The medical expense tax-relief scheme, which offers a 20 per cent relief to taxpayers, covers a wider range of treatments than you might expect, writes FIONA REDDAN
IF YOU’RE in search of a Hollywood smile, perfect skin or a life without glasses or contact lenses, you might find that the price of such beauty is cheaper than you think.
While the medical expense tax-relief scheme, which offers a 20 per cent relief on expenses to taxpayers, may not extend to procedures such as Botox, it nonetheless covers a wider range of treatments than people might expect.
The scheme offers relief on a prior year basis, so that expenses incurred in 2010 can be claimed for in 2011. While it had been feared that tax relief granted under the scheme would be abolished in last December’s budget, this hasn’t been the case, and given the financial difficulties many households are facing, it is being used more and more.
Indeed, according to taxback.com, which processes tax claims on behalf of individuals, it has seen a 40 per cent increase in people applying for money back from medical expenses. And people are availing of the scheme to bring down the cost of treatments which are not always essential to their health.
“We get a lot of queries from brides-to-be wondering whether or not to proceed with procedures such as laser eye surgery or veneers in advance of the day as they obviously want to keep a handle on costs while looking as good as they can for their big day,” says Darren Byrne, tax specialist with taxback.com.
So what can you get money back on?
One of the big boom areas over the past decade or so has been the proliferation of cosmetic dentistry outlets around the State, helping people achieve their goal of getting a perfect smile.
Particularly popular are veneers, which are thin strips of porcelain that go over the front of the tooth, to give the impression that teeth are pearly white. If you’ve ever wondered how television presenters get their teeth looking so white, it’s probably because they have had veneers attached.
However, while they may be desirable, they are costly, with prices running from about €300 a tooth up to almost €1,000 depending on the substance and technique used.
For example, at Portobello Clinic in Dublin, veneers range in price from about €700 to €850, while at Cork Town Dental, they cost from €500.
Given that it is recommended you have at least eight fitted, or up to 20 if you want a complete smile, you could be looking at the equivalent of a down payment on a house for the procedure. So, availing of tax relief can bring a welcome reduction to this price.
In addition, other dental treatment such as dental inlays are included, while you can also get tax relief on orthodontic treatment, such as for invisible braces.
If you struggle with poor vision, a successful laser eye surgery means that you can throw away your glasses or contact lenses.
However, given that most private health insurance policies offer a discount of about only 15 per cent, it can still leave a significant shortfall on the cost of such a procedure, which comes in at about €1,200-€2,500 an eye.
For example, at Ultralase, which has outlets around the State, Ultra Elite laser treatment costs €2,495 per eye – or €1,996 once the tax relief is factored in.
And, if you have received treatment from a physiotherapist for an ailment or injury, you might be already aware that you can claim back money on this from the Revenue. However, you may not realise that if you are a fan of Pilates for example, and sign up for a course with a chartered physiotherapist, you will be entitled to tax relief on this also.
If you have problematic skin, treatment can be sought while also availing of tax relief.
For example, provided that you see a qualified practitioner, in line with the Revenue’s rules, you can claim back on acupuncture treatment for problems such as acne and eczema. And, if you see a dermatologist for relief for skin issues, you may also be entitled to a discount on laser treatment.
“We get a lot of queries from brides-to-be wondering whether or not to proceed with procedures such as laser eye surgery or veneers in advance of the day as they obviously want to keep a handle on costs while looking as good as they can for their big day
MAKING A CLAIM: HOW TO GET YOUR 20% DISCOUNT
You can claim relief for expenses charged over the past four years, and any expenses incurred before 2009 will benefit from a higher rate of relief, at 41 per cent, if you paid the higher rate of tax at this time.
When looking for a refund, you can make a claim on behalf of your immediate family or a dependant.
To work out how much you may be entitled to, deduct any reimbursements you may have already received from a private health insurer, and then calculate 20 per cent of this. So, if for example, you spent €3,000 on laser eye surgery, and got a 15 per cent discount on this from your private health insurer, you can submit a claim of €2,550 to the Revenue and get a further cash back of €510.
To make a claim, you can either download a Med 1 or Med 2 form for dental expenses from the Revenue's website, fill it out and send it to your regional Revenue office along with evidence of payment of tax for that year such as a P60, or do it online through the "PAYE anytime" section of revenue.ie.
If you are self-employed, you need to submit your medical expenses in your annual tax return form.
While you don't need to submit relevant expenses with your claim, you should keep all relevant ones for six years as they may be requested at a later date if your claim is selected for audit.
