Where an individual employs a carer to care for a family member who is totally incapacitated by old age or infirmity, that person can claim tax relief on the amount of expense actually incurred in employing the carer. The individual must register as an employer and operate PAYE, PRSI and USC on any payments made to the carer, or alternatively the services of a carer may be engaged through an agency. The Revenue grant the tax relief by reducing an individual’s taxable income by the amount of expenses incurred subject to a maximum limit, which is €75,000 from 1st January 2015 (€50,000 in 2014). If the expenses are borne by more than one family member, each family member can claim tax relief on their individual expenses, with the combined expenses being subject to the overall limit.

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