1. Contribute to a pension and receive tax relief at 41% for 2014, 40% for 2015 (age and upper income limits apply)
2. Medical expenses - you can claim for GP visits, prescriptions, food for coeliacs/diabetics, travel expenses to hospital, some dental expenses (need Med2 form from dentist) etc. Each GP bill of €55 is worth €11 in tax! Keep your receipts
3. Claim cost of a carer for a family member up to €50,000 pa. Note the carer must either be an employee or an agency
4. Permanent health insurance/income protection gives tax relief at 40% so reduces the cost of the premium, essential to have this in place particularly for self employed
5. Bike to work scheme - buy a new bike, plus equipment, every 5 years as an employee
6. Retirement relief for over 55s, no requirement to retire and potential to extract value from a business or company tax free
7. Incorporating your business restricts tax to 12.5%
8. Bring indebted personal properties into companies to reduce income tax liabilities
9. Give (or receive) €3,000 tax free to or from anyone, many times over! E.g. both parents can give €3,000 each to child, spouse and grandchildren etc. This is essential inheritance tax planning especially with the reduction in CAT lifetime thresholds.
10. Give €250 voucher (not cash) to employees at Christmas, tax free
11. Rent a room in your home - €12k tax free
12. Look after children (other people’s!) in your home, up to €15,000 tax free per year - some conditions apply.
13. Buy a low emissions car (less than 155 g/km) and claim €24k for capital allowances even if you only pay (say) €2k for it. Note that no capital allowances are available for cars over 190 g/km new or old.
14. Renovate your rented property if you are a high earner - effective tax relief of up to 55% assuming the expense is fully deductible. Note the Home Renovation Incentive now applies to landlords so gives tax credit of 13.5%
15. Transfer some shares into the name of your spouse so that when you sell them you will both get a CGT exemption of €1,270 each
16. Sell loss making assets or investments before ones which will realise a gain so that you can offset the losses, or sell within the same tax year. Be very careful if doing this with property as sales can be held up for any number of reasons (Land Registry etc).
17. Use the TaxSaver commuter scheme to purchase your bus or rail ticket, tax saving of up to 52% and cheaper fares.
18. Employ your spouse and children to utilise their tax thresholds and credits. The employment must be genuine and the salary at market rates.
19. Leave your ARF pension fund in your will to your child (over 21) - restricted to 30% income tax and no inheritance tax implications.
20. There are several Government schemes to get unemployed people back to work which benefit employers - e.g. grant of up to €10k, JobBridge, Work Placement Programme etc, Tús scheme for charities.
21. Covenant income to parents/someone over 65/permanently incapacitated - reduces overall tax rate assuming person in receipt has little income
22. Revenue SURE relief for unemployed/PAYE workers starting a new company - get back tax that you paid in previous years.
Lewis & Co. Accountants
8 Priory Office Park, Stillorgan Road
Blackrock, Co. Dublin, A94 EE95
Tel: +353 1 211 0000
Fax: +353 1 210 9694