Homeowners from the Celtic tiger era know the harsh reality of paying the dreaded management fee each year. It’s become a bitter pill to swallow, with many feeling that they don’t get much in return – except empty wallets! So is there any respite? Well, there is something – tax relief on bin charges.
Tax relief can be claimed on bin charges and tags paid on an annual basis. Now the relief has been abolished since 2011 but all is not lost as claims can be made for prior years as far back as 2008. The relief allows you to claim 20% of the amount paid up to a maximum of €400 per year. Say you paid €400 for bin charges for the last 4 tax years; you could be entitled to a refund of €80 per year giving you a total refund of €320. So it’s definitely worthwhile making a claim.
The cost of your annual bin charge will be included in your annual management fee. Most management companies do not provide a breakdown of the costs included so you will have to contact them and ask for a receipt showing the amounts paid before making a claim.
Unfortunately, there is no tax relief for the other aspects of management fees such as maintenance and insurance but a tax refund on bin charges offers some relief, at least.
Related Article: Income Tax Reliefs and Exemptions