I am informed by the Revenue Commissioners that persons in receipt of a lone parent allowance who are participating in community employment projects are chargeable to tax on both incomes. The lone parent allowance is paid in full by the Department of Social, Community and Family Affairs without tax being deducted. To collect the tax due on this allowance, it is necessary to reduce the taxpayer's tax-free allowances by an amount equal to the lone parent allowance he/she receives.
In the case of the particular taxpayer referred to in the Deputy's question, her tax-free allowances are as follows:——