Tax on carers allowance

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BlueRav

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I am receiving carers allowance. I think I may have made a mistake with tax on this.

I need to visit a professional that will help me review this and have a look at things. I am afraid that I might have a liability and a debt. I am already on a low income.

I know citizens information used to run some drop in centres about once a month for legal advice, and other help like financial advice etc. Their drop in centres are closed due to covid but there is a helpline.

I'm wondering what is the best route or professional body to visit to help me navigate this issue:
- citizens information
- mabs
- accountant at my own expense.

Any help and advice would be greatly appreciated. I feel sick with what is looming around the corner for me.
 
BlueRav said:
I am receiving carers allowance. I think I may have made a mistake with tax on this.

I need to visit a professional that will help me review this and have a look at things. I am afraid that I might have a liability and a debt. I am already on a low income.

I know citizens information used to run some drop in centres about once a month for legal advice, and other help like financial advice etc. Their drop in centres are closed due to covid but there is a helpline.

I'm wondering what is the best route or professional body to visit to help me navigate this issue:
- citizens information
- mabs
- accountant at my own expense.

Any help and advice would be greatly appreciated. I feel sick with what is looming around the corner for me.
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First thing is don't panic. I would have thought your income would be low and you wouldn't be liable for tax perhaps you might post the figures.
I may not be best placed to help but there are plenty of great posters here that will certainly help.

Accountants aren't cheap so hold off on that route for now.
 
Revenue are normally ok in relation to some matters.. Lots of people don't realise that most social welfare payments are subject to tax. I've experienced this myself and just had my tax. Credits adjusted. Revenue and social welfare systems are linked now but some social welfare payments can be missed by revenue's system so it's very important to check every year that your tax assessment is correct
 
Thanks for the replies. The income is low. My weekly income is 420 a week between the carers allowance and some part time hours. So all in all a yearly income of about 22,100 a year for a single person. I think I would be liable for tax.

Any help as to who I can go to to help me navigate this, will be great. I have an account online on revenue but I don't know what the statements means.

I don't want to write my details online.

Would mabs help me navigate this territory or citizens information?
 
Citizens info could probably help you and would be quicker than getting an appointment with MABS although a call to their main line might get a quick result too.

In general Social Welfare Benefits are subject to tax and Social Welfare Allowances are not as the Allowances are means tested in the first place.

If a social welfare payment is taxable then you are also entitled to the PAYE tax credit to set against it. The problem might not be as big as you think at all, definitely try Citizens Info, I was a volunteer with them for a while and they are excellent at working out what allowances/benefits/thresholds you are entitled to.
 
BlueRav said:
Thanks for the replies. The income is low. My weekly income is 420 a week between the carers allowance and some part time hours. So all in all a yearly income of about 22,100 a year for a single person. I think I would be liable for tax.

Any help as to who I can go to to help me navigate this, will be great. I have an account online on revenue but I don't know what the statements means.

I don't want to write my details online.

Would mabs help me navigate this territory or citizens information?
Click to expand...
Ok you need to set up an account with Revenue and its really easy just click my account and go through it .

You probably have a small liability but you also need ensure that you are getting the correct tax credits, just thinking if you are a carer there are expenses associated that are tax deductible .....

Again try not to panic you need to simply go through each item slowly and methodically but as other posters have said Revenue will help you online with all this and once you have an online account they help quicker.
 
Up to 8 hours of work a week is allowed on carers allowance and I think it was that that subjected the two incomes for tax.

I think I do have a liability but I am afraid to face this alone. I am long term on carers and it's that that scares me. I am paying some race every week but I don't know if it is enough and it's the older years that scares me. I don't know how to navigate all of this. I don't know if I can do it alone.

How about a tax consultant? Would they help? Would they charge much?
 
Carers Allowance is taxable (unlike many allowances). If you earn €22100 in a year tax would be due of €1120 but that's assuming you only have the basic tax credits for a single person. If you have children, or particularly if it is your child you are caring for then you would be entitled to more credits and would have no liability.

Citizens info or indeed Revenue should be able to help. Revenue will arrange to have the correct taxes deducted through your employment from now on and also will arrange a payment schedule for any arrears. They won't bite!
 
It's 18.5 hours a week work is allowed.

Don't bother with tax consultants or even accountants - it is highly unlikely that they will come up with a deduction or option which citizens info or revenue won't.
 
Citizens Info needs to be your first stop, ring them now if they are not open to personal callers at the moment.

They will be more familiar with tax and social welfare than most tax consultants would be as the average customer of a tax consultant is not a social welfare recipient!
 
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