Tax relief on the costs of employing a home carer

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If you employ a carer for yourself or on behalf of a family member, you can claim the tax relief on the of that care.

A family member is a spouse, civil partner, cost of that care. A family member is a spouse, civil partner, child or a relative, including a relation by marriage or civil partnership.

You cannot claim tax relief for employing a carer if the carer only carries out housekeeper duties or if a Dependent Relative Tax Credit or an Incapacitated Child Tax Credit has already been granted.

You may be asked by the Revenue Commissioners to get a medical certificate to confirm the nature of your disability but it isn’t necessary to send one in with your application form unless you are getting home nursing for a serious illness.

Home Nursing

If you, or a family member has a serious illness and you employ a qualified nurse, you must provide the Revenue Commissioners with the following:

• Name, address and qualifications of each nurse providing care

• Receipts for all payments made to the nurses

• A medical certificate from doctor (either your GP or consultant) The medical certificate must state the following:

• Name and address of the person with the serious illness

• The nature of that illness

• Confirm that constant nursing care by a qualified nurse in the patient;s home is required

• Cover the full period of time for which the tax relief is being claimed for home nursing.

Rates Tax allowances and reliefs reduce the amount of tax that you have to pay. The amount by which a tax allowance/ relief will reduce your tax depends on your rate of tax.

You can find out more about how your income tax is calculated.

You can claim tax relief (at your highest rate) on the lower of the following two amounts:

• The actual cost incurred or

• The maximum deduction of €75,000.

The maximum amount of relief for employing a carer is €75,000 in 2018 (It was €75,000 in 2017, 2016 and 2015 and €50,000 in 2014).

You must claim the relief each year.

You can get tax relief on the cost of employing a carer, less any amount recovered from the Health Service Executive (HSE).

If two or more of you pay for the care, the relief is divided between you in proportion to the amount each paid.

How to apply You must claim tax relief on the cost of employing a carer each year.

PAYE taxpayer

If you are a PAYE taxpayer, you can apply for tax relief for employing a carer on form HK 1 or telephone Revenue Lo-call Service.

Your certificate of tax credits will be increased to include the relief due. This means that you will pay less tax each week from your salary.

Alternatively, you can claim relief at the end of the tax year by submitting your form P60 and that of your spouse or civil partner, if applicable, to your local Revenue office.

Self-assessment taxpayer

If you pay tax by self-assessment the claim for tax relief for employing a carer should also be sent on form HK 1 and attached to your annual tax return.

Where to apply Send your completed application form to your local tax office.