Your personal finance questions – why won’t my insurer cover the theft of gifts from my car?

A Some insurers will cover you if gifts or other items are stolen from your boot, but not all, according to Jonathan Hehir, managing director of Insuremycars.ie.

The insurers who assume this risk usually only cover a fraction of the costs. For example, some insurers will only cover you up to €150 if gifts or personal belongings are stolen from your trunk when your car is unattended, others offer coverage of up to €400.

Some insurers don’t cover theft of personal items from your car at all, including from your trunk, Mr Hehir said. Check your home insurance to see if you have coverage for unspecified items.

Unspecified item coverage usually provides some protection for items stolen from your car – even if the car isn’t parked at home.

Even if your insurance covers theft of items from your trunk, lock your trunk if you leave gifts or Christmas shopping unattended in your car. Otherwise, your insurer will likely refuse to pay out.

​

Q I have started a new job and one of the benefits is that my employer pays for my private health insurance in full. I heard I have to pay tax on this benefit. Is that true and how do I make sure I’m paying the right tax?

​

A Workplace benefits are known as benefits in kind (BIK) and because these benefits have a monetary value, they must normally be treated as taxable income, according to Ray McKenna, a partner at Lockton’s Pensions and Employee Benefits Specialists.

You have to pay BIK tax on private health insurance that an employer pays in whole or in part for you. Income tax, PRSI, and the Universal Social Charge (USC) are usually payable on the value of the benefit.

It is usually the employer who makes the necessary arrangements so that you pay the correct BIK tax on your private health insurance.

You are entitled to tax relief from your private health insurance. These tax breaks can offset some, if not all, of your BIK tax bill.

This tax credit, which is given at a rate of 20 per cent on the cost of the policy (up to a limit of €1,000 for adults and €500 for children), is normally given at source, meaning you normally have no claim have to make the relief. Check if you are getting your tax breaks at source. If not, make a complaint yourself.

​

Q I used to be self-employed but am now moving into PAYE employment and will be retiring from self-employment this month. I set up my own Personal Retirement Account (PRSA) as a self-employed person and have since claimed tax relief on my pension contributions. My new employer does not offer an occupational pension but offers access to a PRSA. If I transfer to PAYE employment, I want to continue the savings in my existing PRSA and not the one that my new employer provides access to. Can I still claim my pension contributions for tax purposes?

​

A Since your employer does not offer a company pension scheme, you can continue to receive tax relief on the contributions to your existing BVG if you move to your new job. This is within the limits allowed by the IRS, according to Glenn Gaughran, director of business development at Independent Trustee Company.

Since you were self-employed for most of this year, you can claim tax relief for the contributions you made to your PRSA in 2022 when you file your self-assessment income tax return on Form 11 for the 2022 tax year.

For tax year 2023 and beyond, you can claim your tax relief through the Form 12, which is used by people whose primary source of income is PAYE income, Mr Gaughran said.

Ask your new employer to withhold your pension contributions from your wages into your existing PRSA. Your employer is not obliged to do this as they have already given you access to a PRSA and have thus fulfilled their obligations.

However, your employer can comply with such a request. The benefit is that your employer will usually give you the tax relief you are due instead of having to claim it yourself.​