Dáil Éireann Debate, Tuesday - 19 November 2013
161. Deputy Clare Daly asked the Minister for Finance if he will consider allowing apprentices to apply for tax relief on tuition fees as a result of the changes in the funding requirements being faced by apprentices during their time in institutes of technology. [48824/13]
View answerSection 473A of the Taxes Consolidation Act 1997 provides, subject to certain conditions, for tax relief at the standard rate of income tax (20%) as regards a portion of qualifying fees paid by an individual in respect of a third-level education course including a postgraduate course. Qualifying fees means tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”. No other fees (e.g. administration fees, examination fees, capitation fees) qualify for tax relief. For the tax year 2011 and subsequent tax years, the maximum qualifying fee per course per academic year is €7,000.
The tax relief is confined to tuition fees actually borne by the claimant. Tuition fees that are, or will be, met directly or indirectly by grants, scholarships, employer contribution or other means are to be deducted in arriving at the fees qualifying for tax relief.
An individual can claim tax relief on fees paid by him or her in respect of an approved course pursued by other individuals (e.g. a son or daughter) and that the claim may cover more than one student. Only a portion of the qualifying fees in each claim is eligible for relief. Each claim is restricted by the amount shown in the following table.
|
Year |
Full time (Where any one of the students in respect of whom relief is claimed is a full-time student). |
Part time (Where all the students in respect of whom relief is claimed are part-time students). |
|
2013 |
€2,500 |
€1,250 |
|
2014 |
€2,750 |
€1,375 |
|
2015 |
€3,000 |
€1,500 |
The Annual Student Contribution is levied on students attending Institutes of Technology. According to the Department of Education and Skills, FÁS/SOLAS has paid a part of the Annual Student Contribution due in respect of apprentices since 2004, with apprentices themselves paying the part of the contribution relating to examination fees. As part of Budget 2014, SOLAS will cease making payments to Institutes of Technology and apprentices will pay the full pro rata Annual Student Contribution.
The amount due by apprentices is calculated on a pro rata basis of the time which they spend in Institutes of Technology during the academic year. This is typically one third of the Annual Student Contribution paid by students attending for the full academic year but it can be greater for certain trades where longer periods are spent in Institutes of Technology.
From January 2014 up to the end of the academic year in June, apprentices will be due to pay €833 (1/3 of €2,500) per typical attendance block. From September 2013, they are already paying €233 (28% of €833) in respect of the exam fee element of the ASC. Following the Budget, from January 2014 they will also be required to pay the balance which amounts to €600 for the academic year 2013/2014. It is not planned to continue the apportionment of the ASC between exam fees and the remainder, so a single figure will be presented to apprentices in the same way as other students.
Apprentices are paid a training allowances by SOLAS for phases of their training spent in Institutes of Technology. This allowance is equivalent to the wages they receive from their employers for on the job phases and is unaffected by the budgetary changes. The amount of the SOLAS training allowance paid to apprentices while they attend IOTs ranges from €293 to €647 per week depending on the trade and phase in the apprenticeship programme.
Apprentices are not eligible for grants under the Student Grant Scheme as they do not meet the funding condition of participating in an approved full-time course in an approved institution.
As the amount being paid by apprentices for their attendance at Institutes of Technology does not exceed the minimum student contribution, it will not attract tax relief.
