What your P60 can be used for?
31 July 2018
Please do not treat your P60 as a useless piece of paper as it may be very fruitful if you use it in the right way. By now if you are a PAYE employee, you should have received your P60 from your employer and this means it’s time to see if you can claim any tax back for last year.
A P60 is a document issued by Revenue which provides a summary of the Income Tax, PRSI and USC deducted by your employer in the tax year. Your employer deducts Income Tax based on the Tax Credit Certificate issued by Revenue and Revenue supplies this based on information they have for you; however, this may not always be correct. If your circumstances have changed; for example, you may have got married during the year, Revenue may not know this and you may be able to benefit from your spouse’s Tax Credits under Joint Assessment instead of Single Assessment.
Once you have checked that all the information is correct on the P60, it is then time to see if you are entitled to Income Tax back for any expenses you incurred the previous year and in some cases for the previous 4 years.
Tax back on rent paid to a private landlord in your rented accommodation is the most common rebate you can claim. The bad news is this only applies if you were renting on or before 7th December 2010 and it is being phased this year; however, if you have not claimed tax relief before you can claim back on the previous 4 years.
Medical expenses that are not covered by the State or by Private Health Insurance are subject to tax relief at a rate of 20%. GP visits are the most common expense to be claimed back; however, by visiting Revenue or Citizens Information online you will get a full list of what you can and cannot claim back.
Depending on the sector you work in, you may have to wear a uniform or have specialised clothing to preform you duties. This is seen as a work expense and therefore you may be due Tax back. Receipts are very important as proof of purchase may be required.
Now that you have all your expenses together, the easiest way to submit your claim is to go online and a simple Google search will provide you with a choice of companies willing to process your application. These companies have various payment options but the most popular one is where you pay nothing if you do not qualify for a tax refund.
Stephen Harrington QFA is a Qualified Financial Advisor.You can contact him through John F. Loughrey Financial Services by telephone on 074-9124002 or by email on firstname.lastname@example.org