Thomas Gould
Ceist:251. Deputy Thomas Gould asked the Tánaiste and Minister for Finance to confirm that he will not pursue family carers for tax liabilities. [10024/26]
Amharc ar fhreagraTuesday, 21 April 2026
Ceisteanna (251)
Freagraí scríofa
Carers play a fundamental supporting role in society, and the Government are committed to supporting individuals and families with caring responsibilities. This is acknowledged by the broad range of commitments in the Programme for Government to improving supports for carers.
The Programme for Government has set out a timeframe which commits to significantly increasing the income disregards for Carer’s Allowance in each Budget, with a view to phasing out the means test during the lifetime of this Government.
This process is underway. From last July the amount of weekly earnings disregarded was increased to €625 for a single person and €1,250 for a couple. As part of Budget 2026, I announced further improvements to the Carer’s Allowance means test that will be introduced this July. The weekly income disregard will increase by 60% from €625 to €1,000 for a single person, and from €1,250 to €2,000 for carers who are part of couple.
It is important to acknowledge that the income disregards for Carer’s Allowance are already the highest within the social welfare system.
Removing the means test is a major reform of the Carer's Allowance payment, and one we are committed to achieving.
It is important to state that there has been no change in the Income Tax treatment of Carer’s Allowance and Carer’s Benefit. Carer’s Allowance and Carer’s Benefit are subject to Income Tax but are exempt from Universal Social Charge and Pay Related Social Insurance.
As the Deputy may be aware, there is a long-standing data sharing arrangement between both Revenue and the Department of Social Protection (DSP) which facilitates the operation of both the tax and welfare systems. DSP had been reporting information on a significant number of taxable DSP payments to Revenue, including Jobseekers Benefit, Maternity Benefit, One-Parent Family Payment, State Pension (Contributory or Non-Contributory) and Bereaved Partners Contributory Pension but information for Carer’s Allowance and Carer’s Benefit has not previously been shared.
As data relating to Carer’s Allowance and Carer’s Benefit had not been shared between DSP and Revenue previously, it was the recipient’s responsibility to declare this income to Revenue. When a carer was granted the Allowance or Benefit, the DSP notice advised the carer that the Allowance or Benefit was taxable income. It was agreed by DSP and Revenue that from 1 January 2026, information on Carer's Allowance/Benefit payments will be included in the Taxable Payments Report shared directly with Revenue.
It should be noted that not all carers who are in receipt of Carer’s income will have a tax liability, particularly if their income level is below the taxation threshold, or they have sufficient tax credits to reduce their liability to nil. A person’s tax liability will depend on their individual personal circumstances, income levels and personal credits available to them and their family.
Revenue has confirmed that it is not carrying out a review of prior years in respect of Carer’s Allowance or Carer’s Benefit, solely as a result of this change. The focus of the new process is on the timely collection of tax properly due on a real time basis.
However, should an underpayment of tax arise on foot of the declaration of taxable income such as Carer’s Allowance or Carer’s Benefit, Revenue will seek to minimise any potential hardship in such cases, by collecting the liability through a reduction of a taxpayer’s tax credits over an extended 4-year period, from 2027 onwards.
I am further advised that Revenue is open to engaging with taxpayers on their individual circumstances and will work with them to agree appropriate arrangements where needed.