Avoid Common Pitfalls in Your Income Tax Return: Tips from Our Expert, Gillian Reville

At Icon Accounting, we want to make sure our contractor clients are always ahead of the game when it comes to their accounting and tax requirements. That’s why we’ve invited our very own tax expert, Gillian Reville, to share her top tips on avoiding common mistakes when preparing your income tax return.

And the best part? For our contractors, completing your income tax return is part of our fully managed service — there’s no additional cost. We take care of it for you, so you can focus on your contracting work, secure in the knowledge that your tax affairs are in expert hands.

Gillian’s Key Tips for Avoiding Common Tax Return Mistakes

Navigating your income tax return can be tricky, especially if it’s your first year contracting or if your circumstances have changed. Here’s Gillian’s advice:

1. Medical Insurance: Know When to Claim

A common pitfall is incorrectly adding medical insurance to your Tax Credit Certificate (TCC):

• If your employer pays for your medical insurance as a benefit in kind, it should be added to your TCC.
• If you pay for it yourself, relief is given at source, so you don’t need to add it to your TCC.

2. Medical Expenses: Make Sure They Qualify 

Not all medical expenses are automatically eligible for tax relief. To qualify, expenses must be carried out, referred, or advised by a medical practitioner registered with the Medical Council of Ireland, depending on the category of expense.

• You can claim relief on the following if you are prescribed, referred or advised to by a practitioner - treatments like physiotherapy, chiropody/podiatry or osteopathy whereas treatment from a psychologist or psychotherapist must be carried out or referred by a practitioner. 
• Keep documentation to ensure claims are accepted and you don’t miss out on relief. 

3. Review Your Tax Credit Certificate (TCC) Every Year

Your TCC is the starting point for your tax return, and reviewing it at the start of each year is essential:

• Make sure all credits are added to your income tax checklist so you don’t miss any.
• Some credits, like flat rate expenses, may carry forward from previous years but might not apply to the current year. Remove these early to avoid creating a liability.

4. Leaving contracting or changing roles? Communicate With Your New Employer

If you change roles, make sure your new employer knows how your tax credits and bands have been used:

• Any credits used in your final payment need to be communicated to your new employer.
• Otherwise, Revenue may issue a week 1 TCC, which could result in a tax liability if the new employer is unaware.

5. Don’t Overlook Pension Contributions

Many contractors miss out on tax savings because they don’t take full advantage of pensions:

• Contributing to a PRSA or personal pension can reduce your tax bill while helping you save for the future.

6. Check Your Income Continuance Policy

If you have an income continuance or income protection policy, confirm that it qualifies for tax relief:

• Some plans are marketed as income protection but only cover bills or critical illness — these do not qualify for tax relief.
• Proper income protection policies, however, do qualify, so it’s worth checking.

Why Icon Accounting Handles Your Income Tax Return for You

At Icon Accounting, we include income tax return preparation as part of our fully managed service. This means:

• No additional cost for preparing and submitting your return.
• Expert guidance from our team ensures you avoid pitfalls and maximise your eligible credits and reliefs.
• Peace of mind that your tax affairs are handled accurately and efficiently, leaving you free to focus on contracting.

Bottom Line

Avoiding mistakes in your income tax return doesn’t have to be stressful. By following Gillian’s tips and working with Icon Accounting, you can:

• Stay compliant with Revenue requirements
• Make the most of available tax credits and reliefs
• Protect your income and plan for your financial future

Contractors and self-employed professionals in Ireland can focus on what they do best — knowing their accounting and tax obligations are in safe hands from day one. If you want to learn more about our accounting solutions or have a questions as a contractor on your tax affairs, make sure to reach out to us today!