asked the Minister for Finance if he will review the situation of widows on social welfare who have dependent children in assessing earned income.
Written Answers. - Social Welfare Benefits.
107.
A widow with one or more dependent children is entitled to the following personal allowances:
|
£ |
|
|
Widowed Personal Allowance |
2,500 |
|
One-parent Family Allowance |
1,500 |
|
Total |
4,000 |
The recipient of a widow's (contributory) social welfare pension is also entitled to the £700 PAYE allowance. It follows that she would not be liable to tax at all unless she has income of more than £4,700 p.a.
I am advised by the Revenue Commissioners that where a person in receipt of an assessable social welfare payment is also in receipt of income from employment, it is standard practice to collect any tax attributable to the social welfare payment (which is paid gross) by an appropriate restriction of the tax-free allowances available against the employment income.
It is not clear in what respect the Deputy considers this taxation treatment unsatisfactory.