Hidden Money…. You might be sitting on thousands and not even know it!

Hidden Money…. You might be sitting on thousands and not even know it!

What would you do with an additional €500? Or perhaps as we saw in one case an extra €8,000 that you didn’t know you were due?

With an austerity budget due on the 6th of December there has never been a better time to get your financial house in order. And in our opinion there is no better place to start than to spend a few minutes making sure that you get back every penny you are owed.

So who’s the creditor we are talking about? Who is going to potentially give you back a chunk of money? The combined forces of MyHome.ie and Irish Mortgage Brokers will tell you how….

What we are describing is called a ‘P21 Balancing Review’, it is something that PAYE workers can do and by filing you go back over the last 4 years and claim back any money that you may be due for various allowable expenses.

Do you rent? If so, that could instantly mean up to €1,600 (20% of €2,000 for the last 4 years). Did you go to a doctor or dentist over that time? Did you pay bin fees? Again, all of these are available at the 20% band.

The four main credits are:

  • Medical Expenses
  • Rent Relief
  • Service Charges (bin charges etc.)
  • Flat rate expense
The Revenue Commissioners don’t even have an estimate for what is unclaimed but what they can tell us is that in the years from 2006 to 2010 they gave back a whopping €800,000,000.00 to people who claimed back their taxes!

As many of you know, I’m also the director of accountancy firm Advisors.ie and we just finished a very busy Self Employed tax deadline period, but for those of you who don’t have non PAYE income you can do a return as well – and unlike the self employed there is NO DEADLINE or penalty involved based upon when you file. This service can be carried out for you by an accountant, or you can do it yourself by looking up the  IT1 tax credits on the Revenue website and then registering for ‘PAYE Anytime’.

PAYE Anytime is the individual equivalent of the ROS (Revenue Online Service) that accountants use to file Self Employed returns (form 11’s) and various other tax filing requirements.

Tom Kelly from The Revenue Commissioners says that PAYE Anytime is a huge technological and customer service advance for our PAYE taxpayers, has made the business of claiming reliefs much quicker and easier for all concerned.  Helping the taxpaying public to claim their entitlements is a central part of Revenue’s Strategy’. You might find it hard to believe, but Revenue don’t actually want your money (at least not the part that isn’t due to them anyway!).

There are companies that will do this for you and they charge a percentage of whatever they claim back. So don’t have any excuse, if you haven’t done your P21 Balancing statement then do it before 2011 is finished, because if you wait until next year you can only go back to 2008, whereas doing it now means you can go back to 2007.

Karl Deeter

(Twitter @karldeeter)

 

Karl Deeter is Operations Manager with Irish Mortgage Brokers in Dublin and a Director of Advisors.ie, Accountants and Auditors

There are 8 comments for this article
  1. David at 7:18 pm

    I don’t think there’s a minimum amount you can get relief on. I could be wrong but I’ve never heard of a minimum.
    VHI will provide a statement with any claim which revenue will accept instead of receipts

  2. Stephen at 2:09 pm

    @Jane you can claim on your VHI (depending on your plan) and then claim the balance (i.e. the total of medical expenses minus the amount given you by VHI) against tax.

    There are a couple of caveats –
    there is a minimum amount you can get a relief on (not sure what it is – probably a couple of hundred euro)
    the VHI will keep your receipts when you make a claim, so if the revenue does an audit you won’t have the receipts to show them

  3. James at 2:08 pm

    just to add te medical and bin charges. We didnt need to show the receipts (though could have) but were told to keep for 4 yrs should they do a random check.

  4. James at 2:07 pm

    I’ve claimed back on average 5-600 Eur a year through this. Once the tax office has your P60 you are good to go. Like clockwork come Jan each year I asked for a balancing statement. Also consider if you are married but never changed your tax status. Combined you may have extra tax credits or rate band extended. If one of you was unfortunate to have a spouse made redundant – again make sure you are claiming home carer (or similar)- though they cant be claiming dole also afaik if decision made to mind children.
    We had large medical expenses (over 5K) and though VHI provided back a very small portion we were still able to claim tax back on the amount that wasnt. It all adds up!! I tell my friends to do this all the time. Can be done online or over the phone once they have your P60.

  5. paul McCloskey at 1:56 pm

    You are doing a great job karl keep telling us the way it really is

  6. Jane at 1:40 pm

    Hi Karl, can I claim back tax relief for my medical expenses from the Revenue and also claim on the same expenses from my health insurance policy with the VHI?

    Thanks

    Jane – Sandymount

  7. Karl Deeter Author at 10:28 am

    @jamie true, that can happen. The premise above is that your employer is running the payroll taxes properly and that people have allowable expenses they don’t claim for. In your case it meant that you were making more than you should have and in turn it created a tax liability – did you have any allowable expenses to offset against that error?

  8. Jamie at 9:37 am

    You forgot to mention, the review can also bring negative result from revenue, and you may end up have to pay tax back, if the tax credits you received were inappropriate… My employer once made a mistake in my payroll for 6 months doubling tax credit… You can imagine how that ended…