AFTER THE FESTIVE season, some people may be in need of a financial boost, and claiming back the tax you’re owed is one good way to do so.

It’s something many of us don’t do, but can be well worthwhile – And January is as good a time as any to start, with the latest tax year having just ended.

First things first: if you’re an employee, you should file a tax return.

Marian Ryan, consumer tax manager with Taxback.com, recently told The Journal’s Explainer podcast that around 500,000 people leave tax refunds sitting on the table.

“If there is a refund there, Revenue is more than willing to pay it out, but the problem is it’s on us to go and get that refund and file that tax return,” said Ryan.

She said that there is a “huge lack of awareness” to what people are entitled.

“We really should get into the mindset of, ‘it’s January, the year is done and I can go and get my refund now’.”

Most employees pay tax through the PAYE (Pay As You Earn) system.

This means that your employer deducts the tax you owe directly from your wages and pays this tax directly to Revenue but it also means many employees have never filled out an income tax return.

“There is no obligation for us to file a tax return, but everyone can and it’s quite straightforward,” said Ryan.

This can be done on Revenue.ie or via a MyGov account and while Ryan said it can be “scary” on the first occasion, she also described the process as “initiative”.

You are entitled to claim tax back for the previous four years. 

As a result, Ryan encouraged people to think about what expenses they have had over the past four years.

“Doctor’s bills, prescriptions, working from home, am I renting or paying a mortgage – the vast majority of major life events always have a taxable impact.”

Ryan said medical expenses are among the most common payments that aren’t claimed.

“It’s any medical expense you have that is either prescribed by a doctor or carried out by medical professional, like a doctor or physio.

“You can get 20% of that back and it all adds up, so even if it’s only around €15 a month, it all adds up over the course of a year,” said Ryan.

She noted that gluten free and sugar free food stuffs can be claimed back for people who are diagnosed with celiac disease or who are diabetic.

Non-routine dental expenses can also be claimed.

Ryan noted that nursing home fees can be claimed back at a rate of 40%.

She also encouraged people to save their receipts, particularly if they are very high expenses, and these can be uploaded to the “Receipt Tracker”.

Meanwhile, Ryan explained that there are over 180 occupations that benefit from a “Flat Rate Expense”.

This allows certain employees to claim deductions for some employment related expenses, which as tools and work uniforms.

“If you are a shop assistant working in retail, or you work in a garage, you will get a Flat Rate Expense of €121 per year,” said Ryan.

For others, this can reach up to €2,500, and Ryan said this is the “easiest payment to get”.

“All you need to do select the industry you are working in that’s it done. You don’t need to actually be paying for your uniform or send in any receipts for tools.”

Ryan noted that while teachers are best at claiming the Flat Rate Expense, those in the building trade are the worst.

For anyone working from home – since January 2022, remote workers can reclaim 30% of their electricity, heating or broadband bills through an Income Tax return.

The relief is apportioned on the number of days an employee spent working from home over the year and any remote working reimbursements paid out by your employer is deducted. If the cost is shared between two or more people, it can be apportioned based on the amount each paid towards the energy bills.

The formula that multiplies utility bills by the number of remote working days. This figure is divided by 365 (or by 366 in a leap year) and then multiplied by 30% (0.3). Any remote working allowance reimbursed by your employer is deducted.

Renters should look at claiming the Rent Tax Credit, which is worth €1,000 per person. 

Ryan said that some renters haven’t claimed back their Rent Tax Credit because they don’t want to have to approach their landlord to obtain their Residential Tenancies Board (RTB) number – but actually, Ryan said, renter can go directly to the RTB to obtain the number, so she advises renters not to let that be a barrier to availing of the tax credit.

You can listen back to all of the advice on the episode of The Explainer.

Additional reporting by Lauren Boland