Tax Relief

The Republic of Ireland allows you to claim tax relief if you employ a care giverr for either yourself, a family member, a spouse, or a civil partner. The individual has to be physically or mentally ‘incapacitated’ in order to make this claim. Please note that all of the information on this page has been sourced from the Irish Tax and Customs website.

REQUIREMENTS

To claim home care tax relief, the carer cannot simply carry out housekeeper duties. You also cannot claim tax relief if you have been granted the following:

  • Dependent Relative Tax Credit
  • Incapacitated Child Tax Credit 

 

It should also be noted that tax relief cannot be claimed if employing a carer from the following:

  • Your local authority
  • The HSE (Health Service Executive)

AMOUNT

The maximum deduction allowed (as of 2020) is €75,000. You can opt for the maximum deduction, or claim the actual cost incurred, depending on which is lower. This amount has to be claimed every year and does not transfer over to the next year automatically. 

The tax relief can be claimed the first tax year after proof of the person’s disability (whether mental or physical).

APPLICATION PROCESS

At Big Heart Care Services, we aim to make the tax relief process as easy as possible for you. In addition to this web guide, we provide in-person help with any difficulties you may face applying for home care tax relief. The following are the steps you have to take in order to claim tax relief for the employment of a care giver

HOW TO APPLY

The first step in the application process is to fill out a form called the HK1 “Claim for an Allowance for Employing a Carer.” A separate form must be filled and submitted for an additional carer.

An alternate option is to use myAccount. Whichever you opt for, we are more than happy to provide you with any guidance and help that we can.

WHERE TO APPLY

The completed HK1 “Claim for an Allowance for Employing a Carer” form has to be submitted to the Revenue office. If you are unsure about the address, please refer to your Tax Credit Certificate or other correspondence from the Revenue.

Another way to make sure of the address is to visit www.revenue.ie and use the Contact Locator on the website.

TIME RESTRICTIONS

A claim for tax relief cannot be made after four years of the end of the tax year the claim is for. Therefore, you must make sure to make a claim within 4 years.

In case of future audits, it is advised to keep your documents safe. These may be required and should be stored for a minimum of 6 years.

TAX OBLIGATIONS

As a direct employer, you would have to register as one and would be obliged to deduct USC, PAYE, and PRSI from the carer’s salary. However, since you’re hiring a carer through Big Heart Care Services, all of this will be taken care for you, leaving you stress-free.

Contact us now to learn more

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Contact Info

Address:

Janvari, Knocknahorgan Wood, Sallybrook. Co. Cork T45R250

Email:

Info@bigheartcareservices.ie

Phone:

+1 23 45 6789

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