Making Cents: Are you claiming back tax that is rightfully yours?

For a lot us, particularly PAYE workers, budget day is one of the few times a year we actually think about the information on our pay slips.

It is all too easy to just look at the net pay figure and ignore the rest but the changes to the tax bands and USC rates announced last week will have an effect on that final figure.

It is worth taking the time to check if the other information revenue has is up to date. There could be other factors that could increase your net pay amount.

One of the other changes announced by Minister Paschal Donohue was an increase to the Home Carer Tax Credit for 2018, from €1,100 to €1200.

You may not have taken much notice of that one. Judging by tax figures in recent years not many do, even if it applies to them.

This credit can be claimed by a couple in a marriage or civil partnership where person is the home carer and cares for one/more dependent persons, which includes children under 18.

According to the 2014 tax returns, 80,900 taxpayers claimed the credit. But there are estimated to be 230,000 households with children where one parent stays at home, which is a lot of unclaimed credit.

If you realise you should have been claiming this credit, you should advise revenue immediately. In addition to paying it in future you are also allowed to claim back for the previous four tax years, so act before the end of this year to claim as far back as 2013.

Another concession people may not be aware of is reduced USC for those with medical cards.

If you hold a full medical card at any time during the year, and your total income is €60,000 or less, you only have to pay USC at the standard rate, rather than rising to the higher rate once you earn more than €18,772.01 (€19,372 in 2018).

While tax is fresh in people’s mind, Taxback.com are also urging underwhelmed taxpayers to use this time as an opportunity to review all existing tax reliefs and rebates that are available.

Barry Flanagan said: “Household finances, disposable income, purse-strings, savings and tax are all on people’s mind at budget time - everyone is hoping and wishing for more in their back pockets.

“Budget 2018 was at best measured, and it didn’t deliver much, if anything, in terms of windfalls for the general public.

“But while people still have money on their minds we want to draw people’s attention to the fact that there are still a myriad of reliefs available and now is the time to get them.”

Taxback.com will help you review your finances and suggest that they help their average customer claim close to €1,000 but there is a cost. For Irish PAYE tax refunds Taxback.com charge 10% plus a handling fee of the refund, subject to a minimum processing fee of €40 plus handling fee.

They are helpful if you cannot face tackling it yourself but Revenue have taken great strides in recent years in making their claim system easy to use. And with a December 31 deadline, now is a good time to start the process.

For straightforward claims Revenue will process the refund directly to your account within weeks so a little bit of effort now could get you a lump sum to help with the costs of Christmas.

The first step is to register online at www.revenue.ie/en/online/myaccount. You may be able to get up and running immediately or they may have to post you out a pin.

Either way you should have access the service within a week.

The next step is to check the list of reliefs and see which apply to you. In addition to the Home carer tax credit, taxpayers may be eligible for rent a room relief, widowed person/civil partner tax credit, dependent relative or widowed parent tax credit, or incapacitated child tax credit.

Medical expenses can also be offset against tax and certain categories of employee are entitled to flat rate expenses. You can get a full list and more details at revenue.ie.

Mr. Flanagan added: “Given that it usually takes people under an hour of their time to cobble together the necessary receipts and fill out the relevant documentation – it’s probably the easiest money you’ll ever make.”