Can i claim tax back on rent?

fret_wimp2

Im a paye worker and have been for 7 or so years. Each year on the PAYE online tool i enter in the rent i paid for the previous year to get refunded some tax.

I thought everyone did this but just got told by a buddy that he does not do it and that im not entitled to do this.

Im pretty sure i am, but can someone confirm this?

Raladic

http://www.revenue.ie/en/tax/it/credits/rent-credit.html

Rent Tax Credit
Who can Claim?

An individual, paying for private rented accommodation used as a sole or main residence. This includes rent paid for flats, apartments or houses.

If this applies to you then you can clain tax credit on it.

Jesus Shaves

You can even claim it if you live with the parents!

snappieT

They've begun to phase it out, and if you weren't paying rent before December 2010, you can't claim it at all.

barneystinson

darokane wrote: »

You can even claim it if you live with the parents!

They closed that loophole a few years ago.

fret_wimp2

thanks for the quick responses guys! appreciate it!

fret_wimp2

my buddy has come back to me and said that after you get your tax back on the first year, your credits are automatically adjusted going forward.

My arguement is what if i move houses and am paying double rent, or half the rent. how would the government know to alter my credits.

Is my logic correct?

relax carry on

fret_wimp2 wrote: »

my buddy has come back to me and said that after you get your tax back on the first year, your credits are automatically adjusted going forward.

My arguement is what if i move houses and am paying double rent, or half the rent. how would the government know to alter my credits.

Is my logic correct?

Your friend is correct in that it automatically carries forward. However you are also correct as when you move you need to update your record with Revenue for address if nothing else. You are required to notify Revenue of any changes in your circumstances which may alter your credits/reliefs and can be requested to provide proof of rent paid.

There are maximums for each year that most people usually meet in order to claim the max relief which is why claiming year after year usually leads to no further refunds after the first year.
For example in 2008 it was 2000 euro at 20% for the year. If you paid 5000 in 2008, the max you could get was 400. If you paid 3000 in 2009, the max you could get was still 400.

Jesus Shaves

barneystinson wrote: »

They closed that loophole a few years ago.

ahhhh i see, that is how i started off claiming the rent relief tax credits

fret_wimp2

relax carry on wrote: »

Your friend is correct in that it automatically carries forward. However you are also correct as when you move you need to update your record with Revenue for address if nothing else. You are required to notify Revenue of any changes in your circumstances which may alter your credits/reliefs and can be requested to provide proof of rent paid.

There are maximums for each year that most people usually meet in order to claim the max relief which is why claiming year after year usually leads to no further refunds after the first year.
For example in 2008 it was 2000 euro at 20% for the year. If you paid 5000 in 2008, the max you could get was 400. If you paid 3000 in 2009, the max you could get was still 400.

Ok cool. so does this mean that i am incorrect to enter my rent into the PAYE Online tool each year? ( sorry but i really need these things spelled out. im quite clueless when it comes to this type of thing)

relax carry on

Ok cool. so does this mean that i am incorrect to enter my rent into the PAYE Online tool each year? ( sorry but i really need these things spelled out. im quite clueless when it comes to this type of thing)[/Quote]

No bother. If you login to your online account and choose any year, what is in Green is what you have already claimed, what is in blue you might be able to claim and what's in grey you cannot claim. So now if you look at the 2012 tab, the rent tax credit should be highlighted in Green, meaning it had already been added to 2012s credits which reduces the amount of tax you pay weekly.
So if nothing changes there's really no need to update anything but if your amount of rent paid or address changes, then its always good to update your details even if does not generate a refund for you.