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income levy refunds

Posted on | February 2, 2010 | 4 Comments

People start thinking about Income Levy Refunds!

2009 saw the Income Levy introduced and most people will not have thought about checking for Income Levy refunds.  especially as this is new, mistakes will have been made by employers out there, so it’s really important to get the levy calculations double-checked.

Here are Eight reasons why you might be due an Income Levy refund:TopTaxTips

  1. If you held a Medical Card at any stage in 2009, then you are due a refund of any Income Levy paid.  This means that even Income Levy amounts paid during the parts of the year when you did not have the medical card are available for refunds.
  2. If you are over 65 and your gross income for the year is below €20,000 for a single person and €40,000 for a married, you can claim a refund of an Income levies paid.
  3. Income Levy is charged on the pay received each pay period and not on the year to date amounts (like Income Tax).  No refunds of Income levy are made during the year. At the end of the year, if you were with the same employer all year, they should have calculated your Income Levy due on your annual pay and refunded any extra amounts paid.  As this is the first year Income Levy is in place, it’s important to check this happened!
  4. If you changed employer during the year, then your employer at the end of the year does not check for Income Levy refunds.  Each employer you had in the year should have given you an Income Levy Certificate.  Definately get these checked for overpayments!
  5. Where you worked part of the year earning over €289 a week, but earned less than €15,028 in the whole year, then you will be due an Income levy refund.
  6. If you received a redundancy payment and paid Income Levy, this is refundable – just check that the payment was deemed a ‘redundancy’ payment.
  7. If your pay is ‘lumpy’ due to payment of commission or bonuses irregularly, your income levy rate may have varied during the year – you could be due a refund of this.
  8. Certain Incomes are exempt from Income levy, such as  rent-a-room income and child benefit (see the full list below)

There are a lot of people who will fit into one of the categories above.  We will check your Income levy as part of an Income Tax Refund Claim – you just need to include the Income Levy certificates received in the year.  We can also check for PRSI and Health Levy Refunds.

Now the really small print – those exempt incomes.  some odd bits and pieces in there!

Interest on savings certificates
Exemption from BIK – Travel Pass, new bicycle scheme
Distributions to certain non-residents
Payments in respect of personal injuries
Special trust for permanently incapacitated
Haemophilia Trust
Hepatitis C
Thalidomide
Exemption in respect of certain payment under employment law
Foster Care Payment
Income from Scholarships
Child benefit
Early Childcare Supplement
Exemption in respect of certain expense payments
Expenses of members of Judiciary
State Employees: Foreign Service Allowance
Employee of certain agencies: foreign service allowances
Bonus or interest paid under instalment savings schemes
Certain interest not to be chargeable
Interest on certain securities
Certain foreign pensions
Basic and increased exemptions in respect of tax under section 123 (Redundancy) including SCSB
Relief for agreed pay restructuring
Payments in respect of Redundancy
Military & other pensions, gratuities and allowances
Veterans of war of independence
Rent a Room relief
Scéim na bhFoghlaimeoirí Gaeilge
Childcare service relief
Shares appropriated under Approved Profit Sharing Schemes
Shares under Savings Related Share Option Schemes (SAYE)
Shares under Approved Share Option Schemes
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Category: Income Levy, Income Tax, Paye Tax, Redundancy, Tax Refunds

Comments

4 Responses to “income levy refunds”

  1. Ralph Smith
    March 2nd, 2010 @ 12:02 pm

    Good Post guys, Its getting even more complicated for PAYE workers to keep up to date with their tax affairs. Do you claim income levy refunds for your clients?

    Ralph

  2. John O'Connor
    March 9th, 2010 @ 10:16 am

    Hi Ralph,
    Yup, they do keep on throwing extra taxes into the mix to make it more complicated!

    We do claim Income Levy refunds for clients and check all the income levy certs we receive.

    One issue we are having is that people who received income levy certs on finishing jobs early in the year didn’t keep there certs.

    Most refunds are quite small, except where you should have been exempt from paying the levy as a medical card holder.

  3. Gerry Ward
    April 12th, 2010 @ 9:15 am

    What is the situation where i have a gp card but my daughter has a medical card aged 11 years with Dowm syndrome and my wife getting carers allowence does her medical card in any way impact on my income levy??
    Thanks

    Gerry

  4. John O'Connor
    May 11th, 2010 @ 8:59 am

    Hi Gerry,
    Unfortunately it’s only based on your medical card status, so no relief from Income Levy for you.
    best wishes,
    John

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