Navigating your taxes: Four simple strategies to maximise your annual savings

Sophie Collins

The thoughts of having to navigate the Revenue website…

Navigating tax obligations can be a daunting task, but with careful planning it is possible to minimise your tax bill and maximise your savings.

Whether you’re actively trying to learn more about the taxes you pay and refunds you’re owed… or prefer to turn a blind eye, Financial advisor Nick Charalambous has some advice.

The Managing Director of Alpha Wealth, promises that following these four practical strategies will help Irish workers pay less tax and make sure we’re making the most of our money.

1. Maximise Your Pension Contributions

Charalambous emphasises the importance of leveraging pension contributions to reduce your tax liability.

“By being savvy with your pension contributions, you can get a significant amount back from the taxman,” he advises.

For instance, contributing €60 extra to your pension, if you earn over €42,000 annually, translates to an uplift of €100, thanks to tax relief.

This represents a 66% boost upfront, with the added benefit of tax-free growth within the pension fund.

2. Employment Investment Incentive Scheme (EIIS)

Another avenue for tax savings is through the Employment Investment Incentive Scheme (EIIS) offered by the government.

“You can get up to 50 per cent tax back over four to five years by investing in one of seventy or so Irish companies,” explains Charalambous.

This scheme caters to a range of companies, from established firms to new startups, making it an attractive option for investors looking to diversify while enjoying tax benefits.

3. Utilise Gift Allowances for Your Children

Taking advantage of the Gift Allowance Scheme can significantly reduce your overall tax burden.

“The tax man will allow you to ‘gift’ your kids up to €3,000 per year per parent with no tax implications whatsoever,” says Charalambous.

Strategically passing on funds over time can minimise tax exposure, making it a simple and effective tax planning tool.

4. Claim Expenses

Familiarising yourself with the Revenue Online System (ROS) allows you to claim various expenses, such as medical expenses, rent relief, and working from home costs.

“It is really simple and allows you to go back up to four years,” Charalambous highlights.

By utilising this system, you can potentially claim significant tax deductions with just a few clicks, hassle-free.

For personalised financial guidance on tax savings, pensions, investments, and more, individuals can schedule a financial review with Alpha Wealth at www.alphawealth.ie.