Claiming tax credits from income protection insurance

[Dr Strangelove]

I purchased income continuance via broker late last year and want to claim the associated tax relief.

The provider has given me a pdf certificate stating that premiums are (say) €1000 a year.

I have two problems when I go to myaccount:

• When I go to claim tax credits>income continuance I input €1000 but it says that my tax credit is €200. Shouldn't it be €400? (I'm a higher rate payer).
• There doesn't seem to be anywhere to upload the certificate from the provider.

Can anyone help?

PS: employer has nothing to do with this so no payroll deduction going on.

 

[Opus2018]

Hi there,

It might be that you can only claim it at the standard rate, say like health expenses?

I imagine that’s the reason for it - there should be an explanatory note on Revenues website or post a query on myaccount.

Best,

Opus2018

 

[Dr Strangelove]

@Opus2018

Thanks for the tip but Revenue don’t say that tax relief is standard rated, and the broker selling it to me was very clear that it gets higher rate relief.

 

[Clarkey]

If you look at your new tax credit certificate your standard rate cutoff point will also have increased by €1,000

 

[AAAContributor]

As per the post above, Revenue adjust your tax credits & SRCOP.

See here:

Permanent Health Benefit contributions

You might take part in a scheme to have your income continue if you are absent due to illness or injury

www.revenue.ie

 

[Dr Strangelove]

Thanks, I understand about the cut-off point and credits part now.

Anyone know why there’s nowhere to add the certificate from the insurance provider ?

 

[AAAContributor]

Anyone know why there’s nowhere to add the certificate from the insurance provider ?

https://lion.ie/wp-content/uploads/2023/02/How-to-Claim-Tax-Relief-on-Income-Protection-in-Ireland.pdf

 

[jpd]

I don't think it is necessary to upload the form any more - keep it handy in case revenue audit you or ask for it

If it was necessary to upload the form, there would be an option on the web page

 

[Dr Strangelove]

If it was necessary to upload the form, there would be an option on the web page

Thanks - even the link above from @AAAContributor shows the upload of receipt via MyAccount. I think I will just keep it on file in the event of audit.

 

[jpd]

The link shows an upload via MyEnquiries not MyAccount

 

[daheff]

i tried to do this just now and it would not allow me to process it. I had to submit a request via MyEnquiries. I thought this had to be filed post year end, so does anybody know if its possible to claim retrospectively for 2023?

 

[relax carry on]

i tried to do this just now and it would not allow me to process it. I had to submit a request via MyEnquiries. I thought this had to be filed post year end, so does anybody know if its possible to claim retrospectively for 2023?

Yes. You just add it in your 2023 tax return via your Revenue myaccount. You might have to upload your cert to show you aren't already getting tax relief on it.

 

[daheff]

I had added this to Form 11 previously with no adjustment to the final settlement amount. Today it seems its now taking account of this, but bizarrely no longer taking account of DIRT due. Revenue should be embarrassed by how bad their website is now.

 

[cally1990]

You add it under income continuance in the add credits section within manage your tax 2024

Credits will increase by 20% of the premium

Your standard rate cut off point will increase by the full amount of the premium

The net saving to you will be 40% of the cost and this is provided via payroll

So you're paying 60% of it in reality