Tax Experts Team Up with Nursing Homes Ireland to Launch Finance & Tax Guide to boost underutilised Nursing Home Fee tax rebate

 

 

Significant under-claiming believed to exist amongst nursing home fee-payers

“There are at least 8 categories that could save fee-payers thousands”

 Tax refund experts Taxback.com have teamed up with Nursing Homes Ireland (NHI) to produce a Nursing Home Finance & Tax Guide aimed at ensuring anyone who is paying for nursing homes, and the associated costs, claims all the reliefs and refunds available to them. The booklet was launched at the annual NHI Conference on Thursday November 16th at Citywest Hotel, Dublin.

Eileen Devereux of Taxback.com explained why they decided to create the guide.

“Nursing home fees & associated medical care in Ireland can cost an individual anywhere from €50,000 to €80,000 a year and there’s been much debate and discussion around the financing of health and social care . We have found that although many people struggle to pay all the associated costs,  not everyone is aware of the reliefs and entitlements that already exist that could save them as much as €32,000 a year.

“Working with families that are funding nursing home fees either directly or indirectly, we find that many are either not claiming for them at all or are not claiming as much as they could.

“As part of the creation of this Finance Guide, we took a look at 4 sample case studies and the amount of money that could be saved by those paying the expenses amounted to anywhere from €400 to €25,000.”

The Taxback.com Nursing Home Finance & Tax Guide provides user friendly advice on how money can be saved and/ refunded in the following key areas:

 

-       Nursing home care

-       Nursing home expenses

-       Relief during the tax year

-       Fair Deal Scheme

-       Dependent Relative Tax Credit

-       Medical expenses

-       Kidney patients

-       Medical appliances

 

Speaking of the partnership with Taxback.com, Tadhg Daly of Nursing Homes Ireland said,

“We are pleased to partner with  with Taxback.com on this important guide on medical expenses tax relief. .

With the full costs of nursing home care not covered by the Fair Deal Scheme or the medical card, it is very important people are aware tax reliefs are available to further support payments towards the cost of nursing home care.

For the costs that must be paid by nursing home residents, or their families, there are tax reliefs available, for both the resident and their family member. We believe there’s simply not enough awareness of these tax refunds and the system can be quite confusing, which leads to high levels of tax not being reclaimed by people.

 

“We believe that all residents and their families should take full advantage of all the tax reliefs that are available to them. This useful guide is full of practical information and examples about your tax refund entitlements and will help you to avail of any benefits or reliefs that you are entitled to.

 

“Over half of those availing of nursing home care are aged 85+. This cohort of the population is forecast to increase by 46% by 2021. This will lead to a substantial growth in numbers requiring nursing home care and, hence, a corresponding increase in the numbers eligible to claim tax relief in this regard.”.”

Eileen Devereux provided an outline of what is covered in the guide,

“There are 8 main areas that should be looked at. While people might not be eligible to get money back in each category, the chances are they will certainly meet the criteria for the majority.

-        NURSING HOME EXPENSES - If you are paying nursing home fees for yourself or a parent or loved one, you can claim relief on nursing home expenses at your highest rate of tax subject to certain conditions

-        RELIEF DURING THE TAX YEAR - In certain circumstances it is possible to claim relief on your nursing home expenses during the tax year.

-        FAIR DEAL SCHEME - Many people avail of tax relief under the Fair Deal Scheme (or the Nursing Homes Support Scheme). The scheme aims to provide financial support to people who need long-term nursing home care. Under Fair Deal, you make a contribution towards the cost of the care and, if your accessed contribution is less than the amount of the fees, the HSE will pay the rest.

-        DEPENDENT RELATIVE TAX CREDIT - If you’re caring for a dependent relative you may qualify for the Dependent Relative Tax Credit.

-        MEDICAL EXPENSES - If you pay for medical costs, either for yourself or a loved one, you can claim medical expenses at a rate of 20%.  There are a variety of expenses on the list.

-        KIDNEY PATIENTS - Kidney patients are entitled to a number of additional reliefs to the normal health expenses. For example, you can claim relief on the cost of travelling to and from the hospital if you or your loved one travels regularly for dialysis treatment. If you’re travelling in your own car you can claim relief at €0.27 per mile or €0.17 per km (2017).

-        MEDICAL APPLIANCES - You can claim relief on the cost of purchasing, maintaining, and repairing medical appliances for yourself or on behalf of a loved one (that you’ve been advised to use by a registered practitioner

 

The Taxback.com guide also provides information for elderly people on disposal & transfer of assets CGT; Gift & Inheritance tax

 

Note to the Editor

Nursing Homes and Ireland’s Ageing Population – Key Statistics

-        The private & voluntary nursing home sector is a vital part of a well-functioning health service. There are 577 nursing homes (public, private and voluntary), across the Republic of Ireland, providing c30,000 residential care beds (source Public Bed register April 2012, and NHI Bed Register June 2014).  

-        In Census 2016 even though a smaller proportion of those aged 65 and older were enumerated in communal establishments, the number of usual residents aged 65 years and older enumerated in nursing homes  rose by 9.4 per cent to 22,762 persons in 2016.

-        In Census 2016 even though the absolute numbers of persons aged 65 and over in nursing homes increased, the proportion of the population decreased from 4.1 per cent in 2011 to 3.7 per cent in 2016. A higher proportion of women aged 80 - 100 years were living in communal establishments (16.8%) compared to men (10.7%). However these rates are down from 18.7 per cent for women in 2011 and 11.7 per cent for men in 2011.

 

Nursing Homes Ireland

Nursing Homes Ireland (NHI) is the representative organisation for the private and voluntary nursing home sector. Our goal is to ensure everyone who chooses a nursing home experiences a safe, happy, caring and fulfilling environment.

www.nhi.ie

http://www.nhi.ie/index.php?p=annual_conference

 

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 in 2014.

Revenue

 

You can claim relief on nursing home expenses at your highest rate of tax if:

  • the nursing home provides 24 hour on-site nursing care
  • the maintenance or treatment expenses incurred are in association with the services of a practitioner
  • the expenses are for diagnostic procedures carried out on the advice of a registered practitioner.

 

 

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/index.aspx

 

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