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TAX RELATED MATTERS

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 herself.

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 himself/herself independently.

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, Loais,
Meath, Tipperary, Waterford, Wexford, Wicklow 1890 444 425

4. South West Region, Clare, Cork, Kerry, Limerick 1890 222 425

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

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