With the income tax deadline coming up at the end of the month, we here at Kearney Naughton & co have decided to dedicate this week’s blog article to outlining some expenses can be claimed when filing your income tax return.
Have you or a family member been sick recently? If so you may be able claim relief on those expenses. You can claim relief on doctor fees or any drugs and medicines prescribed by a doctor. Relief may also be claimed on any surgeries you may have needed.
You can also claim relief on some dental procedures you may have had. You will be able claim relief on procedures that are classified as non-routine. Dental costs such as getting a crown or tip replacing are costs which you can claim tax relief on. Routine costs such as fillings and cleaning unfortunately cannot claim tax relief.
In a business it is vital to keep track of your expenses. When it comes to filing a tax return what expenses are allowable.
The following expenses are all allowable;
- Stock purchased for resale.
- Employee Wages.
- Bills for the business such as rent, rates, advertising, light and heat.
- Any repairs that may need to be done.
- Accountancy costs. All bookkeeping and accountancy costs are fully deductible against your profits.
- Interest on a loan.
If you have any expenses that are split between business and personal use you can claim a part of this expense. Costs such as phone bills and motor expenses.
If you have expenses for a vehicle you drive for both personal and business use you can claim some of these as motor costs. Theses expenses include any fuel or maintenance of the vehicle.
With Christmas just around the corner it is important to keep in mind entertainment costs such as a Christmas party for staff will also be allowable if the costs are reasonable.
Also, Business can gift certain vouchers to employees up to €500 per Employee by way of a Christmas Bonus. The Employer or Employee do not need to pay tax on these vouchers.
When renting it is important to know what relief is available to you. Expenses that are considered allowable are listed below;
- Rates, Maintenance fees and any professional fees such as accountancy fees.
- Insurance on the property.
- Interest on a loan or mortgage in relation to the premises.
- Repairs to the premises and servicing costs that have not been repaid by the tenants such as light and heat or electricity.
- Property management fees such as advertising.
When having invested in a new fixture and fittings you may claim capital allowances. Items such as furniture or some appliances can be counted as capital expenditure. Capital allowances are claimed at 12.5% over an eight-year period.
For example, if the owner of a rented house buys new furniture for the house for €1,000 they may claim €125 each year for the next eight years.