REVENUE HAS CLARIFIED that is it not carrying out a review of prior years in respect of tax liabilities related to the Carer’s Allowance or Carer’s Benefit. 

The Department of Social Protection announced last week that it began sharing information with the Revenue Commissioners on recipients of the Carer’s Allowance and Carer’s Benefit on 1 January. 

The payments have always been subject to income tax, but it was previously self-declared.

The Department confirmed that it has not supplied historical or past-year payment information on Carer’s Allowance and Carer’s Benefit to Revenue, however concerns have been raised about whether carers will now face tax bills for years gone by where the benefit was not declared. 

In a statement to The Journal today, Revenue said that it met with the department, Family Carers Ireland and Care Alliance Ireland in April 2025 to outline the new process and to discuss measures aimed at reducing the administrative burden for carers.

It also confirmed that it wrote to around 34,600 individuals to advise them of the new change and on 19 November 2025, a dedicated phone line was set up for any queries arising from the letters issued.

To date, almost 1,900 calls have been dealt with on the dedicated helpline, the Revenue confirmed. 

“The focus of the new process is on the timely collection of any tax on a forward looking basis,” said the Revenue’s statement. 

Revenue is not carrying out a review of prior years in respect of Carer’s Allowance or Carer’s Benefit as a result of this change.

It went on to say that any underpayment of income tax that does arise would be collected over an extended four-year period from 2027 onwards, through adjustments to tax credits.

“Revenue is open to engaging with taxpayers on their individual circumstances and will work with them to agree appropriate arrangements where needed,” they added. 

Asked about the concerns of carers and any tax bills they might get from Revenue, Social Protection Minister Dara Calleary said Revenue will “treat this with empathy” and “will go through each case empathetically”. 

‘We don’t want people to be concerned’ says minister

He said Revenue has informed the department that a very small number of people in receipt of the allowance will have a tax liability, stating that less than 10% of carers are liable for any tax.

“We want to be very clear that we don’t want people to be concerned. We want to work with them. And I get to the overall figure, but my understanding is that less than 10% of the 104,000 people who receive the benefit will have any tax liability charge. 

He indicated that Revenue said that in most cases where there may be a liability, it would be less than €1,000.

“We want to be very clear that we don’t want people to be concerned,” said the minister. 

Asked about whether he will move to exempt the Carer’s Allowance and Benefit from tax in this year’s budget, the minister said he is working towards abolishing the means test for carers in the first instance, but that he will certainly engage with the carers organisations on that specific issue also. 

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“I want to give as much support as possible to carers,” added Calleary. 

Labour’s social protection spokesperson Mark Wall noted that carers are saving the State €20bn a year and said it is “totally unacceptable” that the State is “going after carers”.

“We cannot tax the people that are saving the State €20 billion, and that’s the bottom line here…I’ve been inundated with people who are under severe stress with the letters that they received through their post,” Wall said.

Meanwhile, Sinn Féin TD Donnchadh Ó Laoghaire said he has spoken to constituents who were made extremely worried by these letters.

“This is happening at the same time that ministers have failed to pay back money that they owe in terms of overpayments of salaries. Carers are not tax dodgers. They are people who are out there providing care out of love, out of obligation, out of a sense of duty. They need to be supported in that regard,” he said.

Speaking about the matter in the Dáil today, Taoiseach Micheál Martin said he did not want people to create unjustified fears for carers, stating that about 90% of all carers are either registered already or are not liable for tax.

With reporting by Jane Matthews