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Home Care Tax Relief

February 24, 2020

How much is Home Care Tax Relief worth?

You may claim tax relief on the cost of employing a person to take care of:

  • yourself, your family member, spouse or civil partner, who is totally incapacitated due to physical or mental infirmity

or

  • your relative, or a relative of your spouse or civil partner, who is totally incapacitated due to physical or mental infirmity.

 

Tax relief on employing a carer is given at your highest rate of tax. So if you were paying tax at the 40% rate and it cost you €10,000 to employ a carer, you would be entitled to tax relief of up to €4,000.

 

There is a yearly limit of €75,000 on which tax relief for employing a carer is allowed. This restricts any tax refund to €30,000 per year.

 

Who is eligible to claim tax relief on employing a carer?

Tax relief is available to anyone who hires a carer who is provided by or through an agency or other commercial entity. You must pay the organisation, who then pays the carer for their work.

Relief is also available on the cost of care service providers or agencies, such as:

  • charitable or voluntary organisations
  • commercial organisations that provide home care services.

 

What payments are not eligible for tax relief for employing a carer?

If you employ and pay a carer directly, you will not be eligible for tax relief. You will also be required to register as an employer and deduct PAYE, PRSI and USC from the carer’s pay.

You cannot claim tax relief for employing a carer if they are employed as a housekeeper only and you cannot claim tax relief for funding you receive for employing a carer from:

  • the HSE, or
  • a local authority

 

Tax relief for home nursing

You or your relative may suffer from a serious illness and may require home nursing. This is where you employ a qualified nurse, on the advice of a medical practitioner, to provide care at home.

You can claim tax relief for the cost of expenses from home nursing. These expenses are claimed as health expenses and relief is given at the standard 20% rate.

 

How do I claim tax relief for Employing a Carer?

To claim tax relief for Employing a Carer, just fill in our Full Review Form. This form will provide us with the details necessary to claim tax relief for Employing a Carer, along with any additional tax credits you might be due for the last 4 years.

Alternatively, you can fill out our Quick Review Form, and contact us upon completion informing us of the tax credit(s) you are looking to claim.

If you are not entitled to tax relief for Employing a Carer, but would still like us to review your taxes, just complete our 50-second Quick Review Form.