Dáil Éireann debate -
Tuesday, 5 Dec 2000

Vol. 527 No. 3

Written Answers. - Tax Allowances.

Denis Naughten

Question:

199 Mr. Naughten asked the Minister for Finance if he will include those working on family farms as being eligible for the full PAYE allowance in line with all other PAYE employees; and if he will make a statement on the matter. [28180/00]

Minister for Finance (Mr. McCreevy)

Entitlement to the PAYE allowance is governed by section 472 of the Taxes Consolidation Act, 1997. The PAYE allowance, currently £1,000 at the standard rate, is available to ordinary employees. It is not available to the self-employed – a category which includes most farmers – proprietary directors, or the spouses of those two groups when employed in the business.

The 1994 Finance Act extended the PAYE allowance to children of the self-employed, including farmers, and of proprietary directors who are genuinely employed in their parent's business. The conditions determining such genuine employment, which are set out in section 472, include a requirement that the person be required to devote substantially the whole of the their time to the employment throughout the relevant tax year, and also that the amount paid in respect of the employment should be not less than £3,600 per year.

I have no proposals to extend the PAYE allowance to other categories.