In the midst of invoices and payslips, it’s not always easy to understand breakdowns and ensure you are receiving everything you should be. 

As a PAYE worker, you are eligible to claim certain reliefs and credits on top of the ‘standard’ list that includes:

• PAYE/ Earned income;
• Personal tax credit;
• Standard rate cut off;
• Age credit.

We’re breaking down some additional entitlements that you may be missing out on as a PAYE worker, so you don’t have to…

Working from Home

If you spend the majority of your working week in your own home, you can claim expenses that would otherwise be covered by being in the office, provided your employer has not already reimbursed you for them.

Examples of this are as follows:

• 10% of Utility bills (available from 2021 tax year, brought in during 2021)
• 30% of broadband 

This is then multiplied by the number of days worked over 365

Flat rate Expenses 

Loosely speaking, these include the cost of equipment you need to carry out your work. 

Expenses of this kind might include things such as stationary, uniforms, tools, technology, professional and trade subscriptions. In order for a claim to be made, the cost must be accrued during hours of service and the purchase has to be directly related to the individual’s job title. 

Visit this link for further information on items that can be placed under a flat rate expense claim. Note, the claim will be submitted as an income tax return. 

Medical Expenses  

This relates to the cost of any health expenses for either yourself or a dependent family member. A claim can be made once you, as the individual, paid for the health related expense out of your own pocket. 

In this regard, you can expect to get back tax relief at the standard rate of tax, currently standing at 20%. 

There are some instances, however, when you may not be eligible to claim for medical expenses. For example: 

• Amounts you have already received from an insurance policy
• Amounts you have already received from a public body such as the HSE 
• Amounts you have already received from other sources, like a compensation payment 

For a discussion on medical expenses, follow this link. 

Pension Contribution 

Investing in a pension won’t only set you up for a happier retirement, it can also reduce the amount of tax you pay during your working years. 

Essentially, the more you contribute to a pension fund could mean a lower annual tax deduction for you. 

Follow this link for a detailed analysis of claimable tax relief following pension contributions. 

Stay and Spend Credit 

Newly introduced in 2020, this new bracket allows for individuals to apply for relief on holiday accommodation and ‘eat in’ food and drink.

Applying a minimum spend of €25 per transaction, to receive this compensation you must submit receipts with the claim. 

It can be used against income tax or universal social charge liability and the transaction must be completed by a ‘qualified service provider’. 

For a list of ‘qualified service providers’ and a comprehensive guide to the terms and conditions of this tax break, follow this link. 

Tuition Fees 

Did you know, as a PAYE employee you can claim back relief from tuition fees? All you need to do is have paid the fee amount before you make the claim and you should be eligible for financial compensation. 

Send in the claim via this formatting during the tax year, or wait until it has ended to submit an income tax return to see relief from the overall amount of tuition fees. 

We understand that navigating your personal finances can be a roadblock at times. That’s why we’re here to help with a comprehensive full service accounting team on standby. 

Get in touch and let’s chat about how you can make the most of your taxes as a PAYE worker.