Working from home

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Canysant1

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Further to the au-pair thread a few weeks ago, I've decided that it's all a bit too much like a lawsuit waiting to happen and have decided to quit my job and mind my 3 kids myself...for a year anyhow.
I'm wondering about the financial implications of such a decision. Are there any allowances I need to know about, what are our tax implications (my husband will continue to work) and also will I lose my PRSI stamps or is there a way for me to keep them up? I'm hoping to finance part of it by minding 2 extra kids from my neighbourhood and renting out a room in our home.
 
Your husband can claim the Home Carers tax credit (worth about 1K)
He can also transfer your individual tax credit to him (but not your PAYE credit), and some of your standard-rate allowance (talk to Revenue about this).

re: PRSI - for pension purposes, provided you're receiving child benefit, years spent not working won't affect your entitlement to the contributory pension. Not sure about other PRSI benefits (there aren't many others anyway - unemployment benefit, eh... that's it I think).
 
Thank you very much for that shweeney and Brendan. I'll give the Revenue a call and didn't know about the Home Carer's tax credit
 
Hi Canysant1,

Just something to keep in the back of your mind. While you are not working you will be assessed for PRSI benefits via your husband. However when you return to work you will then be assessed by the normal PRSI rules which in most cases look at the previous 2 years contributions. Obviously you wont have made these contributions.

I had a humdinger of a row with Social Welfare over this when I returned to work after a nearly 2 1/2 year break. I wasn't covered for illness benefit when I was out sick from work as I hadn't made contributions in the preceding two years. There are a couple of these weird loopholes. It didn't matter that I had nearly 15 years full time employment before the break only that I had 2 years where I hadn't made a contribution. It wouldn't have stopped me taking the time off just caught me out when I did return to work.

Also double check the Home carer's credit as well. I remember looking at it and my husband not opting to take it as there was a chance I might pick up a few part time jobs and it would have been a headache to sort tax around the credit.

Good luck with the break, I'm 8 years past my break and looking back it was the best thing I did.

Northie
 
Declaring your childminding income will affect the Home Carer credit...you can earn 15k childminding and qualify for the tax excemption.
 
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