Top ten tips on personal tax efficiency

1. Rent Relief

If you are living in rented accommodation, you are eligible for tax relief. This is however subject to upper limits which range from €1,800 for a single person under 55 up to €7,200 for a married couple or widowed person aged 55.

2. Home Carers’ Tax Credit

This is available to married couples whereby one of them works in the home caring for one or more dependent persons. It is based on the standard rate of tax (20%). The carer’s income must not exceed €5,080, otherwise it does not apply. Married couples taxed as single people do not qualify.

3. Tax Relief on Service Charges

If you pay local authority and other service charges (e.g. Bins) you are entitled to income tax relief. Within the previous calendar year, relief is available for service charges paid in full and on time.

4. Trade Union Subscriptions

If you are a member of a Trade Union you can claim a tax credit of €60

5. Health/Medical Expenses

If your medical expenses are over €125 (Individual) or €250 (Family) a year, you can claim tax relief on the balance at your highest rate of tax. This is particularly valuable if your marginal rate of income tax is 41 per cent, as you get relief of €41 for each €100 spent on qualifying medical expenses. You can also claim tax relief on your private health insurance. This is not shown on your tax credit certificate as it is automatically given at source.

6. Marriage Claims

In the year you get married, you and your spouse will continue to be treated as two single people for tax purposes. However, a refund can be claimed, if the tax payable as two single people is greater than the amount which would be payable as a married couple.

7. Tuition Fees

In certain cases, tax relief is available with a maximum limit of €5,000 for the academic years 2006/2007 and 2007/2008.

8. Rent-a-Room Relief

Residential Accommodation within a person’s sole or main residence entitles the home owner to a gross annual rental income of up to €7,620 exempt from tax. Their mortgage interest relief is not affected.

9. Mortgage Interest Relief

This relief no longer appears on your notice of tax credits. It is granted at source since 2002, therefore, claiming mortgage interest relief is no longer a necessity. However a TRS1 form must be completed by borrowers who are taking out a new mortgage.

10. Others

Tax relief can also be claimed on donations to charities, foreign earnings or where a person provides a childcare service within their own home, provided they earn less than €15,000 during 2007.