Tax Planning
Four Ways we Can Help you Reduce the Tax You Pay
As trusted financial advisors, we are committed to helping you maximise your wealth and minimise your tax liability. Here are four essential strategies we can help you with to optimise your tax planning to ensure you’re paying the least amount of tax possible
Book an Appointment1. Pension Contributions
Focus on your pension contributions to get significant tax benefits. By contributing extra to your pension, you can enjoy substantial tax relief. For instance, if you earn over €42,000 per year and contribute an additional €600 to your pension, this amount is uplifted by the taxman to €1000. This represents a 66% boost at the outset, and your pension grows tax-free while the money remains in the pension.
Benefits:
- Immediate uplift of contributions by tax relief
- Tax-free growth within the pension fund
- Enhanced long-term savings for retirement
- Compound Growth
2. Employment Investment Incentive Scheme (EIIS)
Explore the Government’s Employment Investment Incentive Scheme (EIIS) for significant tax-back advantages. By investing €5,000 or more in one of approximately seventy Irish companies, ranging from established firms to new start-ups, you can get up to 50% tax back over four to five years.
Benefits:
- Up to 50% tax relief on investments
- Support for Irish businesses and startups
- Potential for high returns on investments
3. Gift Allowance for Your Children
Utilise the Gift Allowance Scheme to reduce your overall tax bill effectively. You can gift your children up to €3,000 per year per parent without any tax implications. Larger amounts might be taxed, so passing money over a long period is an efficient tax tool.
Benefits:
- Tax-free gifting up to €3,000 per year per parent
- Efficient wealth transfer to children
- Easy and effective long-term tax planning
4. Claim Expenses
Get familiar with the Revenue Online System (ROS) to claim a variety of expenses from medical expenses to rent relief and working from home costs. ROS allows you to go back up to four years, potentially reclaiming several hundred or thousand euros with just a few clicks.
Benefits:
- Claim a wide range of expenses
- Simple and hassle-free process
- Potential to reclaim significant amounts