Guidance on Tax for Home Sharing Families

Tax and revenue matters are the personal responsibility of the Home Sharing family and they may wish to seek further advice from a qualified accountant. The following information provided is for information purposes only, and does not constitute as legal advice.  The NHSN provides no guarantee that income received for Home Sharing is tax exempt.

The allowances received for Home Sharing placements can be interpreted as being similar to foster care income (which is treated as an allowance) and is tax exempt.  The definition of a “carer” under section 192B of the Finance Act 2005 is; a ‘carer’ means an individual who is or was a foster parent or relative or who takes care of an individual on behalf of the Health Service Executive

When filing a tax return, Home Sharing families can use the above definition, and also submit a letter from the service provider that outlines a) total allowance paid to the Home Sharing family (1 January to 31 December) b) purpose of the allowance c) confirmation that the service provider is funded by the Health Service Executive.  Home Sharing families may also need to provide a breakdown of expenses for Home Sharing, your service provider can provide you with a list of tax deductible items.

Your service provider may request a Tax Clearance Access Number (TCAN) where allowances of €6,000 or more are received by the Home Sharing family within a calendar year. A self-assessment tax return and TCAN can be applied through the Revenue Online Services (ROS) by the Home Sharing family or an accountant.

Some families may choose to declare their income under the Rent-a-Room scheme instead of section 192b of the Finance Act 2005.  Income up to €14,000 in the tax year (1 January to 31st December) from Home Sharing can be exempt under the Rent-a-Room scheme.  The agreements between the service provider and the Home Sharing family should specify that the retainer and allowance paid is for the availability of the room to the service user.

The NHSN recommends the accountancy services of Donnellan Casserly Accountants Galway logo

091 564989  info@donnellancasserly.com

Request the service of Patrick Donnellan as he has provided services to Home Sharing families and information to the NHSN.