Deed of Covenant?

Maz

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I am setting up a covenant for my mother - the citizens advice/revenue websites include a 'claim form', but does anyone have a sample official Deed that they have completed and had witnessed? I assume its different to the claim form? All new to me - sorry of simple Q! Thanks...
 
Yes the deed of covenant stands alone. The claim form is what your mother would use to claim back the tax you deducted on the payment. It is a slightly bizarre process but you are deemed to have deducted tax on the payment which will be collected through your PAYE or tax return.
 
That would be great Monbretia, I've been googling it and I'm hoping that a neighbour rather than a solicitor will be ok to witness, but last thing I want to do is learn that we've messed the most important step Up and completed the deed incorrectly! All help appreciated..
 
I forgot about this until I saw post today, will have a look today definitely, anyone can witness it, it's just witnessing your signature, no need for solicitor.
 
Here is a copy of one I have used, it's very old and was geared towards parent to child but you can just leave out or change those bits to suit. Mine is actually from me to my father so other way around.

The second ones are copy of a revenue brochure which also has the wording attached, again very old 2004, they may have an updated one, the brochure is on their site but it doesn't show the form so not sure whether or not there is a form attached to their newer brochure.

You could just retype it out with similar wording. The bit at the bottom about tax districts etc is obsolete now I think.
 

Attachments

  • Covenant form.pdf
    315.8 KB · Views: 193
  • Covenant form rev2.pdf
    446.3 KB · Views: 222
  • Covenant form Rev.pdf
    366.3 KB · Views: 195
Can potential tax saving be saved from someone who is paying tax at the standard rate ie 20%?

- revenue website states 'There is no tax benefit to a covenantor who pays tax at the standard rate only'

If so, then deeds of covenant would be no use to someone not paying the higher rate of tax?
 
The DOC is of no tax saving use to the person paying it if they are on 20% but it is still of use to the person receiving it assuming they are not liable for tax.
 
The Revenue kindly provide a precedent. Copy attached below.
 

Attachments

  • deed-of-covenant.pdf
    226.8 KB · Views: 235
Thanks folks, maybe just to confirm, so if a person who pays c. €1500 pa in PAYE (20% rate), the DOC is paid to incapacitate (I hate that term) minor, is it not possible that if a large/calculated DOC is paid that the person paying the €1500 in PAYE could reclaim the full amount paid in PAYE ?

Thanks.
 
I don't think I follow you. Are you saying basically covenent your full income to the other person in order to pay no tax. Would the amount not be so large that it would the person receiving it into the tax net then?

Actually this doesn't even matter as there is according to revenue no benefit to anyone on standard rate so would that mean you can't get your tax back no matter how much you covenant?
 
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