Carer's income paid by the Department of Social Protection is not subject to the Universal Social Charge but is subject to Income Tax. Income Tax is not deducted at source under the PAYE system by the Department of Social Protection. It is collected by reducing the customer's tax credits. In this case, the customer's marginal rate of tax is 20%. I am informed by the Revenue Commissioners that the customer was in receipt of Carer's income in the amount of €101.50 per week up until the 11th December 2013 and the tax liability was €20.30 per week (collected by way of reduced tax credits).
The customer contacted Revenue on the 28 April 2014 regarding his tax affairs. He explained that he was not currently in receipt of Carer's income but that the matter was under appeal. He expressed concern that an underpayment of tax might arise if his appeal was successful and there was no arrangement in place to reduce his tax credits. He requested that the Carer's income amount of €101.50 per week be included in his total income with effect from the 1 January 2014. He further indicated that he would seek a refund of tax if the appeal was not successful.
If the customer at this stage wishes to claim a refund of tax paid in 2014 in respect of this amount, he should contact his local Revenue office and the necessary arrangements will be made.