Renters missing out on up to €1,000 tax relief
The latest report from Daft.ie shows rents have increased by 14.1pc over the last year - the highest annual increase recorded since Daft began reporting in 2006.
Despite such soaring rents, which have presented significant financial challenges to renters throughout the country, up to seven in ten people are not aware of the Rent Tax Credit that was introduced late last year.
The latest , released by Irish tax specialists Taxback.com, revealed a widespread lack of awareness amongst the public around the tax break, with a sizeable 67% admitting they were unaware of it.
The credit is worth up to €500 to every paying tenant. And with this in mind, Taxback.com is urging people paying rent to check if they're eligible for the credit — even if they believe they're not.
Check here if you are entitled to the Rent Tax Credit
“There are 600,000 people renting residential properties in Ireland at present, many of whom are under severe financial strain,” explained Marian Ryan, Consumer Tax Manager with Taxback.com.
“The rent credit will come as a welcome support to those who claim it — but our guess is that many will miss out because they simply don’t know about it.”
The credit, introduced in last October’s Budget, is available to tenants, or parents paying rent on behalf of a student child, and is worth up to €500 a year for single persons, and up to €1,000 a year for married couples and civil partners.
Ms. Ryan stresses that this credit can be claimed for 2022 as well as 2023, 2024 and 2025. “Once you're eligible, it is possible to claim the Rent Tax Credit for 2022, and given the steep rental costs so many are facing, taxpayers should make it their priority to do so”.
Each tax-paying tenant in a property is eligible to claim the credit. Tenants sharing a property who are not married or in a civil partnership must claim the credit individually.
The rent credit is not available to renters on State housing supports.
Only one rent credit may be claimed per person per year. However, the value of the credit will be doubled in the case of jointly-assessed married couples and civil partners.
Singles must spend at least €2,500 a year on rent to qualify for the full rent credit, or at least €5,000 a year for married couples or civil partners jointly assessed for tax purposes.
Where a student-going child is renting a property owned by their parents, it appears that the rent credit cannot be claimed by either the child or the parents.
Taxback.com have developed a simple online solution to help workers in Ireland to claim their tax entitlements.
When you sign up here, Taxback.com will check if you are due the Rent Tax Credit – as well as any other tax reliefs.
Their service is ‘no refund, no fee’, so it’s worth checking what you’re owed.
If you work from home, as many of us are nowadays, it’s likely that you’re entitled to tax back on your utility bills.
This relief — also known as e-worker tax relief — is available on heating, electricity and broadband bills.
E-working is defined as working for substantial amounts of time outside the normal place of work — so working from home, either full or part-time, may be eligible for WFH tax relief.
First, calculate the percentage of the business year that was spent working from home. Next, divide total utility bills — heating, electricity and broadband — by this percentage.
Tax relief can then be claimed at the marginal rate (20% or 40%) on 30% of the remaining figure.
A claim can only be made for the days that were actually worked from home — days in which work was brought home outside of typical working hours will not count.
Taxback.com estimate that this tax relief will be worth approximately €200 to the average employee who is working from home full-time. So it’s definitely worth checking how much you can claim.
There are a plethora of reliefs available to taxpayers.
In fact, the average Taxback.com PAYE tax refund is €1,880.
Exactly how much you will be due will depend largely on your personal circumstances. However, Taxback.com have highlighted the five most common tax reliefs which are claimed by workers.
These include:
Tax relief can be claimed at 20% on a range of medical expenses — including GP and consultant bills, physio, maternity care, braces and more.
If you pay nursing home fees on behalf of yourself or a loved one, tax relief can be claimed at up to 40%.
Flat Rate Expenses are available to thousands of Irish employees who work in a variety of different jobs. How much you will be able to claim will depend on your personal circumstances. For example, electricians can claim €153, dentists are due €376, while nurses can claim €733.
Tax breaks are available to married couples in the year after they get married. So if you tied the knot in 2022, it’s a good idea to check if you can make any savings on your tax bill.
If you pay third level tuition fees on behalf of yourself or a loved one, you may be entitled to claim tax relief on the bill.
When you apply with Taxback.com, you can claim every tax relief you’re entitled to.
Their team will handle all of the paperwork for you and transfer your maximum Irish refund straight to your bank account.
- Simple online process — no complicated forms
- Your maximum refund guaranteed — average amount refunded: €1,880
- Claim every tax relief you’re owed (including the Rent Tax Credit, Medical expenses, working from home tax relief and more)
To apply for your tax refund with Taxback.com, simply complete the short form here.
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