New Earned Income tax credit

October 2016

Question

I am self-employed and make a tax return each year. What is the new tax credit for self-employed people? How do I apply for it?

Answer 

From 1 January 2016, a new Earned Income tax credit of €550 is available for self-employed people (in addition to the normal personal tax credits and other reliefs). Proprietary directors who are not eligible for the PAYE employee tax credit can also claim this credit.  

This Earned Income Tax Credit is calculated at 20% of your self-employed (or earned) income. It does not include any earned income that is taken into account for the PAYE employee tax credit. Note that if you also qualify for the PAYE tax credit, the combined value of both tax credits cannot exceed €1,650.  The maximum relief for 2016 is €550. However, if your earned income is below €2,750, the tax credit is restricted to 20% of the income. For example, if your total earned income is €2,000 your maximum tax credit is 20% of this or €400.

As a self-employed person you pay tax under the self-assessment system. Under this system (known as "Pay and File") you must file your return, complete a self-assessment, and you must pay the balance of tax outstanding for the previous year. At the same time, you must pay preliminary tax (an estimate of tax due for your current trading year) for the current year. When you pay preliminary tax for 2016 you can include the Earned Income tax credit in your calculations. However the new Earned Income tax credit is not available for the 2015 tax year.

The date for payment of tax and filing of returns is 31 October each year. For 2016, if you file your tax return online using the Revenue Online Service (ROS), the due date is extended to 10 November 2016.  

New Paternity Benefits

Question

My partner and I are expecting a baby in September. Can I claim the new Paternity Benefit? Are there any other benefits I can claim?

Answer

Paternity Benefit is a new payment for employed and self-employed people who are on paternity leave from work and covered by social insurance (PRSI). The PRSI classes that count for Paternity Benefit are A, E, H (with the exception of serving members of the Defence Forces) and S (self-employed).

Paternity Benefit is paid for two weeks (in one block) and is available for any child born or adopted on or after 1 September 2016. You can start paternity leave at any time within the first 6 months following the birth or adoption placement. If you are already getting certain social welfare payments, then you may get half-rate Paternity Benefit.

You must notify your employer four weeks before you intend to go on paternity leave (12 weeks if you are self-employed). You must provide proof of the expected date of birth (this is a certificate from your spouse’s or partner’s doctor confirming when the baby is due) or confirmation of the birth if you are applying after the baby has been born. In the case of adoption, you must produce a certificate of placement.

Paternity Benefit is available from 1 September 2016. You can apply online at mywelfare.ie for Paternity Benefit from 5 September 2016 (your payment will be backdated if necessary). You must have a Public Services Card to apply for Paternity Benefit.

You can also claim up to 18 weeks of unpaid parental leave from work (until your child’s eighth birthday - or 16th if they have a disability).  Both parents have a separate entitlement to 18 weeks’ parental leave.

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000

Know Your Rights: Donations to charity

Question

I make regular donations to charity. Can I claim tax back on my donations?

Answer

The tax code provides for tax relief for “eligible charities” and other “approved bodies” including schools and educational institutions. Revenue lists bodies that have been granted a charitable tax exemption on its website.

If you make a donation of at least €250 to an eligible charity, tax relief on your donation is allowed to the charity rather than to you (the donor). Cash donations made in instalments, such as by standing order, also qualify. The charity can claim a refund of tax on your donation at the end of the tax year. Relief is granted to the charity at a blended rate of 31% rather than the rate you actually pay. The donor is not entitled to a repayment of any part of the tax that has been repaid to the charity.

The amount repaid to a charity for any tax year cannot be more than the amount of tax actually paid by the donor for that year. For example, if your income tax liability for 2015 is €350 (which you have paid), the repayment to the charity is restricted to that amount. The minimum qualifying donation for individuals in a year of assessment is €250 and the maximum qualifying donation is €1 million. (Note that corporate donations are treated differently.)

If you are willing to allow the charity claim a refund on your donation, you need to fill out a form - either an “Annual Certificate” (CHY4) for a single tax year, or an “Enduring Certificate” (CHY3) which lasts for up to five years. You can find more information about tax refunds to charitable organisations in Revenue’s booklet about the Charitable Donation Scheme (pdf).

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000

Know Your Rights: Small Claims Court

Question

I am not happy with work that I had done in my house by a builder and will have to pay for someone else to finish the job properly. What can I do to recoup the additional expense?

Answer 

If your original builder is unwilling to compensate you, you may be able to pursue a claim against the builder through the Small Claims procedure. The aim of this procedure is to provide an inexpensive, fast and easy way for consumers to resolve disputes without needing to employ a solicitor. The maximum amount you can claim is €2,000. The Small Claims service is provided through local District Court offices.

Anyone who has purchased goods or services for private use from someone selling them in the course of business may submit a claim using the Small Claims procedure. You can make claims for faulty goods or bad workmanship, minor damage to property and for the non-return of rent deposits for certain kinds of rented properties. Businesses involved in disputes with other businesses can also use the Small Claims procedure.

To make a claim, you complete an application form, which you can get from the Small Claims Registrar at your local District Court office. You can also get help in completing the form from the Registrar. Make sure you use the correct name and address of the person or company against whom you want to make the claim. The completed form with a fee of €25 should be lodged with the Small Claims Registrar. You can also apply online at the Courts Service Online website, csol.ie.

The Registrar sends a copy of your application to the person against whom you are making the claim. If the other party does not reply within 15 days of receiving your application, your claim will be automatically treated as undisputed and you can apply for a court order in your favour.  But, if your claim is disputed, the Registrar will contact you and let you have a copy of the reasons why the other party is disputing your claim. The Registrar will try to negotiate a settlement to the dispute. If no settlement can be reached, the matter is then set down for a court hearing in the District Court. 

You can get more information on your options from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330 

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000

Update 7th September - The National Flag

Question

What are the rules around using the national flag. Is it true that you can’t write on it?

 

Answer

The National Flag of Ireland is often referred to as the tricolour and consists of three colours – green, white and orange. It was adopted as the flag of the Irish Free State in 1922. It was formally confirmed as the National Flag in the 1937 Constitution:

“The national flag is the tricolour of green, white and orange.”

Article 7: Bunreacht na hÉireann.

As part of the 1916 commemorations, the national flag was presented to every primary and post-primary school in the State. Along with the flag, schools received a copy of the 1916 Proclamation as Gaeilge and in English, and a booklet detailing the guidelines for respecting the flag.

These guidelines are issued by the Department of the Taoiseach and give extensive information about when the flag can be flown and how it should be used. For example, no other flag or pennant should be flown above it when it is being flown in Ireland. Care must also be taken not to let the flag touch the ground or become entangled with trees.

The flag should never be defaced by placing slogans, logos, lettering or pictures of any kind on it, for example, at sporting events and it should not be draped on cars, trains, boats or other modes of transport. It should not be carried flat, except when used to drape a coffin. The rules also say the national flag should be replaced if it has become worn or frayed, as it is no longer fit for display in a respectful manner. The same principles apply if the flag is reproduced in printed or electronic format.

However, these guidelines are not statutory guidelines. In other words, there are no laws setting out the rules around use of the flag. This means that there are no penalties for anyone who does not follow the guidelines.

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000

Know Your Rights: GP services with medical card

Question: I have a medical card but my doctor has recently charged me for a medical certificate and for a blood test? Should I have to pay for these or should they be covered by the medical card?

Answer

Doctors provide services to medical card holders under the General Medical Scheme (GMS). This means that they have a contract for these services with the Health Service Executive (HSE). The services provided include consultations with patients and necessary treatments that would normally be provided by a general practitioner (GP). GPs also provide prescriptions for drugs, medicines and appliances as required.

Not all GP services are covered under the agreement. For example, if you need a medical report for a driving licence application you may be charged. You may also be charged for medical certificates for absence from work. If you need a medical report to apply for a social welfare payment, the Department of Social Protection may cover the fee.

If you have a medical card or a GP visit card and you need a blood test to diagnose or monitor a condition, this should be provided free of charge. If you have been charged for a blood test by your doctor, you can complain to the HSE. The HSE deals with these complaints on a case by case basis and will arrange for a refund, where appropriate. You make a complaint by contacting your Local Health Office.

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000

Update 18th August

Question

I have a medical card but my doctor has recently charged me for a medical certificate and for a blood test? Should I have to pay for these or should they be covered by the medical card?

Answer

Doctors provide services to medical card holders under the General Medical Scheme (GMS). This means that they have a contract for these services with the Health Service Executive (HSE). The services provided include consultations with patients and necessary treatments that would normally be provided by a general practitioner (GP). GPs also provide prescriptions for drugs, medicines and appliances as required.

Not all GP services are covered under the agreement. For example, if you need a medical report for a driving licence application you may be charged. You may also be charged for medical certificates for absence from work. If you need a medical report to apply for a social welfare payment, the Department of Social Protection may cover the fee.

If you have a medical card or a GP visit card and you need a blood test to diagnose or monitor a condition, this should be provided free of charge. If you have been charged for a blood test by your doctor, you can complain to the HSE. The HSE deals with these complaints on a case by case basis and will arrange for a refund, where appropriate. You make a complaint by contacting your Local Health Office.

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000