Two mistakes to avoid when it comes to your tax return

If you do your own income tax return make sure you avoid the following pitfalls while making sure that you stay in the Revenue’s good books!

 

Often people mistakenly assume that Revenue will apply any tax credits that they are entitled to. Tax credits are not automatically applied and you must apply for them yourself through your tax return.

 

We find there are several tax credits people overlook. For example, the Home Carer Tax credit can save thousands in tax but people mistakenly believe it only applies to caring for unwell children. Other credits we often see under utilised are;

You can go back 4 years to claim unused credits so claiming all credits you are entitled to can amount to thousands back in tax.

 

 

 

There is a huge fear amongst those preparing their tax return that they will overclaim expenses against their income and end up in trouble with Revenue. This often leads to legitimate business expenses being omitted from the calculations resulting in a higher tax bill.

 

For example, if you use part of your home as an office you can claim expenses associated with that, for example, light and heat. if you use your personal car for essential business purposes, you can allow for the business expense. Other expenses you can claim tax back on include fixed assets, e.g. computers and office furniture.

 

 

On 18 May 2023 we are holding our first Tax Review Thursday in partnership with Make-A-Wish Ireland. In return for a €95 donation to Make-A-Wish Ireland you can sit down with an accountant to go through your tax together. Find out more here