# Question about Tax credit for Professional Indemnity Insurance?



## thelittleboy (3 Sep 2013)

Hi,

I am a Dentist working as PAYE employee. It is compulsory for me to get the personal Professional Indemnity Insurance to work in my employers surgery.

I have to pay around 4500 euros per year from my own pocket for professional indemnity insurance.

My employer will not pay this for me and will not allow me to go self employed.

Is this money deductible from the tax I pay every year.

Can anybody give me some advice as to how I go about claiming this money back and how much of it I can claim back.

Also can I claim back any of the previous years payments I have made for professional indemnity insurance.

Between what my husband and I both earn we are on the 41% tax rate.

I have called revenue and they are not clear at all, any advice much appreciated. 

Also are there any dentist here who can say where I can get cheaper Professional Indemnity Insurance.

Thanks & Regards


----------



## peteb (3 Sep 2013)

Why would you think your professional indemnity insurance would be subject to some form of tax relief?


----------



## mandelbrot (3 Sep 2013)

peteb said:


> Why would you think your professional indemnity insurance would be subject to some form of tax relief?



Why do you think it wouldn't? If your employer makes you pay one of their overheads why shouldn't you be allowed it as a deduction from your income in that employment...?


----------



## Joe_90 (3 Sep 2013)

I have wondered why employers don't accommodate their employees by reducing the wage and paying the insurance.

In order to retain your job you have to pay your own insurance so you think you should get a tax deduction.

For PAYE there is a test and it's not often fulfilled. Wholly exclusively and necessarily incurred.

I think that your PI would qualify but I have never see it in practice.


----------



## dublin66 (4 Sep 2013)

I've claimed PI cover for doctors employed on a sessional basis by the HSE.  I have also claimed medical subs for IMO, medical council registration fee, subscriptions for expert websites and mobile phone usage.  (latter one on very special circumstances).

On two occasions Revenue queried the expenses and once a breakdown was provided the deduction was granted in full in both instances.  These were all Schedule E deductions.

In response to your query there is no reason why you can't claim them.  It may be worthwhile contacting your professional body to see if there is fast track route of claiming it.  Otherwise use a Form 12 - box 47 to claim the amount.  Only use a Form 12 if you don't have other sources of income etc - otherwise use a Form 11.  Don't try to claim it through PAYE Anytime as it isn't set up for "unusual cases" such as yours.  best of luck


----------



## thelittleboy (4 Sep 2013)

Thanks for the detailed reply. 
Did you get the full money back or the 41% of the total expenses.


----------



## bazermc (4 Sep 2013)

thelittleboy said:


> Thanks for the detailed reply.
> Did you get the full money back or the 41% of the total expenses.


 
Ah here! you will never get more back than the actual tax rate


----------



## Joe_90 (4 Sep 2013)

Be nice. As my learned friend has said you get 41% of the expense that you paid.


----------



## dublin66 (4 Sep 2013)

It was 41% of the total expenses - it is an expense and not a tax credit.  

You may be able to reclaim PRSI on the amount deducted also but for a PAYE person this a separate claim done through either the Collector General or the Department of Social Welfare (or whatever the name is now) - however I couldn't be arsed doing this as the potential refund wasn't worth the fight. I would also add if someone tells me that you won't get a PRSI deduction I would accept it as I'm not that familiar with the finer details of PRSI like this.


----------



## thelittleboy (6 Sep 2013)

Thanks everyone for the feedback.

Do anyone know if you can get cheaper professional indemnity insurance for Dentist ?


----------

