Tax Tips

Work in construction? 3 ways you may be entitled to tax back

Do you work in construction? Are you or have you been paid through the PAYE system in the past 4 years? Like many of our customers who works as tradesmen, site managers or labourers in the construction industry, you may be due tax back.

There are numerous tax reliefs in place for construction workers, so read on to discover three ways you could be getting tax back on your income.

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1. Get tax back for tools and uniforms

Purchasing the tools and clothing you need to work on a construction site can add up to quite an expensive sum. However, many tradesmen are eligible to claim tax back on such flat rate expenses.

This form of tax relief operates slightly differently than a tax credit, by reducing the amount of income on which you have to pay tax instead of directly reducing your tax liability. Different professions are allocated different allowances for flat rate expenses:

• Bricklayer: €175 per annum

• Fitter mechanic, plasterer: €103 per annum

• Electrician: €153 per annum

• Mason, roofer slater, tiler, floor layer, stone cutter: €120 per annum

• Driver, scaffolder, sheeter, steel erector: €52 per annum

• Professionals: engineers, surveyors, etc.: €33 per annum

• General operatives (labourers etc. incl. Public Sector): €97 per annum

• Cabinet makers, carpenters, joiners: €220 per annum

• Painters, polishers, upholsterers: €140 per annum

• Plumbers (non-welders): €177 per annum

• Plumber-welders: €205 per annum

• Pipe fitter-welders: €205 per annum

If you haven’t been claiming tax relief on any tools, equipment, work wear or uniforms purchased to conduct your role over the last 4 years, you could be due a rebate of several hundred euro in tax back.

2. Make sure you’re claiming every possible tax credit

Every PAYE worker in Ireland is entitled to claim the PAYE tax credit, which is €1,650 in 2016. However, the Revenue office is not responsible for making sure your tax credits are correctly claimed and assigned.

As a result, every construction worker should double check to make sure they’re receiving the credits they’re entitled to, and if necessary, claim their PAYE tax back.

If you’ve changed employers over the last 4 years or have recently returned to work following the resurgence in construction, there’s a likelihood that you may not be claiming all the tax credits that you are entitled to.

3. Claim tax back after short term construction contracts

In the construction industry, workers can so often move from job to job and short term contract to short term contract, often with gaps in between projects. When you start a new job, and register it with Revenue, they automatically assign your tax credits equally across the 52 weeks of the year.

While this is ideal if you’re working for the same company all year round, it can result in a sizable tax back rebate if you were employed in a short term contract.

Similarly, you may be due a tax rebate for USC. If you earned under €12,012 in 2016, you are not liable for USC. However, if your weekly income is above a certain amount, Revenue can automatically believe you earn this level of income all year round, and deduct USC accordingly.

We’ve claimed thousands of euro in overpaid USC for construction workers in Ireland.

Want to claim your tax back?

For more advice on claiming tax back for construction workers, get in touch with Irish Tax Rebates today! Claim tax back online using our simple online authorisation form and don’t forget – you can claim tax back for the last four years!