7 May 2014
    
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Quintas Quarterly Newsletter
Introduction
€3,000 Tax Saving Opportunity
Best Practice for Charities
Tax Declaration to be Enforced on Child Minders
Recent News
Quarterly Economic Review - Domestic Recovery
Business Protection - What You Need To Know.
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Tax Declaration to be Enforced on Child Minders
As featured in the Cork News
 

Revenue is to enforce tax rules which affects people who charge money for taking care of children in their own homes, but don’t declare the income.

There has always been tax rules in place for child-minders, however an e-brief sent to accounting practitioners Nationally implies that the Revenue are now going to start following-up and enforcing, these tax rules..

Working in conjunction with the Department of Social Welfare as well as the HSE, Revenue is seeking to ensure child-minders file tax returns and pay accordingly.

The Rules

Child minders can look after up to 3 children (not including their own) at any one time, in their own home.

They are exempt from paying Income Tax and Universal Social Charge as long as they earn less than €15k per year, but they must pay PRSI.

This exemption is only applicable to those who mind children in their own home; if they go to the children’s home, they are taxed on their earnings as normal. Parents should note that if the child-minder is minding their children in the parents home, then the parents could be classed as the employer of the child-minder and would have to deal with the various tax issues arising from that.

Child-minders need to register voluntarily with their local HSE county representative in order to avail of the tax exemption and get access to ongoing childcare training and support. (Note: “Those taking care of a 4th pre-school child are statutorily required to register with the HSE”-Bernie Griffith, Childminding Ireland)

If they earn any more than €15k they will be taxed on their entire earnings.

In order to claim tax exemption if earning less than €15k a year, they must file a tax return.

“The enforcement of these tax rules will impact on a lot of people.  Revenue are regularly informed about people who are taking care of children in their home whilst either claiming Social Security benefits or not declaring their income so it is essential that you get your tax affairs in order”, says Dave O’Brien, Tax Manager at Quintas.

“My advice to people would be to get your paperwork in order so you can claim your exemption, if you are entitled to it and file your tax return on time”.

If you mind children in your home or in the children’s home and are unsure of your tax obligations, call Dave O’Brien at Quintas.  Dave can help you:

  • Review your current situation
  • Give you an overview of the tax rules for child-minders
  • Help determine the best way forward for you
  • File tax returns on your behalf if required.

If you would like to find out more contact Dave O'Brien on 021 4641400 or email info@quintas.ie

For more information on child-minding and statutory requirements see www.childminding.ie

 

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