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Blog Homepage > Your P60 - a ticket to a tax refund

22/04/16

By now you should have received your P60 for last year. It’s very important that you review your P60 as tax is most likely the biggest bill you paid last year - even bigger, on average, than a mortgage! Your P60 shows how much you earned in 2015 and, most importantly, how much tax you paid on those earnings. Effectively, it could be your ticket to a tax refund!

Potential tax refund

If you have had any changes in your personal circumstances, or have not reviewed your tax affairs in a few years, then you may discover you are entitled to some additional tax reliefs/credits/allowances and you could be due a tax refund. For example, if you recently got married, changed employer, changed work pattern, etc.

We find many Public Sector employees don’t claim for all their entitlements, and their unclaimed tax reliefs accumulate year on year. You can claim back tax refunds for a period of up to 4 years. That means many Public Sector employees may be due back a substantial amount of money if they haven’t been filing a return on an annual basis. To put this in context, the average tax refund we processed last year was €1,200 for Public Sector employees*.

 

Flat rate expenses

Depending on your profession, you may also be able claim for “Flat Rate Expenses”. This is a job-related tax relief and is given at your marginal rate of tax. An example of flat rate expenses for nurses/midwives are as follows:

  • Supply and launder your own uniforms – tax relief of €733
  • Supply your own uniforms but are laundered free – tax relief of €638
  • Launder uniforms that are supplied by employer – tax relief of €353
  • Uniforms supplied and laundered by your employer – tax relief of €258
  • Nurses on short term contracts through an agency – additional tax relief of €80.

Claiming this allowance alone could be worth €300 per annum (based on a nurse earning €40,000 & claiming the relief at €733).

Check your payslip

When was the last time you checked your payslip? This is another area you should review regularly. From our experience, upon inspection, Public Sector employees often discover they have been on the incorrect point of the salary scale or their standard rate cut-off point and tax credits are incorrect.

Medical & dental expenses

This is another area where tax refunds can accumulate over the years. You can claim for tax relief at 20% on the following expenses:

  • Doctor, GP, consultant or hospital fees
  • Orthoptic or similar treatment prescribed by a practitioner
  • Drugs or medicines prescribed by a doctor, dentist, or consultant
  • Items or treatments prescribed by a Doctor, e.g. physio
  • Transport by ambulance
  • Non-routine Dental Treatments, e.g. crowns/veneers/root canal.
  • Certain dietary products, e.g. coeliac/diabetic.

You can also claim for tax relief on approved nursing home fees at your Marginal rate of tax.

Tax credits

An example of some of the tax credits which you may be entitled to claim for 2015 are listed below:

  • Single Person/Lone Parent Credit: €1,650
  • Married Person Credit: €3,300
  • PAYE Credit: €1,650
  • Widowed Person Credit (bereaved in 2015): €3,600
  • Incapacitated Child Credit: €3,300
  • Dependant Relative Credit: €70
  • Home Care Credit: €810
  • Age Tax Credit Single: €245, Married: €490.

Other tax reliefs

There is also tax relief available for college fees, single premium pension contributions, mortgages, renting, etc. A full list of the reliefs, credits and allowances available can be found on the Revenue website, www.revenue.ie.

 

We can check if you are due a tax refund! To find out about our tax return service, call us on (01) 408 6266 or click here.

 

*Source: Midas statistics 2014.

 

Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.