Dáil Éireann Debate, Wednesday - 24 June 2026
222. Deputy Mairéad Farrell asked the Minister for Social Protection further to Parliamentary Question No. 344 of 18 June 2026, to clarify if capital allowances, such as business-related expenses are deducted from self-employed income for the carer's allowance means test; and if he will make a statement on the matter. [48217/26]
Amharc ar fhreagraCarer's Allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.
Legislation provides that the means test takes account of the income and assets of the person (and spouse, civil partner or cohabitant) applying to the scheme.
In assessing means from self-employment, the Department uses the most recent set of accounts available. Any business-related expenses are reflected in those accounts and are therefore taken into account in assessing income from self-employment.
For Department of Social Protection purposes, expenses that are wholly and exclusively related to self-employment can be deducted from self-employment income. There is no definitive list of allowable expenses, as these depend on the type and scale of the business activity.
Common allowable expenses generally include:
• Cost of materials and supplies
• Motor expenses (business-related portion only)
• Depreciation of machinery or equipment
• Business-related insurance
• Telephone costs (business-related portion only)
• Lighting and heating used for business purposes (excluding domestic use)
• Advertising costs
• Bank charges
• Stationery
• Van leasing costs
• Labour costs
• Pension contributions
• Other expenses incurred in running the business
• Class S PRSI contributions
Capital allowances are governed by the Revenue Commissioners, allowing a company to offset certain costs and expenditure against its profits, thereby reducing the amount of tax payable.
I trust this clarifies the matter for the Deputy.
