Deductions from your paycheque require serious consideration, and you deserve to know why they occur. At Irish Tax Rebates’ Tax Tips, they help you understand tax laws and how they affect your income for your construction business. With more than 20 years of professional experience in tax-related matters, their team offers the most reliable information that you can find. The tips and advice that they provide can increase your understanding of Irish tax law and help you claim any rebate that you may deserve.
Understanding the tax system for your construction business
The tax system requires your employer to deduct money from your earnings for taxes, Universal Social Charge (USC) and (PRSI). Unfortunately, the Pay as You Earn (PAYE) system does not prevent employers from making errors in deductions, and everyone must participate in it except the self-employed. A construction company equipped with a reliable contractor billing software will have better oversight on their figures.
Irish Tax Rebates can help you understand how to request a rebate when mistakes occur. As a new taxpayer or one with years of experience working in construction, you can take some simple steps to get any overpayment returned to you. Your employer indicates the amount of your deductions on your pay slip so you have the information that you can use when you think you have made overpayments.
As a taxpayer in the construction field who has received wages through the PAYE system at any time within the last four years, you may have a rebate that you can pursue. Our advice has helped many construction workers, labourers, tradesmen and site managers learn how to get tax relief with tax back on overpayments. There are three ways that can help you obtain any rebate that you may deserve.
Counting tools and uniforms as flat rate expenses
The expensive tools and the durable clothing that you need on the job can amount to a significant amount over time. When you treat them as flat rate expenses, they can reduce your tax burden. A review of the professions and allowable deduction per annum can help you decide on the merits of seeking a tax back.
- Bricklayer: €175
- Fitter mechanic, plasterer: €153
- Electrician: €153
- Mason, roofer slater, tiler, floor layer, stone cutter: €120
- Driver, scaffolder, sheeter, steel erector: €52
- Professionals: engineers, surveyors and other similar: €33
- General operatives (labourers incl. Public Sector): €97
- Cabinet makers, carpenters, joiners: €220
- Painters, polishers, upholsterers: €140
- Plumbers (non-welders): €177
- Plumber-welders: €205
- Pipe fitter-welders: €205
An advantage that this form of tax relief provides lets you reduce your taxable income. Different from a tax credit, it does not directly reduce your tax liability. The tools and equipment, uniforms or work clothes that you needed for your job over the past four years may qualify for a rebate if you have not claimed tax relief for them. Your request for tax back may provide as much as several hundred euro.
Claiming every tax credit
As a PAYE worker in Ireland, you have the right to claim a tax credit of €1,650 as of 2016. However, the responsibility for correctly claiming and assigning your tax credits rests with you and not with the Revenue Office. To receive every credit that you deserve, make sure to double-check your records. A change in employment over the past four years may have prevented a consistent reporting of your deductions. Another condition that can affect accurate reporting involves your return to work after the resurgence in construction occurred. Either situation may indicate a need to claim a PAYE tax back.
Making a tax back claim under special circumstances
As a construction worker, you often move from job to job with only short-term contracts. An assumption that the Revenue Office makes can deprive you of tax credits unless you correct it. The salary that you report when you register a new job with Revenue may allow them to automatically assign your credits across a full year. That procedure may work well if you keep the same employer for a year, but it can make you eligible for a sizable tax back if you had a short-term contract. You may have a tax rebate for USC as well.