FAQ
What do I pay tax on?
You pay tax on earnings of all kinds arising from your employment including bonuses, overtime, non-cash pay, also known as benefit-in-kind e.g. use of company car, tips, Christmas boxes etc.
You do not pay tax on:
- Scholarship Income
- Interest from Savings Certificates
- Interest from Savings Bonds
- Interest from National Installment Savings Schemes with An Post
- Payments to approved Pension Schemes
What are Tax Credits?
Under the tax credit system every individual is entitled to tax credits depending on personal circumstances. Every individual can claim a personal tax credit. PAYE taxpayers can also claim a PAYE tax credit.
Are there any tax savings for the average PAYE worker?
Yes, such as certain un-reimbursed medical expenses, service charges paid for bin collection, trade union subscriptions etc
How does Health/Medical Expenses Relief work?
You may claim tax relief at the standard rate of tax of 20% (prior to 2009 you can claim at the higher rate of tax) for certain medical expenses incurred by you, your spouse, your dependent child or a dependent relative. Most medical expenses, with the exception of routine dental and ophthalmic care, qualify for relief.
You cannot claim relief for any expenditure which has been or will be reimbursed, for example by BUPA, the VHI, a Health Authority or where a compensation payment is made or will be made.
Is mortgage interest deductable from residential rental Income for income tax purposes?
Yes, for interest accruing on or after 1 January 2002 (or before 23 April 1998) on money borrowed to purchase, improve or repair the property.
However, from 2006 onwards for an individual, an interest deduction will not be allowed unless it can be shown that the registration requirements of Part 7 of the Residential Tenancies Act 2004 have been complied with in respect of all tenancies that existed in relation to that premises in that tax year.
Do I have to pay tax on profits from the sale of company shares that I held.
Yes possibly, CGT (Capital Gains Tax) is could be payable if the profit (as calculated for CGT purposes) exceeds your annual exemption (€1,270 for 2007).
My taxes are not up-to-date. What do I do?
Get in contact with our office to discuss your current situation. We will advise you how to get your taxes in order and to keep yourself compliant with your tax obligations.
Will I get caught if I don't pay my tax and file returns when I am meant to?
Yes! Also , you will more than likely be charged interest and penalties. You should file tax returns and pay taxes when they are due.
Do I get a tax deduction for bringing my clients out for dinner or drinks?
No. since 26 March 1982 no deduction is allowed for business entertainment such as : the provision of accommodation, food and drink and any other form of hospitality in any circumstances!
I rent my apartment. Do I get tax relief for rent paid each year?
Tax relief at the standard rate of income tax (currently 20%) up to a max of €2,000 for single person and €4,000 for a married couple may be claimed by tenants in respect of rented residential accommodation which is your sole or main residence.
I am living outside of Ireland and receiving rent from a house that I own in Dublin. Are my tenants obliged to deduct tax from my rents?
If you are receiving the rent directly, and your usual place of abode is outside of Ireland, tax at the standard rate of income tax (currently 20%) must be deducted from your rent by your tenants and paid over to the Irish Revenue by them. However, rents paid to agents in Ireland are not paid under deduction of income tax. You should seek professional advice if you are a non-resident landlord.
What should I do if I change jobs?
Whenever you leave a job you should get a form P45 from your employer. You will need this to give to your new employer. Your new employer will operate PAYE in accordance with the details of your tax credits and standard rate-cut off point on the form P45 until he or she receives a Certificate of Tax Credits and Standard Rate Cut-Off Point from the tax office. If you do not give your new employer a form P45, emergency tax will be deducted.
