the lowest fee; and if you aren’t owed any tax back, there is no fee applied. To get the ball rolling, you can apply for your tax back online today.