Benefits for carers

October 2016

Question

My mother is in hospital and I will need to provide full-time care for at least 6 months when she gets out. What is available for people in my situation?

Answer

There are several entitlements available to you. In order for you to qualify, the person you are caring for (your mother) must be deemed to be in need of full-time care and attention. This decision will be made by the Department of Social Protection, based on information provided by your mother’s GP.

If you are working at present and will be taking time off to care, you may be eligible for carer's leave of up to 2 years. You must have worked for your employer for a continuous period of 12 months to qualify for this leave.

While you are on carer’s leave, you are entitled to get credited social insurance contributions to maintain your PRSI record.

You are entitled to annual leave and public holidays in respect of the first 13 weeks of carer’s leave. Your employer cannot dismiss you or victimise you for exercising your right to carer’s leave.

You may also be entitled to Carer’s Benefit from the Department of Social Protection, if you have enough PRSI contributions to qualify.

If you do not qualify for Carer’s Benefit, you may qualify for a means-tested Carer’s Allowance.  If you get Carer's Allowance, you are entitled to a Free Travel Pass. You may also qualify for the Household Benefits Package if you live with the person you are caring for.

There is also an annual Carer’s Support Grant of €1,700, formerly known as the Respite Care Grant, which is paid to full-time carers in June each year. Even if you are not getting any other social welfare payment, you can qualify for this grant if you fulfil the conditions.

New Earned Income tax credit

October 2016

Question

I am self-employed and make a tax return each year. What is the new tax credit for self-employed people? How do I apply for it?

Answer 

From 1 January 2016, a new Earned Income tax credit of €550 is available for self-employed people (in addition to the normal personal tax credits and other reliefs). Proprietary directors who are not eligible for the PAYE employee tax credit can also claim this credit.  

This Earned Income Tax Credit is calculated at 20% of your self-employed (or earned) income. It does not include any earned income that is taken into account for the PAYE employee tax credit. Note that if you also qualify for the PAYE tax credit, the combined value of both tax credits cannot exceed €1,650.  The maximum relief for 2016 is €550. However, if your earned income is below €2,750, the tax credit is restricted to 20% of the income. For example, if your total earned income is €2,000 your maximum tax credit is 20% of this or €400.

As a self-employed person you pay tax under the self-assessment system. Under this system (known as "Pay and File") you must file your return, complete a self-assessment, and you must pay the balance of tax outstanding for the previous year. At the same time, you must pay preliminary tax (an estimate of tax due for your current trading year) for the current year. When you pay preliminary tax for 2016 you can include the Earned Income tax credit in your calculations. However the new Earned Income tax credit is not available for the 2015 tax year.

The date for payment of tax and filing of returns is 31 October each year. For 2016, if you file your tax return online using the Revenue Online Service (ROS), the due date is extended to 10 November 2016.  

New Paternity Benefits

Question

My partner and I are expecting a baby in September. Can I claim the new Paternity Benefit? Are there any other benefits I can claim?

Answer

Paternity Benefit is a new payment for employed and self-employed people who are on paternity leave from work and covered by social insurance (PRSI). The PRSI classes that count for Paternity Benefit are A, E, H (with the exception of serving members of the Defence Forces) and S (self-employed).

Paternity Benefit is paid for two weeks (in one block) and is available for any child born or adopted on or after 1 September 2016. You can start paternity leave at any time within the first 6 months following the birth or adoption placement. If you are already getting certain social welfare payments, then you may get half-rate Paternity Benefit.

You must notify your employer four weeks before you intend to go on paternity leave (12 weeks if you are self-employed). You must provide proof of the expected date of birth (this is a certificate from your spouse’s or partner’s doctor confirming when the baby is due) or confirmation of the birth if you are applying after the baby has been born. In the case of adoption, you must produce a certificate of placement.

Paternity Benefit is available from 1 September 2016. You can apply online at mywelfare.ie for Paternity Benefit from 5 September 2016 (your payment will be backdated if necessary). You must have a Public Services Card to apply for Paternity Benefit.

You can also claim up to 18 weeks of unpaid parental leave from work (until your child’s eighth birthday - or 16th if they have a disability).  Both parents have a separate entitlement to 18 weeks’ parental leave.

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000

Know Your Rights: Donations to charity

Question

I make regular donations to charity. Can I claim tax back on my donations?

Answer

The tax code provides for tax relief for “eligible charities” and other “approved bodies” including schools and educational institutions. Revenue lists bodies that have been granted a charitable tax exemption on its website.

If you make a donation of at least €250 to an eligible charity, tax relief on your donation is allowed to the charity rather than to you (the donor). Cash donations made in instalments, such as by standing order, also qualify. The charity can claim a refund of tax on your donation at the end of the tax year. Relief is granted to the charity at a blended rate of 31% rather than the rate you actually pay. The donor is not entitled to a repayment of any part of the tax that has been repaid to the charity.

The amount repaid to a charity for any tax year cannot be more than the amount of tax actually paid by the donor for that year. For example, if your income tax liability for 2015 is €350 (which you have paid), the repayment to the charity is restricted to that amount. The minimum qualifying donation for individuals in a year of assessment is €250 and the maximum qualifying donation is €1 million. (Note that corporate donations are treated differently.)

If you are willing to allow the charity claim a refund on your donation, you need to fill out a form - either an “Annual Certificate” (CHY4) for a single tax year, or an “Enduring Certificate” (CHY3) which lasts for up to five years. You can find more information about tax refunds to charitable organisations in Revenue’s booklet about the Charitable Donation Scheme (pdf).

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000