I am informed by the Revenue Commissioners that the taxpayer has not paid income tax since 6 April 2001 as his weekly tax credits exceed the tax on his income. The threshold for the health levy is £14,560 per annum or £280 per week. The health levy of 2 per cent is charged on a person's total income once their income is in excess of the threshold. The person to whom the Deputy refers has income in excess of £280 per week and consequently is liable for the health levy.
I am aware of difficulties that can arise for taxpayers whose incomes increase to levels just above the threshold, sometimes referred to as the "step effect". As I have stated in the past, it is my intention to address the whole area of PRSI and levies to see if the current complex structure of different allowances, thresholds, rates and ceilings could be rationalised and I will bear this issue in mind in the context of the next budget.