Self Employed, VAT Registered & Paid by my Dad to Care for him

KAYTBEE

Registered User
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Hi Folks,

I'm in seriously need of some advice, behind in my tax submissions for the last couple of years.

I am self employed but drastically reduced my hours of work in order to look after my dad, who paid me a fee to look after him & his affairs for 2 years prior to going into a nursing home. He had a live in carer for night time, so I just did days.

My question is, do I have to pay VAT to the revenue on the money he paid me to care for him.
I happily will pay income tax on the money, but just feel like it is terribly unfair that I have to go & pay VAT on the small amount he could afford to pay me instead of working.

Any advise is appreciated. I have had a baby, doing a very little bit of work since he was 12 weeks to make ends meet & have no idea how I will meet a VAT bill on this if i have to.

Thanks in advance

KT
 
Why do you think VAT would be involved here?

VAT on services applies after selling 37,500 of services.

You seem to be adding your self-employed income to the payments from your father?



Maybe his payment to you can be considered a gift, and so exempt from CAT?
 
Whilst caring for my dad, I remained working and remained VAT registered. Yes, I initially considered the gifting route, however, I am applying for a mortgage in the next year or two and need to show this money as income as the banks require my last 3 years accounts. I don't want to show a big dip in my income, as it substantially affects the scope of the mortgage I can get
 
Firstly, it makes no sense to remain VAT registered unless you need to be. Secondly, without having checked it, I'd be amazed if nursing care is VATable anyway. Thirdly a fee charged in respect of services provided is not a gift. I suggest you get proper professional advice here as the consequences of this going wrong would be messy.
 
+1 For Tommies advice. There may also be a carer's allowance you can get paid from Social Welfare.
 
Key into Google "vat and the provision of home care services" and a pdf link to Revenue document will come up.

The good news is as you were not providing your service to a third party agency, it is exempt from vat.

100% get an accountant to get everything in order. It's easy work for them and its not expensive.
 
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