Madam, - Further to your Editorial last Saturday I would be grateful if any reader can explain the underlying logic of the following tax scenario.
My wife and I employ a nanny to look after our youngest child while we go out to work. My wife is a PAYE worker and I am self-employed. Our nanny's taxable salary and employer's PRSI are paid out of our after-tax income. Were I to employ a secretary for my business, I could claim that salary as a tax-deductible business expense. So for employing someone to mind my phones I am entitled to tax relief but for employing someone to mind my child I am not.
Further troubling me is the fact that my wife is not entitled to any tax relief for the employment she generates while she goes about her business. TDs' responses to this conundrum would be particularly welcome. - Yours, etc.,
STEPHEN RYAN, Trimleston Park, Blackrock, Co Dublin.