Starting a new job after a sustained period of unemployment is an exciting time. Finally, you have a new opportunity to gain more skills, meet new people and further your career. However, did you know that if you started a new job in the last four years that you may also be eligible to claim tax back too?
A relatively recent scheme called the Revenue Job Assist scheme is available for individuals who have taken up a job having been unemployed for more than 12 months. We are consistently surprised at how many people who are eligible for this scheme have not had the tax credits applied.
How does the Revenue Job Assist Scheme work?
If you have been out of work for more than 12 months, and take up a qualifying job you may be eligible to get additional tax allowances over three tax years. These additional tax allowances appear as an increase to your tax credits and rate band.
You can claim these extra tax allowances in the tax year in which you start the new job or in the following tax year.
A qualifying job is classified by the following:
• must be a minimum of 30 hours per week
• last at least 12 months or more
• must not be primarily commission based (where 75% of earnings are commission based)
• the previous holder of the job must not have been unfairly dismissed
• must not be in employment where the employer requires no workforce
• there must not have been redundancies in the company in the previous 26 weeks
• Subject to certain conditions you may also be able to keep your medical card and other secondary benefits
Who qualifies for the scheme?
If you have been continuously out of work for more than 12 months prior to when you started a job in the last 4 years, you may be eligible to claim tax back. However, you must have been in receipt of one of the following forms of Social Protection payments during this 12 month period:
• Jobseekers Allowance
• Jobseekers Benefit
• Disability Allowance
• Blind Person’s Pension
• Invalidity Pension (must be in receipt of this for at least a year)
• Illness Benefit (must be in receipt of this for at least 18 months)
• FAS training courses (if you were in receipt of one of the above also)
Claim tax back for the Job Assist Scheme?
A claim for this tax relief must be made within 4 years after the end of the tax year to which the claim relates. Talk to the team at Irish Tax Rebates to discover if you are eligible to claim tax back under the Job Assist scheme.
With over 20 years’ of professional tax experience, we can best advise you on exactly what you are entitled to.