Relief is granted in each tax year in respect of service charges paid in the previous tax year
Tax relief is available for individuals who incur service charges paid to:
- Local authorities for the provision of domestic refuse collection or disposal, domestic water supply or domestic sewage disposal.
- Group water schemes for domestic water supply
- Independent contractors for domestic refuse disposal or collection
An individual can claim a tax credit in respect of such charges paid in full and on time in the previous tax year. The tax credit is calculated as 20% of the actual charges paid in the previous tax year or 20% of €400, whichever is the lesser amount. PAYE taxpayers will have their tax credits adjusted to incorporate the relief. Self-employed individuals should include the amount paid in their year end tax return to claim relief.