Every year, we are bombarded with information on items that we should / can or have yet to claim or declare. It can be a bit of a confusing time but we find that the main points below will highlight the tax reliefs and claims that can be most commonly made before the deadline (31st October if filing manually or November 14th if filing online).

Double Your Wins

Ok, it’s not exactly doubling your wins, but making an Additional Voluntary Contribution (AVC) at this time of year has a dual benefit. You can claim tax relief and you’re building a nest egg for the future (which will benefit from compound interest until you’re ready to draw down the pension).

Income tax relief is currently available at your marginal rate as follows:

AVC Contributed

Rate of Income Tax Reduction in Take Home Pay 

€1000.00

20%

€800.00

€1000.00 40%

€600.00

There are limits on the amount of AVCs (together with any normal pension contributions) you can pay as follows:

Under age 30

15% of Remuneration

Age 30 to 39

20% of Remuneration

Age 40 to 49 

25% of Remuneration

Age 50 to 54

30% of Remuneration

Age 55 to 59

35% of Remuneration

Age 60 and over

40% of Remuneration

 

Gareth covered AVCs in a recent video which you can watch here or below.

Claiming Mortgage Relief

The Irish government introduced Mortgage Interest Tax Relief as a temporary measure to support homeowners facing rising interest rates in 2022. This relief will continue into next year, as per the 2024 Budget announcement. This tax relief applies specifically to the increase in mortgage interest paid between 2022 and 2023. This means you won’t benefit from relief on the full interest rate hike, but it can still offer a welcome rebate for many homeowners.

Are you Entitled to Claim?

An individual will be entitled to claim the MITC for the 2023 tax year where they:

  • Paid interest on a qualifying loan in the years 2022 and 2023.
  • The interest on the qualifying loan increased from 2022 to 2023.
  • The outstanding mortgage balance on 31 December 2022 was between €80,000 and €500,000.
  • The property (situated in the State) was his or her principal private residence.
  • Local Property Tax obligations in respect of that property are satisfied.

The amount qualifying for relief at the standard rate of tax, 20%, is capped at €6,250 per property. This is equivalent to a maximum tax credit of €1,250.

Time to Switch?

Switching your mortgage to a lender offering a lower interest rate could significantly reduce your monthly repayments. Remortgaging to a new deal with a better interest rate or a longer term can also help lower your monthly payments. It’s important to be aware of any early repayment charges when switching your mortgage, as these can sometimes offset the potential savings.

Rent Relief

According to a recent report in the Irish Examiner, approximately 70,580 taxpayers have claimed the renters’ tax credit this year, even though about 400,000 are eligible. Introduced in 2022, this tax credit has been both praised and criticised.

For those that are struggling to make ends meet, the tax credit does make a difference but on a national and longer term level, this will not solve the housing crisis and rising prices. If only 20% of those it applies to have claimed, perhaps it’s worthwhile asking if it really is making the impact we expected. The tax credit was increased in Budget 2025 from €750 to €1,000 and backdated to include this year. You can claim now for 2023 and 2024, if you have not already done so.

Paying Rent for Your Child?

If you are paying rent for a child attending ‘an approved course’ who is Under 23, you can also claim the credit. This link offers an easy to follow outline of the process or get in touch with Gareth who will be more than happy to go through the process with you.

Working From Home Tax Rebate

If your employer hasn’t provided a daily allowance of €3.20 for working from home or reimbursed you for home office expenses, you can claim a tax rebate yourself.

You can deduct 30% of your electricity, heating, and broadband costs as a remote working expense. The amount you can claim depends on the number of days you worked from home throughout the year. For instance, if you worked from home three days a week, you can claim 30% of your utility bills for those days.

Health Tax Relief Claims

There are two ways to potentially reduce your tax bill related to health. Firstly, contributions you make to a Revenue-approved Permanent Health Benefit Scheme may qualify for tax relief. This means the government reduces your taxable income by the amount you contribute, potentially lowering your overall tax burden.

Secondly, you might be eligible for tax relief on out-of-pocket medical expenses you’ve paid for yourself or a dependent. This relief applies to costs not covered by insurance or other sources. Be sure to keep receipts for these expenses as they’ll be needed when claiming the relief.

Tax Relief on Income Protection

If you’re paying for an Income Protection policy, you can claim tax relief on the premiums. To do this, you’ll need to register your policy annually with the Revenue Commissioners.

It’s straightforward (and we’ve outlined the steps here):

  • Log into MyAccount: Access your Revenue Online Services (ROS) account on Revenue.ie.
  • Go to PAYE Services: Under the PAYE Services section, find “Manage Your Tax.”
  • Claim Tax Credits: Click on “Claim Tax Credits.”
  • Select Health and Income Continuance: In the Health section, you’ll find “Income Continuance.” This is where you can register your Income Protection policy.

Remember: Income Protection is also known as Permanent Health Insurance. If you register your policy annually, you can ensure you receive the appropriate tax relief.

Donations to Approved Charities

Donations from Companies

When a company makes a charitable donation to an approved body, the company can claim tax relief because the donation is classed as a “trading expense”. Calculating the relief on donations from companies is straightforward. For example:

Company X donates €1,000 to an approved body in 2020. The Corporation Tax rate is 12.5%, so the relief that the company can claim is €125 (€1,000 x 12.5%).

The approved body has the benefit of receiving €1,000, but the cost to the company of making the donation is only €875 (€1,000 – €125).

The company simply claims a tax deduction on the donation as if it were a trading expense. Revenue publishes details of all bodies authorised to operate the Charitable Donation Scheme.

Here to help you save for today, tomorrow and for the unexpected.

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We’ll work with you to assess your needs, risk tolerance, and investment goals, and develop a tailored plan to secure your financial future. Let us help you navigate the complexities of financial planning and make informed decisions about your retirement income.

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