Tax Allowances

 

You may get a tax refund for specific expenses for items you need for work, like laundry expenses if you wear a uniform for your job. The value of a tax allowance will depend on whether it’s allowed at the highest rate of income tax that you pay or is restricted to the standard 20% rate.

 

For example:

 

Take a claim of €100. If you pay tax at 40% and you can claim it at the highest rate of tax you pay, it will reduce your tax by €40 (€100 x 40%).

If the highest rate of tax you pay is 20% or the relief is restricted to the standard rate, then the claim of €100 will reduce your tax by €20 (€100 x 20%).

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