Income protection policy
Tax relief is applicable when you effect an income protection policy (policy taken out in case of an accident, illness etc). The tax relief is available at your marginal rate of tax of 20%/40%.
We recommend if you are a contractor/ permanent employee & pay your health insurance yourself, you can benefit from tax relief at a rate of 20% on the cost of the premium – reducing your net cost.
If you are a women who is returning to work from maternity leave may also be able to benefit from unused tax credits. You should ensure your payroll company or employer confirms all your tax credits are being utilised.
If you are a first-time buyer you can claim DIRT on the money you save for a deposit for your home. This also applies to first time buyers who self-build a home to live in.
Tax-saver commuter tickets
Do you use public transport to get to work on a daily basis? Ask your payroll provider or employer to purchase the commuter tickets on your behalf in order to claim tax relief.
Depending on the mode of transport and your rate of pay you can save approximately anything between a third and half of the costs.
Flat rate expenses
Professionals such as teachers, nurses, doctors and tradesmen can claim back an annual expense allowance to cover required items like tools, uniforms etc. that are not covered by your employer.
Civil partnership / Marriage
Are you married or have you entered into a civil partnership in the last few years and didn’t inform Revenue? If one of you is not working and you become jointly assessed it will increase your take home pay by a few thousand (on the average industrial wage).
Once you are married or in a civil partnership, you can share tax credits and have more of your income taxed at the lower rate, which can boost your take-home pay if you fi le as jointly assessed.
PAYE employees can pay into a personal pension scheme and reduce your tax burden as a result. Use Alpha Wealth to advise on the most appropriate scheme which meets your needs.
A great quote from Benjamin Franklin is “In this world nothing can be said to be certain except death and taxes”. If you are sturgling to sort our your personal taxes why don’t you book a free consultation today.