Employed Person Taking Care of an Incapacitated Individual - IT 47

Who can claim?

You, your spouse or civil partner may claim tax relief in respect of the cost of employing a person (including a person whose services are provided by or through an agency) to take care of either –

  • a family member (including yourself, your spouse or civil partner) who is totally incapacitated by reason of physical or mental infirmity, or
  • a relative who is totally incapacitated by reason of physical or mental infirmity. Relative in this context includes a relation by marriage or civil partnership and includes an individual in respect of whom the claimant is or was the legal guardian.

Revenue accepts that services provided "by or through an agency" includes services provided by:

  • charitable or voluntary organisations, e.g. the Alzheimer Society of Ireland, and
  • commercial organisations that provide home care services.

Note - Relief is not due if the carer is employed as a housekeeper only, or if the Incapacitated Child tax credit or Dependent Relative tax credit has been given in respect of the employed carer.

Any amount recovered from the Health Service Executive or a local authority in respect of the costs of employing the carer does not qualify for tax relief as any such amount reduces the cost to the claimant.

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What is the amount of the tax relief?

Tax relief may be claimed on the lower of the following amounts:

  • the actual cost incurred in employing the carer, or
  • €75,000 at the claimant’s highest rate of tax (€50,000 for years up to and including 2014)

Relief can be claimed in the first year in which the claimant proves that either he or she or a relative was totally incapacitated by physical or mental infirmity. The deduction is:

  • the lower of either the actual cost incurred, or
  • the maximum deduction of €75,000 (€50,000 for years up to and including 2014).

There is no requirement to apportion the relief by reference to the period of incapacity.

Example

Claimant has employed at a cost of €4,500 per month a person to care for a qualifying incapacitated individual who became totally incapacitated on 1 May 2013. The tax deduction due will be the lower of:

  • The actual cost incurred or
  • The maximum deduction of €50,000 for years 2013 and 2014, or €75,000 for 2015.
Tax Relief 2013, 2014, & 2015
Year Actual cost of employing the carer Maximum limit Tax Relief
2013 €36,000 (€4,500 x 8 months) €50,000 The actual cost incurred - €36,000
2014 €54,000 (€4,500 x 12 months) €50,000 Relief restricted to the maximum deduction allowable - €50,000
2015 €54,000 (€4,500 x 12 months) €75,000 The actual cost incurred - €54,000

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What is the position if two or more individuals engage a person to look after a relative?

If two or more individuals are entitled to claim this deduction in respect of the same incapacitated individual, then:

  • the aggregate of the deductions granted to them shall not exceed the current maximum amount, and
  • the relief granted to each individual shall be in proportion to the amount of the employment cost he or she has borne.

Note - The maximum amount of relief due is confirmed in Revenue Leaflet IT1 - Tax Credits, Reliefs and Rates, which is updated annually.

How is a claim made?

You can claim relief by completing pdfForm HK1 - Claim for an Allowance for Employing a Carer (PDF, 293KB).

As your claim may be selected for future audit, you should retain all documentation relating to this claim for a period of six years.

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How is the tax relief granted?

If you are a PAYE customer, relief can be claimed during the tax year and your Tax Credit Certificate will be increased by the amount of relief due.

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 Revenue office.

If you are a Self-Assessment customer, the claim should be made in your annual tax return and relief granted will be shown on your Notice of Assessment.

Unused tax relief in a particular year is not carried forward to the next year.

Note: Tax relief is only available against income tax paid. Therefore no refund is due if you have paid no tax.

Do I have to operate PAYE on payments made to the carer?

If the services of the carer are provided by or through an agency or other commercial entity and the carer is paid by the agency or commercial entity, the obligation is on that organisation to make the necessary income tax, PRSI and USC deductions through the PAYE system when paying the carer.

However, where you employ the carer directly, you will have certain obligations as an employer, including registering as an employer and making income tax, PRSI and USC deductions from the wages paid to the carer. pdfForm PREM Reg - Employer (PAYE/PRSI) Tax Registration (PDF, 244KB) must be completed and submitted to your Revenue office.

Health Expenses - Tax relief in respect of the Home Nursing in cases of serious illness

Separate and distinct from the income tax relief in respect of employing a carer as outlined above, relief under the heading of Health Expenses on pdfForm MED 1 (PDF, 1.12MB) may be claimed in cases of serious illness where a qualified nurse is engaged on the advice of a medical practitioner to provide home nursing in respect of an incapacitated individual where the following conditions are satisfied

  • a medical certificate is provided which:
    1. Shows the name and address of the patient concerned.
    2. Outlines the nature of the patient’s illness.
    3. States that constant nursing care by a qualified nurse in the patient’s home is necessary.
  • the medical certificate covers the full period for which home nursing is being claimed,
  • the nurse providing the nursing care is qualified and their full name, address and details of their qualification(s) are supplied,
  • receipts are provided in respect of all payments to the nurse and, where necessary, a breakdown of the payments is provided.

An individual can claim income tax relief on health expenses in respect of any individual provided he or she has paid the expenses. Please see information leaflet IT6 (Medical Expenses Relief) for further information.

Forms and Leaflets

Revenue claim forms and information leaflets referred to in this guide are available from Forms and Leaflets or can be requested by contacting Revenue's Forms and Leaflets service - LoCall 1890 306 706, (ROI only), + 353 1 702 3050 (if calling from abroad).

Time Limit for Repayment Claims

A claim for repayment of tax must be made within four years after the end of the tax year to which the claim relates.

Accessibility - If you are a person with a disability and require this leaflet in an alternative format the Revenue Access Officer can be contacted at accessofficer@revenue.ie

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Further Information

This leaflet is for general information only. For further information, phone your Revenue LoCall service.

Please note that the rates charged for the use of the 1890 (LoCall) numbers may vary among different service providers.

If you are calling from outside the Republic of Ireland, please phone + 353 1 702 3011.


pdfPDF Version IT47 - Employed Person Taking Care of an Incapacitated Individual (PDF, 1.14MB)


This leaflet is intended to describe the subject in general terms. As such, it does not attempt to cover every issue which may arise in relation to the subject. It does not purport to be a legal interpretation of the statutory provisions and consequently, responsibility cannot be accepted for any liability incurred or loss suffered as a result of relying on any matter published herein.

March 2015

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