We need clarity on tax credit allowances

EARLIER this year this newspaper revealed that considerable numbers of people were not claiming what they were entitled to in terms of their tax credit allowances.

Now, a company specialising in tax matters has assessed the situation and concluded that while some 30,000 people were resident in nursing homes in Ireland in 2016, only 6,800 actually claimed tax relief at all – and even some of those were not claiming their full entitlement.

The fact that many people in nursing home care have a proportion of their fees paid for under the Fair Deal scheme does not preclude them from claiming tax relief. Many people, however, appear to be unaware of this.

This matter effectively raises two important issues which must now be addressed.

Those who are themselves resident in nursing homes, and, of course, their families who may well be contributing to the care of their loved ones need to now do all that they can to establish exactly how much tax relief they can claim.

Secondly, and crucially, it is incumbent upon the Revenue to ensure that it is easier for people to understand how the relief entitlement works.

The problem for many people with this particular form of tax relief is that the process is simply not clear enough.

While the Revenue would inevitably argue otherwise, the proof of this particular pudding lies in the fact that thousands and thousands of our citizens are not claiming their rightful due.

Obviously, they are not choosing to voluntarily deny themselves thousands of euro. Rather, how the system operates is not clear enough.

At the very least, when someone asks if there are any additional supports available, the State should do all in its power to help them avail of whatever they are entitled to.

Such money has already been budgeted for, after all, in the State’s accounts. It is there for the taking.

Nursing home care is extremely costly. Anyone who is funding that care, in order to maintain their own quality of life or the quality of life of a loved one, should be given every possible assistance.