Rent Relief

S

scully

Registered User
Messages
78
Since watching Rip Off Republic on tv i noticed he started talking about not many people know that they can claim certain tax credits etc.
I went to the revenue website and read that if i rent private accommodation i can claim rent relief.

I have been renting for 4 years. So in the box where it says "year for which claim is to be made" am I only entitled to last year of any i entitled to claim for the 4 years.

Also is there a section on the website that i put my income details and it tells me what i should be taxed. I cant seem to find it.


edit: one other question it states that the maximum relief on tax year 2005 is €300 so what does this mean, how do they calculate the tax credit etc
 
I'm frequently confused by tax but for what it's worth here's my understanding - it doesn't mean you get 300 euro more per year but rather means you pay tax on 300 euro less of your income each year. So in cash terms it works out between 5 and 10 euro less tax per month I think. The good thing about it is that if you're claiming for previous years too you get it all together so it feels like a lot. I'm not sure how they do it now but when I first claimed rent relief it was about 1998 and I had been renting for almost two years. As far as I remember I got a cheque for about £120 sent out to me. Then the adjustment was made to my tax free allowance (now tax credits) so that after that I paid a little bit less tax every month.

It would be good if someone who knows what they're talking about to be able to let me know if I'm sort of heading in the right direction with this explanation!
 
just for more information

I rent weekly which for my part is € 65
I also get paid weekly and taxed weekly.
 
If you feel that you have missed out on any tax credits or allowances for the past few years then write to Revenue with details including copies of your P60s for the relevant years and they will sort it out. I think that four years is now the period over which you can claim unused credits/allowances. It used to be longer but was changed recently. Further back than that and the unused credits/allowances are forfeited. Check out this thread for more on common credits/allowances that people can claim.
 
Your tax credits are increased by €300 per annum. After calculating your tax your get a figure called gross tax. The tax credits are then deducted to give your net tax.
So if your tax credits are increased by €300 then you get a reduction of 300 in your tax bill.
 
if i qualified for the 4 years - (4 years in November)
what would my tax be if i got the relief

I get 355.77 per week gross
tax payable after tax credits is 16.35

I never paid PRSI, not sure why I thought it was optional, plus boss looks after all my tax etc

net income is 339.42
 
PRSI is not optional but on your salary you should probaby be on PRSI Class AX as explained here. Check out your P60s which should clarify your tax, PRSI rates and all deductions.
 
oh oh, if im classed as AX, then i should be paying 9.15 in PRSI and im not. Not on purpose, its been like that for 3 years, will i owe all this back. What shall I do.....
 
Check your P60s as I mentioned before. If you think that there is some discrepancy then query it with your employer. Make sure that they are deducting and remitting the correct tax and PRSI/health levy deductions to Revenue. If you still get no joy then contact Revenue and sort it out. If the fault does not lie with you then they will most likely take a lenient approach to collecting any outstanding deductions and dealing with the overall situation.
 
Where does the onus lie if the employer is not deducting the correct tax and/or prsi from an employees wages? Most employees do not understand the rates of prsi (in particular), and therefore they might not know whether or not there is a discrepency.
 
Ultimately the taxpayer is responsible for ensuring that they are paying their appropriate tax and PRSI/health levy liabilities. Ignorance of the systems is no defence. In the case where an employer is not deducting or remitting the correct amounts the responsibility would lie primarily with them. However the individual may still be liable to pay outstanding employee deductions if they were neither deducted nor remitted. If the employer had deducted them but not remitted them then the employer would be liable. Everybody should check their statements of tax credits, payslips, P60s etc to make sure that they are paying the appropriate amounts. If they can't do this themselves then they should seek assistance (e.g. from Revenue, Citizen Information Centres, financial/tax advisors, unions etc.)
 
Thanks Clubman,

Just curious after reading the previous posts. I'm all right as I know how to read a payslip, but must teach mrs joe1234 so she also knows.
 
I always thought that a company's accountants would sort all that stuff out. All you do is give them a p45 when you start. They get copies of all tax credits etc for them to implement on there system
 
Any decent employer should sort it out but every individual should double check their statements of tax credits, P60s, payslips etc. because mistakes (on the part of employers and Revenue) can happen and, unfortunately, there are still some unscrupulous employers out there.
 
will do in future, but i guess average people just havent a clue about tax. like me the only time they complain is when there paying too much lol
 

I have to say I have always thought this is quite unfair, if you underpay they will (rightly) go back a hell of a lot further than this, but if you overpay you only get 4 years.
 
It used to be longer (7 or 10 years maybe?) that you could backdate claims but it changed the limit to 4 not too long ago. All the more reason to make sure that your tax affairs are up to date each year.
 

For prior years you will have to apply to Revenue. They may do it over the phone for you.

For the current tax year 2005 you are entitled to 300/52*no of weeks worked this year

It will look something like this (All figures should be calculated cumulatively)
At week 40
Gross Pay 355.77
tax overpaid to date 220.00
Net Pay 575.77

thereafter
Gross Pay 355.77
Tax 10.60
Net Pay 345.17

I havn't taken the PRSI into account

Hope this makes sense. It not let me know and I'll try to explain.
 
yeah I thinks thats about right - for the previous years, the revenue will send you out a rebate cheque equal to the amount of tax credits you missed out on, hence if you reclaim 4 years, that will be 4 x €250 (circa) = €1000
 
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