Ireland’s Moms and Dads are not benefiting from the States supports available to new parents

·      Taxback.com: “At least 75% of the people we deal with do not know of the financial assistance they are entitled to”

·      Paternity Leave is still broadly underutilised across the board

 

Tax refund specialists Taxback.com say that it has come to their attention that new parents in particular are overwhelmingly unaware of the State supports that are currently in place for parents in Ireland. The tax experts estimate that 75% of moms and dads-to-be, including first-time parents, that they deal with do not have an adequate understanding of the variety of reliefs and allowances that can be claimed.

 

Stephanie Meagher with Taxback.com explained,

“Most people know the basics when it comes to the financial supports available – Maternity Benefit and perhaps the Child Benefit payment. But based on our interactions with customers every day it has become increasingly apparent that the majority of new parents out there do not know about things like Paternity Benefit, the Home Carer Tax Credit, and the Homemaker’s Scheme.

 

The relatively low uptake of the Paternity Benefit payment since its introduction in September 2016 is testament to this – in 2017 and 2018 combined there were over 123,000 babies born[1], but just 48,850 [2]fathers took up the paternity benefit in the same timeframe. While it’s certainly the case that not everyone would have been eligible for the payment or would have applied for a variety of personal or situation-dependant reasons, there’s definitely a case to be made that the low take up is in part down to a lack of awareness.”

 

Taxback.com point to the 5 most common supports and financial reliefs available to parents:

 

  1. Maternity Benefit
  2. Paternity Benefit
  3. Children’s Allowance
  4. Home Carers Tax Credit
  5. Homemakers Scheme

 

Ms. Meagher went on to comment,

“Come November there will also be an opportunity for employed and self-employed parents of new babies to get two weeks paid parental leave in the first year of their child’s life – this could be worth almost €1,000 per couple, so it is definitely something everyone should be cognisant of when the time comes. As any parent will tell you the cost of car seats, cots, nappies and all the other accoutrement that comes with babies really does add up! Based on the number of births over the last few years the Minister said this could benefit around 60,000 families and we really hope that it does.”

 

 

Taxback.com are advising that there a plethora of tax reliefs available to parents and that, by doing a little bit of research, you could save yourself a lot of money.

 

Ms. Meagher said:

“There are a variety tax relief entitlements available to parents. For instance, expectant mothers are entitled to claim tax relief at a rate of 20% on any costs incurred for routine maternity care, including private hospital fees. 

It’s estimated that 1 in 7 Irish couples experience issues conceiving[3]. These prospective parents can also claim tax back if they pay for the cost of IVF treatment. And, as the cost of IVF usually starts at €4,000, it’s easy to see how your tax refund can start to build up when you are claiming relief at a rate of 20%.

The Home Carer Tax Credit, worth €1,500 in 2019, is available to many parents who work in the home caring for a child.”

 

“Parents should remember that they can go back four years to claim these tax entitlements,” Ms. Meagher concluded.

 

 

 

Maternity Benefit[4]: Maternity Benefit is a payment made for 26 weeks to employed and self-employed women who satisfy certain PRSI contribution conditions on their own insurance record.

 

Paternity Benefit[5]: Is a payment for employed and self-employed people who are on paternity leave from work and covered by social insurance (PRSI). It is paid for two consecutive weeks and is available for any child born or adopted on or after 1 September 2016.

 

Children’s Allowance/Child Benefit[6]: Child Benefit is a payment to a qualified person (usually the mother) for a qualified child. It is paid monthly in respect of each qualified child. There are no PRSI conditions and it is not mean’s tested or taxable.

 

Home Carer’s Tax Credit[7]: You can claim the Home Carer Tax Credit if you are married or in a civil partnership, and you care for one or more dependent persons. You can only claim one credit, regardless of the number of people you care for. You cannot claim this credit if the dependent person is your spouse or civil partner.

 

Homemaker’s Scheme[8]: The Homemaker’s Scheme makes it easier for a homemaker to qualify for the State Pension (Contributory). A homemaker, for the purposes of the Homemaker’s Scheme is a man or woman who provides full-time care for a child under age 12 or an ill or disabled person aged 12 or over.

 

Taxback.com

Taxback.com is a multi-national corporation providing specialist tax return services to private and corporate clients across 100 countries. Taxback.com was the overall winner of the 2009 Ernst and Young Entrepreneur of the Year Award in Ireland and winner of a Deloitte Best Managed Companies Award.

 

Established in Dublin in 1996 and led by a team of entrepreneurial business executives Taxback.com has 27 offices worldwide, in Europe, Australasia, the United States and South America, and a staff of over 940.

 

[1] https://www.cso.ie/multiquicktables/quickTables.aspx?id=vsa02_vsa09_vsa18

[2] https://www.oireachtas.ie/en/debates/question/2018-02-20/96/

https://www.welfare.ie/en/downloads/PaternityBenefitCountyBreakdown2018.pdf

 

[3] https://www.womenshealthclinic.ie/female-infertility-and-conception.html

[4] http://www.welfare.ie/en/Pages/MaternityBenefit.aspx

[5] http://www.welfare.ie/en/Pages/Paternity-Benefit.aspx

[6] http://www.welfare.ie/en/Pages/Child-Benefit.aspx

[7] https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/home-carer- credit/index.aspx

[8]https://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/social_insurance_prsi/homemakers_scheme.html

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.