How to claim Medical Expenses Relief if taxable income is 0.

mrcheez

I'm a PAYE worker, but I'm also registered as a sole trader for when I work as a contractor. As I didn't do contracting in 2013, my Form11 taxable income is €0.

Yet I have medical expenses in 2013 that qualify for the 20% relief.

If I enter these on the Form11 (for the sole-trader), the bottom-line calculations will still end up as €0, rather than +20% of the medical expenses.

Do I claim the 20% back as a refund? Or should I enter the medical expenses on PAYE Anytime instead??

2ndcoming

You need to include your PAYE income on the Form 11 anyway, the health expenses goes in the tax credits section and any relief due will be calculated against your PAYE tax paid.

Unless of course you have no tax paid, in which case no relief is due. 20% from nothing is still nothing.

mrcheez

2ndcoming wrote: »

Unless of course you have no tax paid, in which case no relief is due. 20% from nothing is still nothing.

ah ok, so it's not a "refund" per se, but 20% off tax due.

Was under the impression you got back 20% of the medical expenses regardless of tax paid.

mrcheez

On ROS they populate the PAYE details automatically on the Form11, but the medical expenses credit never appears to go toward the PAYE tax relief.

Kristopherus

You cannot get a refund if you pay zero tax, as 2ndcoming has explained above.

mrcheez

I pay tax on my PAYE

Citizenpain

PAYE Tax as well as USC & PRSI? You should get the refund against yoor PAYE Tax Paid

mrcheez

Yep full tax, USC/PRSI, the works.

I didn't appear to get a refund last year when I had a similar situation (I added the medical details to the Form11, but wasn't working as a contractor in 2012 either so only PAYE tax paid)

I assume the best thing will be to submit the details via PAYE Anytime instead and leave it out of the Form11.

smcgiff

mrcheez wrote: »

I'm a PAYE worker, but I'm also registered as a sole trader for when I work as a contractor. As I didn't do contracting in 2013, my Form11 taxable income is €0.

Yet I have medical expenses in 2013 that qualify for the 20% relief.

If I enter these on the Form11 (for the sole-trader), the bottom-line calculations will still end up as €0, rather than +20% of the medical expenses.

Do I claim the 20% back as a refund? Or should I enter the medical expenses on PAYE Anytime instead??

You need to enter your PAYE Gross income and the Income tax you paid, plus USC. You'll find them on your P60.

mrcheez

smcgiff wrote: »

You need to enter your PAYE Gross income and the Income tax you paid, plus USC. You'll find them on your P60.

These are prefilled on ROS.

smcgiff

Did you pay income tax on your PAYE income or is it below your tax credit level?

mrcheez

Just for clarity let me summarise...

I am registered as a sole trader (for contracting work). 0 contracting work done in 2013 so 0 tax, but I still need to fill in a Form11.

I am also a PAYE worker (main income for 2013). Full PAYE tax was paid (tax was above my credit level).

I have medical expenses for 2013 that I can claim tax relief on.

Do I put these in the Form11 or PAYE Anytime?
When I put the 2012 medical expenses into the Form11 last year I got nothing back ... same situation (Full PAYE, 0 contracting)



Please bear in mind I'm using ROS, so if you can refer to specific sections of the ROS interface it would be a great help, thanks!

barneystinson

mrcheez wrote: »

Just for clarity let me summarise...

I am registered as a sole trader (for contracting work). 0 contracting work done in 2013 so 0 tax, but I still need to fill in a Form11.

I am also a PAYE worker (main income for 2013). Full PAYE tax was paid (tax was above my credit level).

I have medical expenses for 2013 that I can claim tax relief on.

Do I put these in the Form11 or PAYE Anytime?
When I put the 2012 medical expenses into the Form11 last year I got nothing back ... same situation (Full PAYE, 0 contracting)



Please bear in mind I'm using ROS, so if you can refer to specific sections of the ROS interface it would be a great help, thanks!

Well you can't use PAYE anytime, that's for sure, because once you are registered for income tax ROS is your user interface.

If you fill in everything correctly, and have paid tax, then you will get a credit for health expenses paid. You must be filling in something wrong, or not hitting calculate, if you aren't getting it.

Sunny Dayz

Op you need to include your PAYE income, USC and PAYE deducted in the relevant boxes. I know ros prepopulate the form but they only disclose the info, the figures aren't actually input on the return.
Also as someone else said, you can't be registered for both PAYE anything and income tax self assessment

mrcheez

barneystinson wrote: »

Well you can't use PAYE anytime, that's for sure, because once you are registered for income tax ROS is your user interface.

Interesting because I have a login for both

Anyway I'll give it a shot and if not I can always claim the relief back at a later date

barneystinson

mrcheez wrote: »

Interesting because I have a login for both

Anyway I'll give it a shot and if not I can always claim the relief back at a later date

Have you tried to submit anything on PAYE anytime though, for a year that you're registered for self assessment..?

Plenty of people who were PAYE only for earlier years will still have access to PAYE anytime for those years, but not be able to use it for the subsequent years that they have a live IT registration.

mrcheez

Yep I can still use both. I can get to the PAYE Anytime by clicking on the "PAYE" tab when logged into ROS (and I can submit requests for tax credits etc through PAYE Anytime)

Anyway I found the details regarding the PAYE section on ROS and the medical relief values went through this time, so thanks all for the assistance.