Simple Ideas to Minimise Your Tax Liability

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Here are some simple ideas to minimize your tax bill.

• Cycle to work scheme. This tax relief is available to employees who cycle to and from work. It operates by the employer purchasing bicycles and bicycle equipment for the employees and then the employee reimburses the employer through a deduction from salary for up to 12 months.

• Rent-a-room. You can claim tax relief if you rent a room in your home. You must live in your home for one year to avail of this tax relief. You don’t have to own the property; you could be a tenant and sub-let to someone else.  The relief does not apply if the room is let as an office.

• From 1 January 2022, you can give employees up to two small benefits, tax free, each year of up to €1000. These benefits must not be in cash and the combined value of the two benefits cannot exceed €1,000. If a single benefit exceeds €1,000 in value, the full value of that benefit is subject to tax. Where two benefits are provided, the combined value of those benefits cannot exceed €1,000.

• Pension Contributions Income Tax relief is available against earnings from your employment for your pension contributions. Click here for full details.

To ensure you are using all tax reliefs let OSK Tax Advisers know of any changes to your personal circumstances so we can adjust your tax credits and tax reliefs accordingly.

 

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