AITI Chartered Tax Adviser

Maximise your personal deductions and credits

If you are an employee you get an employment tax credit of €1,650 (s 472) and if you are self-employed you get an earned income credit of €1,350: s 472AB.

You may be entitled to a deduction if you:

  • Work in certain foreign countries for not less than 30 days in the year (€35,000): s 823A.
  • Have been specially assigned from abroad to work in Ireland (30% of income above €75,000): s 825C.
  • Employ a carer to look after an incapacitated relative: s 467.
  • Covenant some of your income to an elderly relative or incapacitated person: s 792.
  • Pay maintenance to your ex-spouse: s 1025.
  • Invest in an EIIS scheme (€500,000 p.a.): s 489.
  • Avail of seed capital relief (€100,000 p.a.): s 493.
  • Incur expenditure on a heritage home or garden: s 482.

You may be entitled to additional credits if you:

  • Are widowed (€1,650 in bereavement year: s 461, or a widowed parent in the first five years of bereavement (max €3,600): s 463.
  • Aged 65 or more (€245): s 464.
  • Pay private or postgraduate college fees: s 473A.
  • Incur medical/dental expenses: s 469.
  • Have an incapacitated child: s 465.
  • Qualify for the help to buy scheme: s 477C.
  • Improve your home through the home renovation incentive: s 477B.

Your employer can give you tax-free benefits:

  • Pension contributions.
  • Bike and cycle gear (up to €1,000), travel to work ticket, mobile phone, home computer, home broadband: s 118.
  • Annual gift card not exceeding €500: s 112B.
  • Travel and subsistence in accordance with Revenue guidelines.
  • A termination payment for loss of your job: s 201.
  • Surrendered R & D credit: s 472D.
  • Share options through the new Key Employee Engagement Programme – you pay CGT when you sell the shares: s 128F.
  • Restricted shares: s 128D.

Avoid the High Earner Restriction by keeping your income below €125,000.

Avoid the domicile levy by keeping your income below €1,000,000.