Tax Tips

Tax Back for People Returning to Work!

 

Assessing Claims for Tax Back

Are you returning to work after a period of unemployment? If so, you may qualify for tax back through the Revenue Job Assist Tax Credit Scheme. The recent Government announcement regarding the addition of 60,000 new jobs to the economy is of course great news for Ireland, especially for those of us that are returning to work after a period of unemployment.

In recent years, the Government have reduced tax credits in several areas. However, one area that has bucked this trend and has in fact seen the introduction of new tax credits is the area of job creation.

The Revenue Job Assist credit is one such tax break that rewards both the employee and the new employer. The scheme’s window applies for a particular time period – from the start of 2010 up to July 2013.

If a worker returned to work after being unemployed for a period of 12 months within this window, they are entitled to apply for the scheme and may be eligible for tax back. The scheme is very beneficial because it also is one of the limited numbers of tax credits that will apply at the higher tax rate of 41%.

There is also an increased benefit for those with dependent children. Here are a couple of examples to illustrate how this may be of benefit to you and an idea of the potential tax back that you could be due:

Taxpayer 1 – Single/No Children: Returned to work in 2012, Salary – €25,000.
Benefit of Revenue Job Assist:
2012 – €762.00
2013 – €508.00
2014 – €254.00

Total Benefit: €1,524.00

The credit is even more beneficial for those that earn more than €32,800 and who have children.

Taxpayer 2 – Co-habiting with 3 Children: Returned work in 2011. Salary – €45,000.
Benefit of Revenue Job Assist:
2011 – €3,124.20
2012 – €2,086.90
2013 – €1,043.45
Total Benefit: € 6,254.55

As you can see from two above scenarios, the credit is a great boost to those returning to work, however it has been largely ignored and the uptake has been poor. There are many eligible people out there who are due tax back as a result of this scheme but who are not aware of it or are choosing not to pursue it.

In recent months, we have been concentrating on applying for this credit on behalf of our clients and have obtained tax back for many applicants. The scheme is also beneficial for the employer as they can double your salary (Unfortunately for the employee, not in real terms) in their tax return with the result of driving down their tax assessable profit.

Should you feel you that may be entitled to tax back for this benefit or want your taxes reviewed, please do not hesitate to contact the office on (059) 86 34794 or Apply Online on our website.