Tax Relief for Service Charges - IT27
Introduction
Income tax relief is available for individuals who pay service charges to local authorities and other independent contractors. Relief is given for service charges paid in full and on time in the previous calendar year.
From 1 January 2012 tax relief will no longer be available for service charges paid. The abolition of this relief was announced by the Minister for Finance in his 2010 Budget Speech on 9 December 2009.
Service Charges which qualify for relief
All service charges paid to:
- Local authorities for the provision of domestic water supply, domestic refuse collection or disposal, or domestic sewage disposal
- Group water schemes for domestic water supply
- Independent contractors for domestic refuse collection or disposal.
Individuals who qualify for relief
- An individual (or their spouse or civil partner, if taxed jointly) who is liable for and pays the service charge on a premises will qualify for relief or
- An individual (e.g. a son or daughter living with an elderly parent) who pays
the service charge and lives on a full time basis in that premises may qualify
for the relief. In such a case the
claim form (PDF, 257KB) should be submitted with the
disclaimer section completed by the liable individual (e.g. the elderly parent).
Amount of tax relief
Tax relief is given at the standard rate of tax for any service charges paid (including the purchase of "Bin Tags") in the previous year. For example if an individual paid service charges of €240 in 2010 they will be entitled to a tax credit of €48 in 2011 (i.e. €240 x 20% = €48).
The limits set out below will apply to the amount of relief that can be claimed in respect of the following periods:
Tax year 2012 and subsequent years
From 1 January 2012 tax relief will no longer be available for service charges paid.
Tax years 2007 to 2011 (for amounts paid in 2006 to 2010)
- The total tax relief that can be claimed for both fixed charge payments made (including lift charges and pay by weight) and bin tags purchased, from 2006 to 2010 are subject to an overall limit of €400
| Service charges paid in the years | Allowed in the year | Amount of relief |
|---|---|---|
| 2009 | 2010 | €400 |
| 2010 | 2011 | €400 |
Conditions for relief in respect of Local Authority service charges
- All service charges on the premises to which the service charge relates must be paid in full and on time for the previous calendar year and
- Arrears from earlier years must be cleared in accordance with local authority conditions.
Conditions in respect of Non Local Authority service charges
The service charge(s) in question must be paid in full and on time and any service charges due to a local authority must also be paid in accordance with the above conditions. For example, if an individual wishes to claim for a specific annual payment to an independent contractor for domestic refuse collection, any charges due for other domestic services provided by the local authority must be paid in accordance with the conditions outlined in the previous paragraph.
How to claim tax relief
This relief can be claimed in a number of different ways.
- Internet - You can claim over the Internet using our PAYE Anytime service. For further details visit www.revenue.ie
- Text
Message - Text CREDIT PPS-number PIN BIN your
bin charge amount to 51829
(The PIN requested is the number used to access PAYE Anytime).
For example, if your PPS number is 1234567A, your PIN is 654321 and you paid €200 for bin charges, to claim the tax credit simply text:
CREDIT 1234567A 654321 BIN 200 to 51829 - Telephone - Contact your Regional PAYE LoCall Service whose number is listed below
- Claim Form (PDF, 257KB) - Complete and submit the claim form attached to this
leaflet to your Local Revenue office.
- 4-year time limit - A claim for tax relief must be made within 4 years after the end of the tax tear to which the claim relates.
Further Information
This leaflet is for general information only. You can get further information on this website or by phoning your Regional Revenue LoCall service whose number is listed below.
| Region | Area Covered | Telephone No. |
|---|---|---|
| Border Midlands West Region | Cavan, Donegal, Galway, Leitrim, Longford, Louth, Mayo, Monaghan, Offaly, Roscommon, Sligo, Westmeath | 1890 777 425 |
| Dublin Region | Dublin (City and County) | 1890 333 425 |
| East & South East Region | Carlow, Kildare, Kilkenny, Laois, Meath, Tipperary, Waterford, Wexford, Wicklow | 1890 444 425 |
| South West Region | Clare, Cork, Kerry, Limerick | 1890 222 425 |
Please note that the rates charged for the use of the 1890 (LoCall) numbers may vary among different service providers. If calling from outside the Republic of Ireland phone +353 1 702 3011.
Accessibility - If you are a person with a disability and require this leaflet in an alternative format the Revenue Access Officer can be contacted at accessofficer@revenue.ie
PDF Version of IT27 -
Tax Relief for Service Charges (PDF, 484KB)
July 2011
This leaflet is intended to describe the subject in general terms. As such, it does not attempt to cover every issue which may arise in relation to the subject. It does not purport to be a legal interpretation of the statutory provisions and consequently, responsibility cannot be accepted for any liability incurred or loss suffered as a result of relying on any matter published herein.