Millions of euro left unclaimed in tax reliefs

Millions of euro are going unclaimed by taxpayers for reliefs they failed to claim through neglect, apathy or ignorance.

However, substantial refunds of overpayments made in the past four years can still be claimed, according to www.taxback.com.

While tax breaks in 2013 are not as generous as in previous years, you can reclaim tax as far back as 2009, said the company which last year oversaw an average payout of €840 for clients.

“A lot of people still find filing a tax return confusing or complicated, resulting in them paying more tax than is necessary and losing out on entitlements,” said Darren Byrne, tax consultant with www.taxback.com.

“Revenue has made attempts to educate taxpayers as to their entitlements regarding tax credits and reliefs. However, despite this we believe that there are still millions of euro going unclaimed each year.

“There is still a long list of tax reliefs available to people that could result in savings of hundreds of euro but many of these go unclaimed every year either due to a lack of awareness or unfortunately the apathetic nature of some people.

“From Jan 1, people can start claiming tax refunds for 2012 and we are urging people to get their affairs in order sooner rather than later — start the year on the right foot financially.”

Even reliefs that are being cut or phased out can still be claimed for previous years. These include medical and dental expenses, tuition fees, rent payments, home carer credits, and even rubbish collection charges.

“Obviously, not everyone is entitled to the same tax credits and reliefs so it is up to the individual themselves to ensure they know their entitlements,” he said.

While the rate at which tax relief can be claimed on medical expenses has been slashed from 41% back in 2008 to 20%, the relief is still available and can be claimed on most medical expenses incurred and on qualifying non-routine dental expenses.

The tax credit for tuition fees is still available. For the years 2009 to 2010, the max tax credit available was €1,000. A change was introduced in the 2011 tax year where the relief does not apply to the first €2,000 of qualifying fee or if less, the full amount.

While the rent credit has been reduced to €200 for a single person and is set to be phased out by the end of 2017, taxpayers can still claim the rent credit back to 2009, provided that they were in rented accommodation on Dec 8, 2010.

Tax relief on bin charges was abolished for the year 2011 and subsequent years. However, taxpayers may still claim relief for prior tax years as far back as 2009.

“It’s so important that taxpayers are aware of all the tax credits and reliefs that they are entitled to and submit a claim to the Revenue Commissioners each year in order to maximise the potential refunds that they are entitled to,” Mr Byrne said.

Tax claims

Tax reliefs and incentives which remain untouched:

* Rent a room relief;

* Exemption on income earned from caring for children in your own home;

* Employment and Investment Incentive (EII) scheme;

* Film investment relief;

* Capital losses.

Tax reliefs still available but reduced:

* Medical expenses;

* Tuition fees;

* Rent credit (to be phased out by 2017).

Tax reliefs abolished but still claimable from 2009-2011:

* Bin charges;

* Trade union membership.