Ways to save income tax

General topic discussion forum
Post Reply
SPKBhamidipati
Seasoned Member
Posts: 51
Joined: Sun Oct 28, 2018 3:00 pm
Antispam: No

Ways to save income tax

Post by SPKBhamidipati » Tue Jul 09, 2019 8:52 pm

Can someone suggest any ways to save income tax here in Ireland, like the ones in India (PF, ULIPs, mutual funds etc)?

balac_m
Seasoned Member
Posts: 385
Joined: Tue Jan 31, 2017 8:00 pm
Antispam: No

Re: Ways to save income tax

Post by balac_m » Wed Jul 10, 2019 8:21 am

How to lower the tax amount:

1. Make sure you are assessing your tax with the correct civil status. Most of the people are assessing their tax as single and they can only change it if they submit the spouse election form+ marriage certificate. This can be done only if the spouse is present in Ireland and having a PPS number.
2. Those married who are working here alone can claim non-resident aggregation relief at the end of the year.
3. If the spouse is not working or working in part-time, and minding a child, can claim the home carer tax credit of 1500 Euros.
4. Those who spent on hospital bills can claim a part of it.

Investment options without tax:

1. Opt for a pension plan and put some excess money on it. It will not be taxed. For example, if you choose to save €750 a month into your pension. That is a lot of money but if you consider income tax relief at 40% it could cost you just €450 from your take-home pay. The downside is, well! you know!
2. Invest in the post office state savings bonds, the interest rate is not great but it is not taxed. Some plans are giving 16% though. Get more information on https://www.statesavings.ie/our-products

SPKBhamidipati
Seasoned Member
Posts: 51
Joined: Sun Oct 28, 2018 3:00 pm
Antispam: No

Re: Ways to save income tax

Post by SPKBhamidipati » Wed Jul 10, 2019 8:15 pm

Thanks Balac_m. Seems not many ways to save tax, but to lose money :roll:

balac_m
Seasoned Member
Posts: 385
Joined: Tue Jan 31, 2017 8:00 pm
Antispam: No

Re: Ways to save income tax

Post by balac_m » Thu Jul 11, 2019 9:39 am

Unfortunately! It is because of the nature of the welfare state. There are a lot of benefits you are getting for the tax you are paying, even though not immediately. Actually, if you are a medium earner, you can get more from the state than what you are paying.

yellareddyyalluru
Seasoned Member
Posts: 144
Joined: Wed Oct 10, 2018 3:13 pm
Antispam: No

Re: Ways to save income tax

Post by yellareddyyalluru » Thu Jul 11, 2019 12:59 pm

balac_m wrote:
Wed Jul 10, 2019 8:21 am
How to lower the tax amount:

1. Make sure you are assessing your tax with the correct civil status. Most of the people are assessing their tax as single and they can only change it if they submit the spouse election form+ marriage certificate. This can be done only if the spouse is present in Ireland and having a PPS number.
2. Those married who are working here alone can claim non-resident aggregation relief at the end of the year.
3. If the spouse is not working or working in part-time, and minding a child, can claim the home carer tax credit of 1500 Euros.
4. Those who spent on hospital bills can claim a part of it.

Investment options without tax:

1. Opt for a pension plan and put some excess money on it. It will not be taxed. For example, if you choose to save €750 a month into your pension. That is a lot of money but if you consider income tax relief at 40% it could cost you just €450 from your take-home pay. The downside is, well! you know!
2. Invest in the post office state savings bonds, the interest rate is not great but it is not taxed. Some plans are giving 16% though. Get more information on https://www.statesavings.ie/our-products
Option 2 under investment options is not suggested. the return is very meager. Better to invest that money in pension funds. you get 67% return directly.

yellareddyyalluru
Seasoned Member
Posts: 144
Joined: Wed Oct 10, 2018 3:13 pm
Antispam: No

Re: Ways to save income tax

Post by yellareddyyalluru » Fri Jul 19, 2019 9:47 am

balac_m wrote:
Wed Jul 10, 2019 8:21 am
How to lower the tax amount:

1. Make sure you are assessing your tax with the correct civil status. Most of the people are assessing their tax as single and they can only change it if they submit the spouse election form+ marriage certificate. This can be done only if the spouse is present in Ireland and having a PPS number.
2. Those married who are working here alone can claim non-resident aggregation relief at the end of the year.
3. If the spouse is not working or working in part-time, and minding a child, can claim the home carer tax credit of 1500 Euros.
4. Those who spent on hospital bills can claim a part of it.

Investment options without tax:

1. Opt for a pension plan and put some excess money on it. It will not be taxed. For example, if you choose to save €750 a month into your pension. That is a lot of money but if you consider income tax relief at 40% it could cost you just €450 from your take-home pay. The downside is, well! you know!
2. Invest in the post office state savings bonds, the interest rate is not great but it is not taxed. Some plans are giving 16% though. Get more information on https://www.statesavings.ie/our-products
Hi Bala,

I am not able to find point 2 and point 3 on myaccount. are they still applicable? and where to file?

balac_m
Seasoned Member
Posts: 385
Joined: Tue Jan 31, 2017 8:00 pm
Antispam: No

Re: Ways to save income tax

Post by balac_m » Fri Jul 19, 2019 11:39 am

Are you married and living alone here? You need to contact the Revenue for the steps on how to claim the relief as it is a customised one based on your situation whether your spouse is working or not. You will be still assessed as single and you can get the difference amount back at the year-end. You cannot claim the home carer tax unless your family is here and your spouse is minding the kids.

BiraMKY
Posts: 3
Joined: Fri Aug 16, 2019 2:08 pm
Antispam: No

Re: Ways to save income tax

Post by BiraMKY » Fri Aug 16, 2019 2:20 pm

Use the umbrella at the moment. All good. Self-employed no good as not qualify for some the benefits. My Unbrella they give you almost 67-70% after the take out of tax, prsi etc. use for 4 years now. make the own company before that, always troubles with amount tax must pay and much big fees for ancountant. good luck.

pinkbluerain
Seasoned Member
Posts: 143
Joined: Mon Sep 03, 2012 11:31 am
Antispam: No

Re: Ways to save income tax

Post by pinkbluerain » Sun Aug 18, 2019 9:46 pm

And what are the different channels you can invest int. Like financial advisors etc.

Also how do you invest here in funds , any recommendations?

Thanks,

Den968
Posts: 2
Joined: Mon Aug 19, 2019 7:04 am
Antispam: No
Contact:

Re: Ways to save income tax

Post by Den968 » Mon Aug 19, 2019 8:20 am

Thanks for sharing these simple and easy ways.
https://tshirtplus.com.au

joe_joe
Seasoned Member
Posts: 225
Joined: Thu Nov 08, 2012 10:28 am
Antispam: No

Re: Ways to save income tax

Post by joe_joe » Mon Aug 19, 2019 10:22 am

pinkbluerain wrote:
Sun Aug 18, 2019 9:46 pm
And what are the different channels you can invest int. Like financial advisors etc.

Also how do you invest here in funds , any recommendations?

Thanks,


https://www.linkedin.com/in/josephritesh/
0873219098

Post Reply