Tax relief on the costs of employing a home carer
You can claim tax relief on the cost of employing a carer either if you employ one for yourself, or for another family member.
You can employ the carer directly or you can use an agency that employs
carers. If you employ the carer yourself, you should register as an employer
and you will be responsible for your employee's tax and social insurance (PAYE,
Universal Social Charge and PRSI).
You will also have other duties and obligations as an employer, for example
of work, contracts
of employment, pay
and the minimum
If you pay an agency to provide the carer, the agency will employ the carer and be responsible for their tax and social insurance etc. You can still claim tax relief on the cost of paying the agency to provide a carer.
If you employ a carer for yourself or on behalf of a family member, you can claim the tax relief on the cost of that care. A family member is a spouse, civil partner, child or a relative, including a relation by marriage or civil partnership.
You must be totally incapacitated for the complete tax year (January to December) in which you are claiming the tax relief but the carer does not have to be employed for the full tax year. The term totally incapacitated means you are disabled and require a carer.
You may be asked by the Revenue Commissioners to get a medical certificate to confirm the nature of your disability but it isn't necessary to send one in with your application form unless you are getting home nursing for a serious illness.
If you, or a family member has a serious illness and you employ a qualified nurse, you must provide the Revenue Commissioners with the following:
- Name, address and qualifications of each nurse providing care
- Receipts for all payments made to the nurses
- A medical certificate from doctor (either your GP or consultant)
The medical certificate must state the following:
- Name and address of the person with the serious illness
- The nature of that illness
- Confirm that constant nursing care by a qualified nurse in the patient’s home is required
- Cover the full period of time for which the tax relief is being claimed for home nursing.
Tax allowances and reliefs reduce the amount of tax that you have to pay. The amount by which a tax allowance/relief will reduce your tax depends on your rate of tax. You can find out more about how your income tax is calculated.
You can claim tax relief (at your highest rate) on the lower of the following two amounts:
- The actual cost incurred or
- The maximum deduction of €75,000
The maximum amount of relief for employing a carer is €75,000 in 2017 (It
was €75,000 in 2016 and 2015 and €50,000 in 2014 and previous years). You
must claim the relief each year. You can get
tax relief on the cost of employing a carer, less any amount recovered from the
Executive (HSE). If two or more of you pay for the care, the relief is
divided between you in proportion to the amount each paid.
How to apply
You must claim tax relief on the cost of employing a carer each year.
If you are a PAYE taxpayer, you can apply for tax relief for employing a carer on form HK 1 (pdf) or telephone Revenue Lo-call Service.
Your certificate of tax credits will be increased to include the relief due. This means that you will pay less tax each week from your salary.
Alternatively, you can claim relief at the end of the tax year by submitting your form P60 and that of your spouse or civil partner, if applicable, to your local Revenue office.
If you pay tax by self-assessment the claim for tax relief for employing a carer should also be sent on form HK 1 and attached to your annual tax return.
Where to apply
Send your completed application form to your local tax office.