Bernard Allen
Question:239 Mr. Allen asked the Minister for Finance the plans, if any, he has to introduce measures which will allow the tax system be more supportive of those who wish to enter or return to work in the caring professions. [3115/00]
Written Answers. - Tax Incentives.
General budgetary measures announced in the period 1998 to 2000 have been aimed at reducing the burden of personal taxation on all workers, thereby increasing the incentive to take up employment in every sector, including the caring professions. These measures include increases in the personal allowances of £1,800 single and £3,600 married, reductions in both the standard and higher rates of tax of 2% and increases in the standard rate band. The individualisation of the standard rate band announced in Budget 2000 will have the effect of removing 125,000 taxpayers from the top rate of tax and, in particular, will increase the incentive for a second spouse to enter or rejoin the labour force.
In relation to support for persons returning to work generally, the revenue job assist was introduced in April 1998 to assist the long-term unemployed back into employment. The scheme is a focused two-part initiative that gives employers an incentive to employ a long-term unemployed person. The scheme also provides the long-term unemployed person with a special additional tax relief, tapered over three years.
In addition to the general tax measures outlined above, the tax code also contains a special allowance for an individual employing a carer to look after an incapacitated family member. The allowance is £8,500 per annum at the taxpayer's marginal rate and can be shared between family members who contribute to the cost of employing a carer.
There are no proposals at present to introduce specific measures into the tax code to support those who wish to enter or return to work in the caring professions. As the Deputy will appreciate, I receive numerous requests seeking the introduction of new tax reliefs and the extension of existing ones. Tax reliefs, by their nature, reduce the tax base and make general reform of the tax system that much more difficult.