“When money flows into women’s hands, everything changes.” The transformational potential of wealth in a woman’s hand stands unmatched. It optimises the existing professional and personal baseline. It is because the journey is not about wealth accumulation. It is regarding the best resource utilisation. Every woman entrepreneur or worker must meet certain tax liabilities.

The Office of the Revenue Commissioners provides a legal apparatus. It lists taxation regimes according to earnings or income. It is the tax regulating authority that monitors taxation and rebates. Every person paying tax is eligible for some rebates. These may boost the financial bottom line. It helps achieve dreams as a commoner or a working class. The blog discusses how tax refunds boost women’s financial assertiveness and empower them.

What are tax rebates?

Tax rebates are the amount that one can claim if overpaid on taxes. It could be the balance that the authority owes to you. It directly sends the amount to your respective account.  Familiarising yourself with the tax rebates maximises the returns. It reduces your next year’s tax payments. For example, entering a higher income bracket means low taxes. You can leverage more amounts as tax rebates. However, you will be paying more tax then.

How does seeking a tax refund empower women?

A working woman maintains the best of both worlds. She must balance personal or professional platforms well. According to the Central Statistics Office, “A woman earns €37282 on average in Ireland.”  Individuals earning €18750 or less don’t pay tax.  However, earnings beyond that are liable for taxes.

Any income you receive as an employee in Ireland is taxed as per the standard rate. It is known as the standard cut-off point. You pay 20% tax on income up to €42,000 in 2024.  Individuals earning above that pay 40% tax. This means that if you earn €55000, you will pay € 22,000 in tax. So, how would you benefit from such a strict taxation regime? A tax refund may help here.  Let’s understand the best ways tax refund may empower you financially:

1)     Claim tax refund on retirement savings

Maximising your contributions to individual retirement accounts boosts savings. You may be eligible for a high rebate on taxes. Moreover, individuals can invest up to 20000 in ISA without any tax liability. You don’t need to pay tax even on interest, dividends, or capital gains.

Explore different types of retirement accounts suitable for goals. You can invest in individual savings accounts, Cash ISA, stocks, and shares. You can also check the validity of Lifetime ISA. It grants you the freedom to leverage some money until death.

 Afterwards, the remaining gets transferred to the nominee. It helps you achieve your retirement goals without worries.  You can even get loans against the pension. You may need immediate cash for emergencies.

Financing that without regular income after retirement gets challenging. However, you can get loans without a guarantor in the Ireland marketplace. You may finance the need by providing your retirement earnings as proof.  This facility empowers women to finance small needs without dependency. You can control the finances and regulate payments.

2)     Claim refund from previous job

You may be eligible for a tax rebate on switching jobs. If you overpaid your tax there, the company must release it. It is alongside the severance pay.  However, individuals receiving Jobseeker’s Allowance may not get a rebate. In that case, the authority provides the refund by the end of the tax year.  However, if unemployed and looking for a new job, claim one.

You must not have any Jobseekers allowance. Reveal the proof like- the job letter and your confirmation to the letter. It may help get the dues back. It helps one finance critical needs that one refrains from in unemployment. It creates financial security and prevents one from losing a home or assets.

3)     Get a refund on annuities

While most women prefer transferring their hard-earned money, some seek security. It could be because of the rift in the relationship. It leads to constant worries about losing the investments. However, you can protect this with annuities.  One pays a fixed payment until a specific period towards annuities.  

Individuals with tax-free personal allowance may claim tax rebates here. However, you must file an R40 form to get a refund on overpayments. It takes around 4 years to get back what you owe.  For pension-based annuities, get a P800 letter from HMRC. If confused, contact the authority to know the payments and the process. With this, you can safeguard your investments against your beneficiaries. If you want, you can even change the beneficiary’s name.

4)     Get a rebate as an overseas earner

Most Ireland-based businesses earning abroad face issues. You are still entitled to pay the tax dues in Ireland. It is for individuals living in Ireland with different citizenship. However, you still pay tax on rent, investments, wages, pensions, etc. Individuals with personal allowances may seek tax relief. You may be eligible for tax rebates. Alternatively, you must pay the tax dues.  Countering instant needs can be challenging for you.

Get verified loans for bad credit with an instant approval facility. You can use the loan to finance small business requirements. It could also help you with the taxation liabilities.   

You get the money instantly in your account. It helps finance the needs without depending on rebates or tax relaxation. Alternatively, explore the best aspects of claiming a tax rebate under a pension allowance.

5)     Claim official expenses as self-employed

Women freelancers acknowledge challenges in meeting business requirements. They must pay the self-assessment yearly tax to continue. However, most business owners struggle to pay the dues. They generally transfer it to the next year.

Not repaying the taxes is instead harmful. You may lose the tax rebates that you legally qualify for. You can instead deduct and claim a rebate for office-related supplies. The authority allows one to deduct the expenses incurred on professional stuff.

 It automatically reduces the financial burden. However, you must keep the receipts intact. It should list the purchases and the amount. Accordingly, you can claim the amount from the authority. It may help you meet other business objectives without worries. It also prevents you from taking unnecessary financial assistance.

Bottom line

These are some specific ways in which tax rebates empower women. It helps them utilise finances according to their life goals. Identify whether you can claim tax rebates using these strategies. If yes, maximise it to the fullest. Acknowledge the amount to get and approach accordingly. Utilise savings like retirement and self-employed rebates well. It should meet the specific purpose.