Income Tax Relief

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Childcare Services Relief

What is Childcare Services Relief?

The Childcare Services Relief provides an exemption from income tax to taxpayers who provide childminding services in their own home.

Covid-19 Temporary Measure Introduced

Due to Covid-19, this has now been temporary amended due to the stay at home measures. Childminding should now only take place in the child’s home and therefore an individual minding children in the children’s own home will still qualify for the Childcare Service Relief. The childcare must be provided in accordance with official guidance, specifically, childcare is allowed in the home of the child for the children of essential workers.  This temporary measure will be reviewed once further guidance is available from the HSE.

Nature of Services that qualify

To qualify for the relief, an individual provides any form of childminding services to children under 18 years of age, on a full or part time basis and are provided to 3 children or less.

Exemption Limit

Childminding activity must not exceed €15,000 within the tax year in order for the exemption to apply for Income Tax and USC. However, PRSI is chargeable on this income.

How do I claim?

Tax relief must be claimed through your tax return for the relevant tax year before the tax return deadline.

While you are here, Read more of our Covid-19 updates here

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Home Renovation Incentive

The Home Renovation Incentive Scheme (HRI) was implemented in October 2013 and was originally available for homeowners to apply until 31st December 2015. Subsequently, the scheme was extended in December 2014 to include all homeowners, including landlords and finished in December 2018.

Home improvements carried out in 2019 were also included if planning permission was in place by 31st December 2018.

As the Home Renovation Incentive (HRI) scheme is now finished, we can now take a look at the figures behind this successful scheme.

The HRI scheme was a tax relief available to homeowners, for home improvements and repairs carried out in their property. To qualify, homeowners had to be

  • Taxed under PAYE or self-assessment
  • Local Property tax payments up to date and
  • Work carried out was by HRI qualifying contractors

Between 2013 – 2019, there were over €73,000 homeowners availing of the HRI relief on over 98,000 properties. The total value of these works totaled over €2.5billion with the average improvements valued at nearly €17,000.

You can check your own HRI claims, through MyAccount on the Revenue website.

While you’re here, why not catch up on our recent blogs here

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Special Assignee Relief Programme (SARP)

What is SARP?

SARP provides Income Tax relief to employees that are assigned to work in Ireland from abroad by their relevant employer.

What is a relevant employer?

A relevant employer must be a company that is incorporated and tax resident in a country in which Ireland has a double taxation or a Tax Information Exchange agreement with.

How do you qualify?

You can claim SARP by meeting the following criteria;

  • You arrive in Ireland between 2012 – 2020, at the request of your employer
  • You worked for your employer for 6 months before arriving in Ireland
  • Your employment in Ireland is for a minimum of 12 consecutive months
  • You were not tax resident in Ireland for the preceding 5 tax years
  • You remain a tax resident in Ireland for all years you claim SARP relief
  • You earn a minimum basic salary of €75,000 per annum, excluding bonuses, commissions, etc
Calculating the relief

A proportion of your salary is disregarded for Income Tax, i.e for 2019, the proportion available is 30% of your income over €75,000 up to €1 million.

This would apply if you commenced employment in Ireland on or after 01st January 2019.

Example – Year 1 only
Mary’s Salary €100,000
SARP Threshold €75,000
Balance remaining over threshold €25,000
Balance @ 30% €7,500
Relief @ 40% €3,000

Therefore, Mary is due €3,000 tax refund.
You can also receive certain travel expenses and tuition costs tax free.

How do you apply?

Employers are required to complete a Form SARP 1A for each employee and submit to Revenue within 90 days of the employee arriving in Ireland.

A tax return must be completed by an employee for each year they claim the relief.

Should you be claiming this relief? Contact us today 01 539 7999
Why not read some of our previous blogs here