Employers Tip May 2010 – Claim Tax Relief for Service Charges Paid

Relief is granted in each tax year in respect of service charges paid in the previous tax year

Tax relief is available for individuals who incur service charges paid to:

  • Local authorities for the provision of domestic refuse collection or disposal, domestic water supply or domestic sewage disposal.
  • Group water schemes for domestic water supply
  • Independent contractors for domestic refuse disposal or collection

An individual can claim a tax credit in respect of such charges paid in full and on time in the previous tax year. The tax credit is calculated as 20% of the actual charges paid in the previous tax year or 20% of €400, whichever is the lesser amount. PAYE taxpayers will have their tax credits adjusted to incorporate the relief. Self-employed individuals should include the amount paid in their year end tax return to claim relief.