February Know your rights Citizens Information Centre
Know Your Rights A: Household Charge
February 2012
Question
I am a bit confused by the new Household Charge. Who has to pay it?
Answer
In general, if you own a residential property in Ireland, you must pay the Household Charge. People on social welfare payments must pay the charge unless they qualify for one of the specific exemptions or waivers listed below.
For private rented accommodation, the landlord pays the charge, not the tenant.
Properties exempt from the Household Charge include those:
• Owned by government departments or the Health Service Executive (HSE) or
• Owned by local authorities or voluntary housing bodies including dwellings not yet fully bought from a local authority under the shared ownership scheme) or
• In a discretionary trust or owned by an approved charity or
• Which are part of the trading stock of a business and have not been sold or been the source of income since construction or
• Which are liable for commercial rates and
• Mobile homes.
People who do not have to pay the charge
If you have moved out of the property due to a long-term mental or physical infirmity you do not have to pay – for example, if you are in a nursing home or moved in with relatives because of your need for care. (However, if you were living in the property on 1 January this year, you must pay the charge for 2012.)
If you were entitled to Mortgage Interest Supplement on 1 January 2012, you qualify for a waiver.People living in certain unfinished housing estates also qualify for waivers for 2012 and 2013. Details of qualifying estates are on householdcharge.ie.
You must register the property in order to claim a waiver.
Further information is available from the Citizens Information Centre below.
Know Your Rights has been compiled by ………………………… Citizens Information Service which provides a free and confidential service to the public. Tel: ……………. Address: ………………………………………………..
Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000.
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Know Your Rights B: Tax on social welfare payments
February 2012
Question
I don’t really understand how social welfare payments are taxed. Can you explain?
Answer
If you have a social welfare payment and another source of income, you may have to pay tax on your combined income. Some social welfare payments are not taxable, but most long-term payments, such as old age pensions or widowed people’s pensions are. Illness Benefit and Invalidity Pension are also taxable.
Your taxable social welfare payment and your other income are added together. You are taxed on the total amount. There is no mechanism for taxing your social welfare pension at source (before it is paid to you). Your other income determines how tax due is paid.
For example, you are getting a State Pension (Contributory) and an occupational pension. Your occupational pension is taxed through the PAYE system in the same way as a wage or salary. This means that you get your tax credits in the normal way.
In order to tax your social welfare pension, your annual tax credits are reduced by the tax liability on your social welfare pension. You then effectively pay tax on both the pensions, but it is collected from the occupational pension. For higher incomes, the standard rate cut-off point will also be reduced. The technical term for this is coding-in of credits. The same arrangement applies if you have income from a job as well as a social welfare pension.
If your social welfare pension was not coded in, you would have to pay tax as a self-employed person and in a lump sum by 31 October each year.
If your other source of income is not taxed on the PAYE system, for example, you have investment income or you have an occupational pension from abroad, then you are classed as a self-employed person and your tax is payable annually by self-assessment, due by 31 October each year.
Further information is available from the Citizens Information Centre below.
Know Your Rights has been compiled by ………………………… Citizens Information Service which provides a free and confidential service to the public. Tel: ……………. Address: ………………………………………………..
Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000.
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Know Your Rights C: Rent Supplement
February 2012
Question
I get Rent Supplement for my wife and myself and I hear that it is to be reduced. Can you tell me by how much?
Answer
From 1 January 2012 couples must now pay a minimum of €35 per week towards their rent. The new minimum contribution by single tenants is now €30 (an increase of €6 per week).
A couple over 65 with an income equal to or less than the State Pension (Contributory) for their situation will contribute €35 towards their rent. A couple who both have State Pensions (Contributory) and no other income will also contribute €35 towards their rent.
Rent limits were reduced on 1 January 2012 for new claimants. The new limits will apply to existing claimants when their claims are reviewed or if they move to new accommodation.
The maximum amount of Rent Supplement varies according to the area in which you live. You can find out the limits for your area from the Department of Social Protection representative in your local health centre, from your local Citizens Information Centre or on citizensinformation.ie.
Note that income from working as a home help for the HSE (Health Service Executive) will now be taken into account in the means test for Rent Supplement.
Further information is available from the Citizens Information Centre below.
Know Your Rights has been compiled by ………………………… Citizens Information Service which provides a free and confidential service to the public. Tel: ……………. Address: ………………………………………………..
Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000.
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Know Your Rights D: Family Income Supplement
February 2012
Question
I get a Carer’s Allowance for one of my children. My husband is working and we get FIS (Family Income Supplement). I heard that our FIS might be reduced. Can you explain why?
Answer
It was announced in Budget 2012 that income from carer’s payments (Carer’s Benefit and Carer’s Allowance) will be included as means when calculating the amount of Family Income Supplement that you get. The change applies from January 2012 for new applicants and at your yearly renewal for all others.
However, this is to be brought in over 3 years:
• In 2012 one-third (1/3) of any family income (to you or to your spouse, civil partner or cohabitant) from a carer’s payment will be assessed
• In 2013 two-thirds (2/3) of any income from a carer’s payment will be assessed
• In 2014 income from carer’s payments will be fully assessed
For example, if you have been getting a Carer’s Allowance of €204 a week, €68 will now be taken into account as means against your FIS when your FIS is renewed.
In addition, income from working as a home help for the HSE (Health Service Executive) will be assessed for all new FIS claims from January 2012 and on renewal for other claims.
Further information is available from the Citizens Information Centre below.
Know Your Rights has been compiled by ………………………… Citizens Information Service which provides a free and confidential service to the public. Tel: ……………. Address: ………………………………………………..
Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000.
