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Know Your Rights: Citizens Information December

Know Your Rights A: The P60 tax certificate

2013

Question

My employer says I will get a P60 in January. What is this?

 

Answer

 

A P60 is the tax certificate you receive from your employer at the end of each tax year. Its full title is ‘Certificate of Pay, Tax, Pay-Related Social Insurance, Universal Social Charge and Local Property Tax’.

 

The P60 is an important document. It states your pay during the year, the tax you paid and other deductions such as PRSI and Universal Social Charge. The P60 now also includes a record of Local Property Tax (LPT) paid, if you opt to have LPT deducted at source from your earnings.

 

If you need to claim a social welfare benefit you must give a P60 to the Department of Social Protection as evidence of how many PRSI contributions you paid in the year. You may also be required to provide a P60 as proof of your income, for example, if you are making a bank loan or mortgage application, if you are applying for social welfare payments or if you are applying for a student grant.

 

Your employer should give you your P60 for the previous tax year by 15 February of the following year. If your employer does not give you a P60 you should contact your local tax office. Revenue can contact your employer to obtain your P60 for you. Only an employer can issue a P60. However, Revenue can provide you with details of the pay and tax for the year in question as returned by your employer, which Revenue has on file.

 

If you stopped working for an employer before 31 December of the tax year you do not get a P60. You should get a P45 instead.

 

Further information is available from the Citizens Information Centre below.

 

Service which provides a free and confidential service to the public.

Bray Citizens Information Centre 3/ 4 The Boulevard, Quinsboro Road  

Tel:  0761 07 6780

Arklow Citizens Information Centre 73 Lower Main Street 

Tel: 0761 07 6750

Wicklow Citizens Information Centre 9/10 Lower Mall  Tel: 0761 07 6840

Baltinglass Tel: 086 048 1880          Blessington Tel: 086 048 1881

Glendalough Tel: 0404 45611          Carnew Tel: 053 94 26555

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

 


Know Your Rights B: Home Renovation Incentive

 December 2013

 

Question

I need to carry out some house repairs. What is the new scheme for home renovation that was announced in Budget 2014?

Answer

The Home Renovation Incentive (HRI) is a new scheme that enables homeowners to claim tax relief on repairs, renovations or improvement work carried out on their homes. The incentive will be paid in the form of a tax credit at 13.5% of qualifying expenditure, which can be set against your income tax over 2 years. You must be paying income tax – under PAYE or self-assessment – to avail of the incentive. You must also be up to date with your Local Property Tax obligations.

 

Any contractor you use must be registered for Value Added Tax (VAT) in Ireland and be tax-compliant. If several contractors, such as a builder, a plumber and an electrician, carry out qualifying work on your home, you can combine the cost of the works to make up the minimum qualifying expenditure of €5,000 excluding VAT at 13.5%. (The maximum qualifying expenditure is €30,000 excluding VAT at 13.5%).

 

Repair, renovation or improvement work subject to VAT at 13.5% all qualify for the HRI,  including extensions, garages and attic conversions; the supply and fitting of kitchens, bathrooms and built-in wardrobes; fitting of windows; plumbing, tiling, rewiring and plastering. Work subject to VAT at 23% (such as architect’s fees) is not covered. Neither are items such as furniture, white goods or carpets.

 

The work must be carried out and paid for between 25 October 2013 and 31 December 2015. Qualifying work between 25 October 2013 and 31 December 2013 will be treated as if it was carried out and paid for in 2014. In general, the tax credit will be payable over the 2 years following the year in which the work is carried out and paid for. If you are a PAYE taxpayer, the amount of the allowable credit will be included in your annual Tax Credit Certificates. If you are a self-assessment taxpayer, it will be incorporated into your tax assessment.

Further information is available on revenue.ie and from the Citizens Information Centre below.

 

Service which provides a free and confidential service to the public.

Bray Citizens Information Centre 3/ 4 The Boulevard, Quinsboro Road  

Tel:  0761 07 6780

Arklow Citizens Information Centre 73 Lower Main Street 

Tel: 0761 07 6750

Wicklow Citizens Information Centre 9/10 Lower Mall  Tel: 0761 07 6840

Baltinglass Tel: 086 048 1880          Blessington Tel: 086 048 1881

Glendalough Tel: 0404 45611          Carnew Tel: 053 94 26555

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

 


Know Your Rights C: Opening a bank account

December 2013

Question

I have recently moved to Ireland. However, I don’t have any utility bills yet and I want to open a bank account.  How can I satisfy the bank as to my identity?

 

Answer

 

Before you open an account with a financial institution, they have to establish your identity and verify your address. This requirement is set down in anti-money laundering legislation. Financial institutions include banks, building societies and credit unions.

 

You can prove your identity with one of the following:

  • A valid passport or current Irish driving licence
  • A National Age Card (issued by An Garda Síochána)
  • An identification form with a photograph signed by a member of An Garda Síochána
  • Documents issued by government departments showing your name, for example, a Public Services Card

 

You can provide evidence of your address with one of the following (which must show your address):

  • A current utility bill (such as a gas, electricity or telephone or mobile phone bill)
  • A current car or home insurance policy
  • A document issued by a government department
  • A certificate of tax credits  issued by the Revenue Commissioners
  • A current balancing statement (‘ Form P21’)  or a C2 certificate from the Revenue Commissioners
  • A social insurance document

 

Note that you cannot use the same document to prove your identity and your address. Alternatively, you can provide a letter from your employer or licensed employment agency stating that you have recently arrived in Ireland and have started work but cannot yet provide evidence of your Irish address (you will have to provide evidence of your address at a later date). If you open an account that pays interest on your money, you also need to supply your PPS (Personal Public Service) number. If you do not have a PPS number, you can contact your local social welfare office for information on how to apply for one.

 

Further information is available from the Citizens Information Centre below.

 

Service which provides a free and confidential service to the public.

Bray Citizens Information Centre 3/ 4 The Boulevard, Quinsboro Road  

Tel:  0761 07 6780

Arklow Citizens Information Centre 73 Lower Main Street 

Tel: 0761 07 6750

Wicklow Citizens Information Centre 9/10 Lower Mall  Tel: 0761 07 6840

Baltinglass Tel: 086 048 1880          Blessington Tel: 086 048 1881

Glendalough Tel: 0404 45611          Carnew Tel: 053 94 26555

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


Know Your Rights D: PRSI on unearned income

December 2013

Question

I understand that ‘unearned income’ such as rents, investments, dividends and interest on deposits will be liable for PRSI from 2014. I am employed and also have a small income from interest on savings. Will I have to pay PRSI on this?

Answer

It depends on how much income you get from your savings and on your age. People under 16 and over 66 remain exempt from PRSI and are not liable for the new charge.

 

You have to pay PRSI on the interest on your savings if you are what Revenue considers a ‘chargeable person’. Employees and occupational pensioners (under 66) with additional unearned income of over €3,174 are considered ‘chargeable persons’ and are liable for the new 4% PRSI charge. They will pay the charge under Revenue’s self-assessment system (Pay and File).

 

You are not a ‘chargeable person’ and you do not have to pay PRSI if your additional income from non-PAYE sources is less than €3,174 and is taxed under the PAYE system. Generally such income is taxed by reducing a person’s tax credits to account for any tax payable.

 

Deposit Interest Retention Tax (DIRT) is a final liability for income tax purposes. This means that if DIRT has been paid on your deposit interest you are not liable to pay further tax on this income. However if you are a chargeable person PRSI is payable on such deposit interest.

 

If you are liable for PRSI on your additional unearned income you will pay PRSI at Class K. This class does not entitle you to any social insurance benefits. People whose only income is unearned income will continue to pay Class S PRSI on this income as before and are entitled to some social insurance benefits.

 

 

Further information is available on welfare.ie and from the Citizens Information Centre below.

 

Service which provides a free and confidential service to the public.

Bray Citizens Information Centre 3/ 4 The Boulevard, Quinsboro Road  

Tel:  0761 07 6780

Arklow Citizens Information Centre 73 Lower Main Street 

Tel: 0761 07 6750

Wicklow Citizens Information Centre 9/10 Lower Mall  Tel: 0761 07 6840

Baltinglass Tel: 086 048 1880          Blessington Tel: 086 048 1881

Glendalough Tel: 0404 45611          Carnew Tel: 053 94 26555

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

 

 

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