# one person tax credit being restricted to principal carer



## Brendan Burgess (15 Oct 2013)

recommended by the Commission on Taxation3


One-Parent Family Tax Credit is to be replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The new credit will be to the same value but will be available only to the principal carer of the child.


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## beingfleeced (15 Oct 2013)

Can't believe it!! just qualified for single parent credit post divorce this year, now I will lose 31.73 per week- I can't afford this!! I hope they at least allow seperated couples to nominate which can claim this allowance for tax planning, my ex is on social welfare disability pension and will never use this credit!


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## chrisboy (15 Oct 2013)

This is a strange one, and a real kick in the teeth for single dads..

I suppose my ex can claim it for one of my kids, and ill claim it for the other..

Joint custody, and there is no primary carer in my situation.


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## SarahMc (15 Oct 2013)

Might be quite a few maintenance adjustment orders on foot of this.

It was always an anomaly and an unfair treatment of couples who parented together.


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## chrisboy (15 Oct 2013)

SarahMc said:


> Might be quite a few maintenance adjustment orders on foot of this.
> 
> It was always an anomaly and an unfair treatment of couples who parented together.



Not true. Single parents have double the costs of cohabiting parents.


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## sebadoh (15 Oct 2013)

Appears to be one of the few commission on taxation recomendations that was implemented


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## mandelbrot (15 Oct 2013)

chrisboy said:


> Not true. Single parents have double the costs of cohabiting parents.



How so? Do the children eat twice as much? Or require twice as much childcare? Or twice as much clothes? etc...


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## chrisboy (15 Oct 2013)

mandelbrot said:


> How so? Do the children eat twice as much? Or require twice as much childcare? Or twice as much clothes? etc...



Twice the mortgage costs, two property taxes, twice the standing charges on all services, higher transport costs.. All due to having the necessary housing for children to live with single parents.

Not twice as much clothes but definitely more clothes..


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## mandelbrot (15 Oct 2013)

chrisboy said:


> Twice the mortgage costs, two property taxes, twice the standing charges on all services, higher transport costs.. All due to having the necessary housing for children to live with single parents.
> 
> Not twice as much clothes but definitely more clothes..


 
Sorry but I don't buy that as justifying a preferential tax treatment - most of the substantial costs you just listed are general costs of living which the individuals might have regardless of whether they have kids. They'd still be paying a mortgage / rent / property taxes, still be paying for services...

Even with the credit being restricted to the one parent, between the 2 parents they still have 50% more of a personal tax credit than a married or cohabiting couple - I think that's pretty fair.


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## chrisboy (15 Oct 2013)

mandelbrot said:


> Sorry but I don't buy that as justifying a preferential tax treatment - most of the substantial costs you just listed are general costs of living which the individuals might have regardless of whether they have kids. They'd still be paying a mortgage / rent / property taxes, still be paying for services...
> 
> Even with the credit being restricted to the one parent, between the 2 parents they still have 50% more of a personal tax credit than a married or cohabiting couple - I think that's pretty fair.



There's definitely more need for a single person with kids to have a house than a single person with no kids. If i'd no kids, id either be sharing with a couple of mates, or in a flat, or most likely emigrated.But i felt for the security and happiness of my kids , after we broke up, that a house was needed.

Saying that the two parents have 50% more of a personal tax credit is mathematically correct, but in reality its one has 100% more and one has just lost half of their total personal tax credit which has been there since long before i split from my ex. And with the family law the way it is in this country will 9/10 times be the father who loses out..


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## beingfleeced (16 Oct 2013)

Doh! Just realised I will lose the Single parent tax band as well as the actual credit, this will bring the net loss to me of 47.88 per week! surely they can't punish single parents this hard in one fell swoop!


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## andrew1977 (16 Oct 2013)

How do i work out the nett impact on my take home pay ?
This is a serious cut to my already struggling weekly income.
I am dreading the impact on my pay packet in January.


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## beingfleeced (16 Oct 2013)

Well the basic single parent tax credit was 1650 / 12 which  is 137.50 per month, so this basic amount is now gone from Jan 14

additionally the single parent tax band was 36,800 it will now be basic single person band rate 32,800 so basically if you are earning more than 32,800 per year you will move into the higher 41% tax rate quicker depending on earnings this could amount to an additional 70 per month in tax


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## andrew1977 (16 Oct 2013)

Thanks for your reply, appreciate it.

Sick to the stomach with the thoughts of the new year pay packet.
Going to be an even grimmer 2014 for me with this whammy to my bottom line.
Very close to breaking point with it all now, was just getting back slowly on my feet and now this. Even to phase it out gradually would have been a help to me.


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## beingfleeced (16 Oct 2013)

Your not alone there are thousands like us,I just can't afford this either, it's worth investigating further with tax office towards year end when more detail is available, there may be some way around it through tax planning with ex partner, or modifications made by government, I belive this is such a savage hit all in one go that it will just have to be looked at again- wishful thinking I suppose, I intend to start emailing TDs and I would suggest anyone in this position should do the same.


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## dereko1969 (16 Oct 2013)

This is what the Commission on Taxation said at the time:

8.3 One-parent family tax credit​*Description​*A single parent, whether widowed, single, separated or divorced, with a dependent child or
children may be entitled to receive the one-parent family tax credit. The value of this credit is​€​​​​1,830 per annum. The one-parent family tax credit, where due, is given in addition to the basic
personal tax credit. The tax credit can be claimed in full by each parent provided the child resides
with the claimant for a whole or part of the year of claim. This condition is deemed by the Revenue
Commissioners to be fulfilled if a child resides with a parent for at least one night in the year. The
relief was originally introduced to assist single and widowed parents who work outside the home
and who have dependants. The underlying purpose of the relief, therefore, is to support labour
market participation of single parents with sufficient income to avail of the value of the credit.​
*Conclusion​*We acknowledge that this tax relief plays a role in supporting and incentivising the labour market
participation of single and widowed parents. We therefore recommend that the tax credit should
continue. However, we also note that the annual cost of this relief is considerable. We recommend
that Government should seek to minimise or eliminate the inefficiency (or deadweight element)
associated with this relief in relation to the allocation of the full credit (and the additional standard
band which applies as a result) to both parents. Such a move would help restore greater balance
between the cost of the tax credit and the benefit derived from it. Accordingly, we recommend that
the credit be allocated to the principal carer only in accordance with the current arrangements for
child benefit.​Recommendation 8.9​The one-parent family tax credit should continue and the credit should be allocated to the​principal carer only and in a similar way to the current arrangements for child benefit.


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## kasko (16 Oct 2013)

@Beingfleeced

The only change relates to tax credit.  Tax bands remain the same as in 2013


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## kateball (16 Oct 2013)

kasko said:


> @Beingfleeced
> 
> The only change relates to tax credit.  Tax bands remain the same as in 2013



Actually the bands will reduce to a lower band - for those not claiming the lone parent credit - so not only will they lose the credit they will also lose the increased band.

This is a massive loss for separated families and will impact children of in a big way - i know some separated dads who were in complete shock today.


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## Snax (17 Oct 2013)

This is all very hard to stomach. Could someone please explain how much I will lose in my pay come January? 

I am a single dad, not the primary care giver. I have a job. I found out last night reading the journal that I will lose my tax credit for being a single parent but was not aware of a change in the bands or is this the same thing?

@mandelbrot just to explain why this credit is important to people like myself. I live in a two bedroom apartment. The second bedroom is my son's room. With the help of the credits I received from this tax allowance I was able to just about make ends meet between paying for bills, pay his mother maintenance, rent, travel to and from my son's primary home 120miles each way. Keep clothes on his back as well as food etc. I am also his primary care giver for over 1 month in the year. The net result for me here is that I may be forced to rent out his room to make ends meet and he will share with me. This is not an ideal environment to raise a child, wouldn't you agree? 

You mention that I will still get on average 50% more tax credit than a cohabiting married couple, this is not true for the majority of single dads whose ex-partners will be awarded the entire credit. Hardly a fair deal for many working, single dads.


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## mir2001 (17 Oct 2013)

As a divorced working (female) parent I too am in shock. I have always shared parenting on a 50/50 basis and that is definitely the more expensive but better parenting option. Opting to have one parent remain in the family home with the other parent living in single occupancy accommodation, that affords children only visitors access, is the traditional but cheaper option. However this must upset children and why as parents, or indeed as a society, would we want to inflict that on anyone involved, children or parents? Nobody commits to a relationship and has children with separation/ divorce as the preferred outcome in mind. Furthermore, the fact that one parent must now be selected as the main carer will push divorced/ separated parents towards conflict where both are working or where one is in receipt of job seekers allowance. Surely the State should be encouraging a cooperative model of parenting. This is a very short term perspective. A loving and conflict free upbringing is much more likely to result in children who grow into productive adults who in turn will give back to society (this includes tax payments) in the long term. 

The single parent tax credit alleviated some of the burden of doing the right thing for one's children. An article on the topic in the Examiner states that "...87,586 .... are receiving the One-Parent Family Payment." [broken link removed] 

I think everyone affected by this change should make it clear to their local TDs that they will not be voting for parties that follow such retrogressive policies next time. Remember the grey vote....


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## Chancer (17 Oct 2013)

*Hit the small unloved groups*

I'm afraid this is Govt cashing in on lack of compassion for small groups, and old-fashioned moralism.
It's absolutely correct that separated parents get a lot more tax credits than cohabiting parents.Indeed sometimes grandparents get a credit as well, so it is on the face of it unfair and anti-stable-family.
I'm still, thank God, together with my family but every separated parent I know has a hard time of it financially and emotionally, and I don't grudge them an "unfair" subsidy. This should've been phased out at worst, in the same way we helped the weak, helpless stateless companies by phase-out, not this cruel fell swoop.
I'm saying this despite being very pro-marriage, eg I'm furious that two people sharing a house can get medical cards with a combined income of 1000 while a married couple would have to have as little as 900.


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## mir2001 (17 Oct 2013)

Snax: As far as I understand it, you start paying income tax €1,650 earlier. But then the real sting is if you earn more than €32,800. Before you would have had to pay 41% on everything you earned in excess of €36,800, now you have to pay 41% on everything in excess of €32,800. Bottom line is if you earn 36,800 or above you will lose the most. If you earn a lot above the 36,800 then you will probably not mind too much but if you are quite marginally above that 36,800 mark then you will be harder hit.


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## beingfleeced (17 Oct 2013)

Unfortunately you will lose a minimum of 137.50 per month, there is potential to also lose up to an additional 70.00 per month if the reduction in the tax band from 36,800 to 32,800 pushes you further into the higher tax bracket of 41%


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## kasko (17 Oct 2013)

@Kateball

Tax bands are not going to change.  Please visit Revenue website.

​Single or Widowed or Surviving Civil Partner, qualifying for 
One Parent Family Tax Credit (2013), Single Person Child Carer Tax Credit (2014)


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## chrisboy (17 Oct 2013)

kasko said:


> @Kateball
> 
> Tax bands are not going to change.  Please visit Revenue website.
> 
> ...



Yes Kasko, you are correct there, even if you lose the one parent family tax credit, you're tax band remains the same.

[broken link removed]


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## Sophrosyne (17 Oct 2013)

Chrisboy, Kasko, is that correct?

My reading is that it is only the individual who qualifies for Single Person Child Carer Tax Credit that will retain the 36,800 rate band. In 2014, only the primary carer will qualify.


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## St. Bernard (17 Oct 2013)

Just to clarify.

I am in receipt of the additional credit and increased cut off for One Parent Family Tax Credit.

However my wife (we are separated and living apart 50/50 custody of 2 kids) works part time and gets a reduced social welfare one parent family payment but no tax credit as she never applied for it.


What happens in this instance.


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## Mrs Vimes (17 Oct 2013)

A family law practitioner I spoke to yesterday is furious about this move - the family courts have been trying to move to a system where parenting is joint as far as possible and away from the primary carer model for years and it is apparently starting to work.

Having a declaration of one parent as primary carer and the other as secondary carer will undo an awful lot of progress.

Also, where one parent is not working, and is presumably the primary carer, there will be no credit at all as the non-working parent can't use it and the working one can't get it?


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## Mrs Vimes (17 Oct 2013)

So it'll be a "main parent/sub parent" sort of set-up then.

Unbelievable!

Anyone affected like to write a letter to a certain Minister who is a renowned family law practitioner? I can't imagine he's too happy about the situation.


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## Sophrosyne (17 Oct 2013)

Both men and women are legally obliged to support, out of their means, a dependent spouse/civil partner and children.

The One-Parent Family Credit (OPFA) was originally intended to assist a parent who was caring for a child (children) _*without*_ the support of a partner, such as a widow, a deserted wife, etc.

Through poorly drawn up legislation, OPFA could, inadvertently, be applied to *both* non-cohabiting parents, without either parent having to proveadequate,or indeed_ any _child maintenance, in the case of natural children. 

*Both* parents were entitled to the equivalent of the married tax credit – 3,300, i.e. a combined credit of 6,600.
*Both* parents were entitled to a 20% rate band of 36,800 – i.e. a combined 20% rate band of 73,600.

A cohabiting couple with children are entitled to a combined personal tax credit of 3,300 and to a combined 20% rate band of 41,800 up to 65,600, depending on their income.

The combined gain for two non-cohabiting parents over co-habiting couples was a tax credit of 3,300 and a combined rate band increase of at least 8,000 and at most 31,800. 
The Celtic Tiger years could sustain this, but they were an aberration.


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## E.S Tech. (19 Oct 2013)

Can someone clarify the situation for me:

I am unmarried with a 9year old child which resides with her mother during the week and me most weekends.
Her mother was getting lone parent until 2010 along with a relatively small weekly sum from me which her social worker was aware of.
I was working up to 2009 and was then unemployed until 2011. I declared myself as being single rather than having a co-dependent as I wasn't the primary care giver.
I have been back in employment since then but now pay alot more a week as her mother has since been living with someone else and has lost her lone parent allowance.
As money is becoming alot scarcer now than in the past I have only recently become aware I was eligible for the single parent credit.

So my questions are:
1) Can I claim this credit back for the years I missed? If so I assume I can only get 3 years back as I was getting welfare in 2010 and the max revenue go back is 4 years.

2) Was I also entitled to the lower tax band? I was earning over this in 2007-2009 but have only just gone over the €32,800 figure again this year so I assume I can only get a refund on that bit.

3) As her mother is now co-habiting can I claim the credit and tax band for next year. If so how do I go about that?


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## Guinea pig (19 Oct 2013)

I think you are right for number one and 2, contact the tax office and claim the credit and ask for a P21 for all years. 

For number 3, you would have to be the primary care giver to the child, it looks like they are going to use the payment of the child benefit to work out who is the primary care giver. ~Unless you can prove other wise the tax credit will got to the mum.


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## E.S Tech. (20 Oct 2013)

Thanks.

As it's all ending this year should I just wait until the new year and claim back the credit for 2011-2013 to make things simpler or is there any advantage of claiming for this now? (considering I was on jobseekers benefit in 2010).


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## lowpoint (10 Jan 2014)

From my boards.ie post......

Hi,

I'm in exactly the same boat and feeling rather hard done by.

I have always given my all for my two kids and feel like this is a kick in the teeth for any Father who is making a serious effort to do what's right.

My kids are 4 & 18. My youngest stays with me on wed, thurs, fri, sun one week & thurs, fri, sat the next week. This alternates perfectly over the year to give a 50/50 to myself and my x wife.

My 18 yr old daughter stays with me full time but does see her mother weekly yet I'm now out of pocket to the tune of €2490 per year which I cannot afford to take on the chin.

I actually feel this is blatant discrimination towards me and will fight this as far as I can.

I have no way of working this out with my X so I'll not even bother attempting to suggest she pay me half and there lies my problem.

I received a form from revenue 3 weeks before Xmas saying if I think I'm still due the credit please fill in the form. I did so but received my 2014 tax clearance cert and it was not on it.

I rang up today and was told it was abolished (as I knew) but then asked why I was sent a renewal form of sorts?

It was a mistake and nothing we can do but having explained my situation she is now sending me a form (code I can't remember) and said to fill it in and detail my situation and send it back in. I was in a place where I couldn't really talk so never got the chance to ask what exactly is was or ow it works but basically accepted that is was being posted to me so ill let you know what it is and what's it's about.

I'm actually considering contacting my local TD to discuss this further if I get no satisfaction because it is wholly unacceptable for the govt to have no plan b for situations like the one I find myself in. 

Ok rant over.

Thanks.


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## changes (10 Jan 2014)

I just got my pay this morning and i am down significantly. I take it its the One Parent Tax Credit removal. A real kick in the teeth. On top of all other changes over the last few years i am really going to struggle now.


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## supertramp (10 Jan 2014)

Just got my 2014 tax free allowance cert - confirmation of worst fears
Tax credit down by 1650 and standard threshold down by 4000 - equivalent loss of 5000 gross income

gonna be a tough year - what a shame labour in government doesnt look after minorities.
I wrote to Eamon Gilmore who is my local TD - he told me I should ask my ex-wife for the tax credit if she isnt using it!! Do these people have any idea that when people divorce - they dont tend to talk to each other that much - never mind swap tax credits!! what world do these people live in!!


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## prince20 (12 Mar 2014)

Hi there,

Also caught in a similiar position and cant afford it. Does anyone know of any way around this without going to court seeking to reducing the maintenance agreement?

TIA


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