In one of our recent newsletters, Home Carer’s tax credits, we got a huge response from many people who qualified for this €1,000 per annum tax credit but were not aware that it existed.
This got me thinking, what other tax reliefs might people not be aware?
Personal and Family Protection
Probably the most widely known tax relief, when it comes to financial planning, is pensions. But did you know that the cost of Life cover and Income Protection cover can also attract tax relief at your marginal rate of income tax?
This type of cover is very important to protect the current and future financial lifestyle of you and your family. In our experience, however, many people have set this protection up inefficiently (from a tax point of view) or shied away from them due to the cost.
- For self- employed or those in non-pensionable employment the life cover is called Personal Pension Term Assurance and the Income Protection is known as Personal Income Protection. Tax relief is given at your marginal rate of income tax on the premiums
- For business owners/ contractors with limited companies it is known as Executive Term Assurance and Executive Income Protection. Your company can meet the cost of this protection reducing your corporation tax bill. Unlike Health Insurance there is no BIK payable by you