Tax relief on Income Protection
Income protection premiums, up to certain limits, qualify for tax relief at your marginal rate.
If you are employed, the life assurance company will deduct tax and social insurance payments from your benefits in the same way that your employer would.
If you are self employed, it may be payable gross. It should be treated like trading income in your accounts.
How much tax relief could you claim on your premiums?
- You can claim tax relief on your premiums at your marginal rate of tax, up to a yearly limit of 10% of your total income.
How do you claim tax relief?
You will receive a statement showing the premiums you have paid each year from your insurance company.
To claim your tax relief you can either register for tax credits by using the PAYE Anytime system available through www.revenue.ie or send the income protection policy statement to the tax office directly.
If you are an employee, once you have registered, your payslip should show the relief that you have received.
If you are self-employed, the tax relief can be claimed when you file your end of year tax return.