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Tax Credits
Updated Dec 2025

Common Mistakes When Claiming Tax Credits Ireland 2025

Common errors: Not updating after life changes (marriage, children), claiming wrong years, forgetting to claim for family members, missing medical receipts, not claiming flat rate expenses. These mistakes cost hundreds annually.

14 November 2025
4 min read

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Tax credits are your first line of defence against overpaying tax. In Ireland, most PAYE workers are entitled to at least €4,000 in annual credits—but many people either don't claim what they're due or make mistakes that cost them money.

Our specialists have reviewed thousands of tax records and consistently find the same errors. Here are the most common mistakes people make with tax credits—and how to avoid them.

📊 Key Tax Credits 2025

  • Personal Tax Credit: €2,000
  • Employee Tax Credit: €2,000
  • Home Carer Credit: €1,950
  • Single Person Child Carer: €1,900

Mistake #1: Not Claiming Additional Credits

Most PAYE workers automatically get the Personal Tax Credit (€2,000) and Employee Tax Credit (€2,000). But many don't realise there are additional credits they might qualify for:

  • Home Carer Credit (€1,950): For married couples where one stays home to care for children or other dependents
  • Single Person Child Carer Credit (€1,900): For single parents who are the primary carer
  • Incapacitated Child Credit (€3,300): For parents of children with permanent incapacity
  • Age Tax Credit (€305): If you're 65 or over

These credits don't apply automatically—you need to claim them. Many people miss out for years simply because they didn't know they were eligible.

Mistake #2: Wrong Allocation Between Spouses

For married couples and civil partners, tax credits and rate bands can be transferred between spouses to minimise your combined tax bill. Many couples have suboptimal allocations—one person paying more tax than necessary while the other's credits go unused.

Our specialists review your situation and advise on the most tax-efficient allocation for your family.

Mistake #3: Not Claiming the Rent Credit

The rent tax credit provides up to €1,000 per year for renters. It's a relatively new credit and can be backdated—yet many eligible renters haven't claimed it. If you're renting privately in Ireland, this could be worth thousands over multiple years.

Mistake #4: Not Reviewing After Life Changes

Your tax credit entitlements change when your circumstances change. Common life events that should trigger a review:

  • Getting married: Access to married person's credits and rate bands
  • Having a child: May qualify for Home Carer or SPCCC
  • Separation/divorce: Credits need to be reallocated
  • Starting to rent: Rent tax credit eligibility
  • Turning 65: Age credit becomes available

💡 Real Example

Mary became a single parent in 2022 but didn't know about the SPCCC. When we reviewed her situation in 2025, we claimed three years of the €1,900 credit plus the increased rate band—her refund was over €6,000.

Mistake #5: Forgetting Tax Relief on Expenses

Beyond tax credits, there are reliefs on various expenses that reduce your tax bill:

Mistake #6: Not Going Back Four Years

You can claim missed credits and reliefs for up to four years. Many people only think about the current year, leaving significant refunds unclaimed. In 2025, we can review and claim for 2021, 2022, 2023, and 2024.

Four years of missed rent credit alone could be worth €4,000. Combined with other reliefs, the total can be substantial.

How We Help

Our tax specialists review your complete situation to find every credit and relief you're entitled to:

  • Full four-year review: We examine your entire tax history
  • All credits checked: We know every credit available and which ones apply to you
  • All reliefs included: Medical, work expenses, rent, and more
  • No risk: If we don't find you a refund, you pay nothing

The average refund our clients receive is €1,080. Learn more about how our process works.

Are You Missing Tax Credits?

Our experts will review your records and find every credit you're entitled to.

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No refund, no fee • Average refund €1,080 • TAIN: 77632V

Frequently Asked Questions

How do I know what credits I'm currently getting?

Your Tax Credit Certificate shows your current credits. However, it won't tell you what you're missing. Our review identifies gaps between what you're getting and what you're entitled to.

Can both spouses claim the same credit?

Some credits can be shared or transferred, others cannot. For example, the Home Carer Credit can only be claimed by one spouse. Our team ensures your credits are optimally allocated.

Will claiming extra credits affect my current tax?

Claiming additional credits you're entitled to reduces your tax liability—that's the point! For past years, you receive a refund. For the current year, your take-home pay increases.

How quickly can I get a refund?

Once we submit your claim, Revenue typically processes refunds within 5-10 working days. The money is paid directly to your bank account.

Filed under:Tax Credits

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