Wednesday, 10 July 2013

Questions (113)

Stephen Donnelly

Question:

113. Deputy Stephen S. Donnelly asked the Minister for Finance the expected revenue generated for the year 2014, assuming no changes to the taxation relevant to the person, if an average person currently in part-time employment with a dependent spouse and one dependent child were to move to full-time employment; and if he will make a statement on the matter. [33893/13]

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Written answers (Question to Finance)

It is assumed that the individual in question is working part time in 2013 for 20 hours a week at the minimum hourly rate of €8.65 per hour, which equates to an annual income of €8,996 per annum. In 2014, the individual takes up full time employment earning the average industrial wage (i.e. €31,485 for 2012 based on the latest information available). In addition, it should be noted that any social welfare payment that an individual may be entitled to has not been taken account of for the purpose of these computations. Furthermore, it is assumed that the individual is not in receipt of a medical card and therefore does not benefit from the concessionary Universal Social Charge (USC) rate.

It should be noted that following tax credits have been included in the computation where relevant:

Tax Credit

PAYE tax credit:

€1,650

Personal tax credit:

€1,650

Married tax credit:

€3,300

One parent family tax credit:

€1,650

Home carer tax credit:

€810

Tax Liability 2013

Tax Liability

Earnings

€8,996

USC

Nil

PRSI

Nil

Income Tax

Nil

Total Deductions

Nil

Net Pay

€8,996

Tax Liability 2014

Tax Liability

Earnings

€31,485

USC

€1,523

PRSI

€1,259

Income Tax

€537

Total Deductions

€3,319

Net Pay

€28,166