Permanent Health contributions

Permanent Health (also known as Income protection ) are insurance payments to have your income continue if you are absent due to illness or injury

If you take part in such a scheme you may claim tax relief under certain conditions.

To qualify for tax relief, the scheme you take part in must be Revenue approved and must not exceed 10% of your total income.

You will receive tax relief based on the payments that you paid in the year that you are claiming for. The relief is allowed by either:

your employer, who will deduct the payments from your gross pay before calculating Pay As You Earn (PAYE). This is known as net pay arrangement
Revenue, who will adjust your standard rate cut-off point (SRCOP) and tax credits.

Also if paid by your employer as a benefit in kind, it is not subject to income tax subject to max of 10% of total income.

For self employed persons, you can claim same in your Form 11 income tax return each year.

Any queries please do not hesitate to contact me on 091 763817 or email me at oliver@taxreturnhelp.ie