Tax reliefs going unclaimed

HEALTHCARE WORKERS are losing out on millions of euro of potential tax reliefs, according to financial advisers.

Nurses, doctors and other health professionals all qualify for tax relief for expenses related to their work, yet many fail to do so because they are either not aware of them or do not bother to claim, the Irish Taxation Institute has said.

The institute, which represents 6,000 tax advisers and accountants nationally, has designated this week as tax week to highlight the role tax advisers can play in ensuring that workers maximise their tax reliefs.

By their very nature, it is hard to quantify the number of people who do not take up all their tax reliefs, but the fact that 50 per cent of PAYE taxpayers don't claim all their medical expenses against tax, gives an idea of the scale involved.

The Revenue Commissioners are now involved in an investigation into how many health workers are not claiming their full allowance following a recommendation by the institute last year.

Irish Taxation Institute senior tax manager Una Maguire said the key issue for those working in the health service was that the reliefs they can claim are flat-rate expenses that should come off their tax bill every month.

"When you receive a tax credit certificate in January, make sure that the flat-rate tax deduction is included. It is no different from the PAYE tax credit. We would encourage people to go through some personal administration. It is worth the effort," she said.

A number of flat-rate tax deductions are granted to various types of healthcare professionals to reduce the amount of tax they pay. In the case of PAYE employees, these are coded into your tax credit certificate and therefore granted before the money hits your bank account - that is provided it is coded into your tax certificate.

The institute recommends that, if you work in healthcare, it is worth checking the certificate you received from Revenue in early 2008 and making sure the tax deductions that relate to your profession are included.

Nurses can claim tax relief of €733 if they are obliged to supply and launder their own uniforms; nursing assistants can claim €526. Similar relief is available to occupational therapists, physiotherapists, radiographers and domestic staff.

Doctors can qualify for a flat- rate deduction of €695 to cover the maintenance of white coats and medical instruments and their subscription to the Irish Medical Council.