If you employ a person to take care of a relative who is totally incapacitated by physical or mental infirmity you may be entitled to tax relief.
The maximum relief that can be claimed is the lower of €50K or the actual cost of employing the carer. Where two or more persons employ a carer the allowance will be apportioned between them.
This relief is not available if the Dependent Relative Tax Credit or Incapacitated Child Tax Credit has been claimed in respect of yor dependent relative.
Tax Relief will be given by one of the following means:
- It will be coded into your tax credits. This means that the tax paid on your wages will be reduced.
- You can claim it after the end of the tax year by sending your P60 to Revenue and requesting a PAYE balancing statement or using PAYEantime. Using this method will mean that you will receive a tax rebate after the year end.
- Including it on your Income Tax Return if you are self-employed. This will reduce the Income Tax payable.
It is important to remember that if you employ the carer directly that you will have obligations as an employer and will have to operate PAYE/PRSI and the Universal Social Contribution (USC).
If you require any assistance on making your claim please feel free to contact us.