1. Midas is a tax based service and not a regulated financial product
Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.

2. Agenda Tax returns 2. Understanding how the PAYE System operates
3. Check your Rate Bands & Tax Credits
Maximise your Allowances and Reliefs
5. Sharing Credits
6. Other Taxable Income.

3. Tax Returns

4. In 2016, the average tax rebate for PAYE Midas members was €1,100!
How many people here do tax returns?
In 2016, the average tax rebate for PAYE Midas members was €1,100!
To date we have claimed back over €40 million in overpaid tax on behalf of Public Sector employees like you.
Source: Midas PAYE customer statistics 2016.

5. Why Public Sector Employees Overpay Tax
Factors
Repercussions
Not sharing credits and cut-off points in a tax efficient manner
Not claiming the appropriate tax credits, reliefs, rate bands, etc
Not availing of all allowances & entitlements
Tax Credit Certificate details incorrect
Incorrect allocations accumulate year on year.
Married
Change Job
Agency Work
Income changes
Birth of child
Human error when calculating and deducting tax.

6. You can claim back tax for a period of up to 4 years!
Are you availing of all the reliefs available to you?
Tax reliefs/allowances available
Employment expenses €€
Medical Expenses €€
Tuition Fees €€
Salary Protection €€
Pension €€
Tax Bands incorrect €€
Home Carer €€
Rent Credit €€
You can claim back tax for a period of up to 4 years!

7. Irish Historic Income Tax Rates
Current rates are 40% + 20%.
Source: Revenue

8. Payslip analysis
Review your payslip to ensure you are getting what you are entitled to.
Check your point on the salary scale
Check your Standard Rate Cut Off Point (SRCOP)
Check your deductions
Incremental Credit refunds
How much tax are you paying?

9. FAQ’s Am I on the right Point of Scale?
What is the Standard Rate Cut Off Point (SRCOP) and how does it affect my take home pay?
What is a tax credit?
What is my PRSI class – and what does it mean?
What are the ultimate charges against my Gross pay?
What impact will voluntary deductions have on my pay?

10. 1.Check your Point on the Salary Scale 6. Not taxable
5. Check your deductions
1.Check your Point on the Salary Scale
6. Not taxable
3. Standard Rate Cut-Off point: Should be at least €1,300
4. Should be at least 128 if PAYE
2. Check your PRSI class
(A1 / D)

11. The PAYE System

12. Useful Tax Documents A recent payslip P45 P60
Your tax credit certificate.

13. Tax Credit Cert YOU PAY too much or too little! If it’s wrong……
It instructs your employer on the amount of Tax to deduct.
If it’s wrong……
YOU PAY too much or too little!
Text “CERT” and your PPSN to to
get a copy of your Cert.

14. How to calculate Income Tax
Gross Salary/Pension/Other Income - (PRSI & USC) Less Superannuation/Pension Levy/AVC/NSP/PHI = Taxable Income Apply Rate Bands - 20% & 40% Deduct Credits = Income Tax Liability

15. Check your Tax Credits & Rate Bands

16. Methods of Assessment
Single Assessment – Taxed as a single person throughout the year and at end of year review.
Separate Assessment – Taxed as a single person throughout the year. Unused credits and rate bands may be transferred between spouses after year end.
Joint Assessment – Taxed jointly throughout the year. Allows flexibility in allocating tax credits and rate bands. 3
methods

17. Rate bands First €33,800 taxed at: 20%
Earnings over €33,800 taxed at: 40%
2015 example - A Public Sector Employee earning €40,000 pays €9,240 in tax before they apply their credits and €5,940 after applying their tax credits.

18. Tax credits The more credits you accumulate, the less tax you pay.
….they are worth money
and shouldn’t be ignored!

19. Standard Rate Bands - 2017 Personal Circumstances 2017 Single
20%
40%
Lone Parent
20%
Married with one income
20%
Married with two incomes*
20%
*transferrable between spouses, maximum of €42,800 with one spouse.

21. Personal Tax Credits - 2017 Personal Circumstances 2017
Single Person Credit
€1,650
Married Person Credit
€3,300
PAYE Credit
Single Parent

22. Widowed Tax Credits 2017 Personal Circumstances 2017 Widowed Person
€2,190
Widowed Parent (Bereaved in 2013)
Tax Credit Bereaved: 2014
2015
2016
€2,250
€2,700
€3,150
€3,600

23. Other Tax Credits Home Carer - €1000* Incapacitated Child - €3,300
Dependant Relative - €70**
Age Credit - Single €245 / Married €490
*Cannot have an annual income in excess of €7,200.
**Cannot be claimed in conjunction with Home Carer’s Credit.

24. Maximise your Allowances & Reliefs

26. Tax on your State Pension
Since 1st January 2012:
Taxable – Widows/Old Age/Jobseekers
Revenue will deduct your tax credits & rate band by the amount of income received
This will reduce your expected salary from your other pension/employment income
Revenue will review their figures annually.

27. Exemption Limits 2017 for over 65’s
Personal Circumstances
2017
Single/Widowed over 65 years of age
€18,000
Married (over 65)
€36,000
Increased by:
1st child
2nd and subsequent child
€575
€830
Marginal Relief
40%

28. Flat Rate Expenses Teachers/Lecturers on full hours: €518
Agreed between Revenue and your Union for expenses incurred directly related to the nature of your employment.
Relief at your marginal tax rate
Teachers/Lecturers on full hours: €518
Principals, Professors, Heads of Schools/Departments: €608
Teaching Council: €90
Part-time Lecturers/Teachers (mainly teaching + P.E./Guidance Counselling) get an additional: €126

29. How much is this allowance worth to you?
€207 per year if you are earning €40,000!*
*for a teacher/lecturer on full hours claiming the flat rate expenses tax credit €518.

30. Flat Rate Expenses Relief at your marginal tax rate
Nurses
Agreed between Revenue and your Union for expenses incurred directly related to the nature of your employment.
Relief at your marginal tax rate
Supply and launder your own uniforms - €733
Supply your own uniforms but are laundered free - €638
Launder uniforms that are supplied by employer - €353
Uniforms supplied and laundered by your employer - €258
Nurses on short term contracts through an agency - additional €80

31. *nurse claiming the flat rate expenses tax credit @ €733.
How much is this allowance worth to you?
€293 per year
if you are earning €40,000!*
*nurse claiming the flat rate expenses tax €733.

32. Tuition Fees Relief for Tuition Fees in approved 3rd Level Colleges
Primary 2 year+ / Masters 1 Year +
Ireland and EU based courses
Limits: €7,000 total fees per person p.a.
Exemption (per household):
First €3,000 for full time course not claimable
First €1,500 for part time course not claimable.

33. Claim relief on your Medical Expenses
Make your private medical insurance claim (
Tax relief at source, unless paid by employer.
2. Avail of the Drug Payments Scheme - max €144 pm (
3. Apply for your tax relief through Form Med 1.

34. Qualifying Health Expenses
Doctor, GP, consultant or hospital fees
Items or treatments prescribed by a Doctor
Approved nursing home fees (40%)
Non-routine Dental Treatments
Prescribed medicines
Certain dietary products, e.g. Coeliac/Diabetic.
***keep the receipts for 6 years***

35. Rent Rent Credit Renting in a private residential property
Must have been renting on 7th December 2010
2017 Credit:
€160 if aged 55 or over
€80 if under age 55
To be phased out by end 2017.
Rent a Room Relief Scheme from Jan ‘15
Tax-free income where owner occupier
Maximum is €12,000 per annum including meals, laundry etc.
Must still be declared to Revenue.

36. Earning more than €5,000 outside of PAYE Income
If you earn more than €5,000 of income from any source outside the PAYE system you are obligated to file a return annually. If you don’t file a return, penalties and late fees apply.

37. Other Income

38. Rental Income Income - Expenses = Taxable Profits
Example of allowable expenses
Mortgage interest (80%)
Insurance
Mortgage protection
Management Fees
Letting Fees
Repairs & Maintenance
Advertising
Accountancy fees
Painting & Decorating
PRTB
Utility bills
Wear & Tear on Fixtures & Fittings.

39. Mortgage repayment / interest
Rental Income 2016
Taxpayer’s View
Revenue’s View
Monthly Rental Income
€1,000
Mortgage repayment / interest
(€1,200)
(€720)*
Profit / (Loss)
(€200)
€280
* Assuming 80% of repayment is interest, restricted to 75% allowable (2016).

40. Other Income Landlord Self Employment Deposit Interest where DIRT paid
Foreign Income
Irish Dividends where 20% tax deducted.

41. Pay Related Social Insurance (PRSI)
From 1st Jan ‘13, the first €127 is no longer exempt.
Class D (entered public sector pre 1st April 0.90%
Class A (entered public sector post 1st April 4%
Class M (Occupational 0%
Exemptions & Reliefs:
All income is exempt from PRSI from age 66.

42. Universal Social Charge (USC)
Tax payable on gross income at the following rates from Jan ’16:
.5% - on the first €12,012
2.5% - on the next €6,760
5% - on the next €51,272
USC rate of 8% for incomes in excess of €70,044
Non PAYE income >€100,000 = 3% Surcharge

43. USC rates decreased as follows:
Earning €0 - €12,012: % (reduced from 1.5%)
Earning €12,013 - €18,668: 3% (reduced from 3.5%)
Earning €18,669 - €70,044: 5.5% (reduced from 5.5%)

44. Universal Social Charge (USC)
Current exemptions & Reliefs:
Department of Social Protection income
Total income less than €13,000
Over 70 and salary is less than €60,000 per annum: USC is capped at 2.5%
Under 70, if salary is less than €60,000 and you hold a full medical card: USC is capped at 2.5% .

45. Remind me why we should file regular tax returns?

46. Pension Contributions
Age Considerations 20
Multiple Jobs, e.g. Subbing
Medical expenses
Rent Relief 30
Mortgage Relief
Medical expenses
Pension Contributions 40
AVC’s
Medical expenses
Sharing
Credits
Tuition Fees 50
Parent
Nursing
Home Fees
Last Minute
AVC’s
CAT/CGT

47. 70 66 65 60 55 50 Age Considerations 2nd Spouse Retirement
State Pension
Medical expenses 66
DIRT Refund
Cap on USC
Medical expenses 65
Inheritance Planning
ARF Distributions
PRSI
Exemption
Medical expenses
Last Minute AVC’s 60
Age
Credit
Medical expenses 55
Tuition Fees
1st Spouse
Retirement
Medical expenses 50
CAT/CGT
Age Considerations
Parent Nursing Home Fees

48. Organising Your Affairs
Request & review your Tax Credit Certificates.
Ensure correct allocation of Standard Rate Band between spouses.
Notify amendments to Inspector.
File Tax Returns annually.
Review previous Tax years.
Make sure you claim for any S & C/training & temporary/marriage gratuity interest and other superannuation deductions.
***Seek professional advice***

49. If you need any help with your tax affairs we are available
Thank You.
If you need any help with your tax affairs we are available
on (01)
Any Questions?
Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.