Carer being employed by non tax payer

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Westgolf

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Hi all, my father in law is looking into the whole issue of employing a carer to care for his wife (my mother in law).The revenue website says that he can claim an allowance as an employer and he gets relief at his marginal rate of tax. However he is retired for the last 15 years so he doesn't pay tax, the sole income is his work pension and the old age pension. Could someone clarify exactly what he could claim ?

Many thanks,
 
mathepac said:
Can the HSE help by supplying a part-time carer as part of a home-care package?
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Looking into that also but from what we hear it would only be for a few hours per week which wouldn't really address the issues.
 
Westgolf said:
Hi all, my father in law is looking into the whole issue of employing a carer to care for his wife (my mother in law).The revenue website says that he can claim an allowance as an employer and he gets relief at his marginal rate of tax. However he is retired for the last 15 years so he doesn't pay tax, the sole income is his work pension and the old age pension. Could someone clarify exactly what he could claim ?

Many thanks,
Click to expand...

In a situation where he isn't liable to pay any income tax, he won't be able to claim any refund of the tax that he didn't pay!

Hence the suggestion that another family member (who is paying income tax/PAYE) should employ (and pay) the carer and apply for the appropriate tax relief:

You may claim relief on whichever is the lower of:
  • the actual cost of employing a carer
  • €75,000 per each incapacitated person.
 
First things first, don't even suggest that you are thinking about this to the HSE when you are applying for home carer support. Play the "HSE is the only option we have" card, otherwise they will just reduce the hours offered on the basis that you can manage it yourselves.

the second thing to figure out is if you are going to employ someone direct or use an agency. The latter is the easiest but probably more expensive option. If you employ one yourselves, you are responsible for PAYE, PRSI, insurance etc.

Cost through an agency is going to be €13-€20 per hour depending on the time of day needed and the type of support needed.
 
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