Tax Relief on Voluntary Contributions

Through a recent initiative by the PTA Committee Newpark School is now availing of a Revenue Tax Relief scheme whereby Charities and Educational Establishments can seek reimbursement of tax paid by parents/guardians on monies contributed to the school.

An explanatory leaflet regarding this scheme is available from Revenue at the following link:http://www.revenue.ie/en/tax/it/leaflets/chy2.pdf

What amount is eligible?

To qualify for the tax relief the payment to the school must be over €250 in each calendar year.

At the moment the suggested annual school contribution is €300 per year for the 1st child in a family and €200 for 2ndand subsequent children so where the full amount is paid it is automatically eligible.

What do you need to do?

  1. If you pay income tax under PAYE only, you should fill in form CHY2 Cert each year and give it to the school. The school can then make the claim directly to Revenue for the repayment. This form will be issued to you by the school each year or is available at the following link.  http://www.revenue.ie/en/tax/it/forms/chy2cert-charity.pdf
  2. If you pay income tax under Self-Assessment or Self-Assessment and PAYE

You must claim the tax relief by putting the amount paid* on your Return of Income, Form 11. The claim is entered under the heading ”Approved Bodies, amount of donation in 2009”. This will result in a reduction in your tax bill for the year 2009.

** The school will issue a receipt to parents/guardians who state on the remittance slip that they are self assessed for income tax. The receipt should be retained with your tax documents.

The value of the refund available to the school in respect of a contribution of €300 is as follows:

  • PAYE Contributor (Tax refund made directly to the School)
    • If the person pays tax at the Lower rate of tax (20% at time of writing) – €75
    • If the person pays tax at the Higher rate of tax (41% at time of writing) – €208
  • Self-Assessment Contributor (Tax relief given to the Parent)
    • If the person pays tax at the Lower rate of tax (20% at time of writing) – €60
    • If the person pays tax at the Higher rate of tax (41% at time of writing) – €123

As illustrated above the funds obtained by claiming the tax refund from Revenue are significant and they greatly assist the School in providing additional facilities for students.

Please be assured that all information received will be treated in strictest confidence.