Flanagan have collected herein a number of Tax related
Credits/Allowances which you may not be aware of or simply
have not taken the time to claim. The information given herein
is intended only to describe the Allowances/Credits and give
you a general idea as to their purpose. You can contact us
directly through our e-mail or by telephone in order to obtain
further information regarding these.
One Parent Family Tax Credit
A One Parent Family Tax Credit is a Credit, which
can be claimed if you are a single parent (whether widowed,
single, deserted, separated or divorced) and you have a child
who is dependent on you. A One Parent Family Tax Credit, where
due, is given in addition to your normal personal Tax Credit.
If you wish to find out who can claim this Tax Credit?, or
their entitlement to the Tax Credit is subject to a Means
Test? Or how to claim for this Tax Credit? You can download
Form IT9 from the Revenue's Website at www.revenue.ie or get
further information at the same Website by downloading their
leaflet IT1 or simply phone lo call 1890 30 67 06.
Lump Sum Payments on Redundancy/Retirement
Generally speaking, all payments made by employers
to employees and directors are regarded as pay for Tax purposes.
Employers must operate PAYE on such payments unless they are
exempt from Tax or the Revenue Commissioners give other instruction.
Lump sum payments on a Redundancy or a Retirement, however,
qualify for special Tax treatment. They may be exempt from
Tax or may qualify for some relief from Tax. A lump sum paid
under the terms of a Contract of Employment is taxable in
full and does not qualify for exemption or relief. Your Redundancy
or Retirement lump sum is exempt from Tax if:
1. It is statutory redundancy payment (this is an individual
statutory entitlement under employment legislation.
2. It is a payment made on account of injury or disability.
3. The employment consisted of foreign service and certain
conditions are met.
This in not an exhaustive list. For further information you
should contact your Revenue Office directly or discuss the
matter with your Solicitor.
Employed Person taking care of a Incapacitated Individual
This Allowance may be claimed if you, your spouse
or a relative are permanently incapacitated for a Tax Year
and you employ a person to care for the incapacitated person.
A relative includes a relation by marriage and a person in
respect of whom the claimant is or was the legal guardian.
There are conditions attaching to this relief as with all
reliefs. To find out how to make this claim you should contact
you Regional Tax Office.
Dependent Relative Tax Credit
You can claim the Dependent Relative Tax Credit if
you maintain at your own expense a:
1. A relative, including a relative of your spouse who is
unable, due to old age or infirmity, to maintain himself or
2. Widowed father or mother of yourself of your spouse,regardless
of the state of his/her health.
3. Son or Daughter who resides with you and on who's services
you are compelled to depend due to old age or infirmity. If
the dependent relative incurs health expenses you may be entitled
to further relief. Fur further information contact your Regional
Tax Office or download leaflet IT6 (Medical Expenses Relief)
from the Revenue Website at www.revenue.ie.
Home Carers Tax Credit
Home Carers Tax Credit may be claimed by a married
couple where one spouse (the home carer) cares for one or
more dependent person. If the home carer has some income in
his/her own right the Tax Credit may still be claimed. Only
one Tax Credit is due irrespective of the numbers of persons
being cared for.
Incapacitated Child Tax Credit
The Tax System provides additional Tax Credits and
exemption of certain incomes in respect of persons with disabilities
of a permanent nature. Incapacity of the child must be such
that it permanently prevents the child from being able in
the long term (when over eighteen years of age) to maintain
Health/Medical Expenses Relief
You may claim Tax Relief on certain reimbursed Medical
Expenses incurred by you for yourself and/or your qualifying
dependent. You cannot claim relief for any expenditure which
has been or will be reimbursed (for example by BUPA or VHI).
You must also bare the first €125.00 of any Medical Expenses
incurred in any Tax year yourself.
People with Disabilities on Income Tax
People with Disabilities are in general liable to
pay Tax on their incomes in the same way as everyone else.
The Tax system does however provide special Tax Credits and
exempts certain incomes from Tax for persons with Disabilities
of a permanent nature. Anyone who is permanently incapacitated
either physically or mentally, where he or she is unable to
maintain himself or herself may be able to claim one or more
of the special Tax Credits available.
Covenants to Individuals
A Deed of Covenant is a legally binding written agreement
made by an individual to pay an agreed amount to another individual,
without receiving any benefit in return. To be legally effective,
it must be properly drawn up, signed, witnessed, sealed and
delivered to the individual receiving the payment. Any amount
can be paid under a Deed but only covenants in favour of certain
individuals qualify for Tax Relief. The person who makes the
payment is called a coventer. The person who receives the
payment is called a conventee or beneficiary.
Arranging a Covenant can seem quite difficult. We advise that
you speak to your Solicitor in the first instance.
For further information on any of the above please contact
our office directly or alternatively look at the Revenue Website
on the address given above. You may also contact your Regional
Revenue Office on the Lo Call numbers as follows:
1. Border Midlands West Region covering Cavan, Monaghan,
Donegal, Mayo, Galway,Leitrim, Louth, Offaly, Roscommon,
Sligo, Westmeath 1890 777 425
2. Dublin Region (Dublin City and County) 1890 333 425
3. East and South East Region, Carlow, Kildare, Kilkeeny,
Meath, Tipperary, Waterford, Wexford, Wicklow 1890 444 425
4. South West Region, Clare, Cork, Kerry, Limerick 1890 222
While every effort has been made to ensure that the information
detailed above is accurate this is not a legal document. Flanagan Solicitors cannot accept responsibility for any liability
incurred or loss suffered as a consequence of relying on any
matter published herein. We would ask that you contact our
office directly or make further enquires with the Revenue
Commissioners prior to relying on the above information.
Updated 12th January 2005