Tax Credits

Tuesday, 29 September 2015

Questions (300)

Pearse Doherty

Question:

300. Deputy Pearse Doherty asked the Minister for Finance the cost of introducing a pay-as-you-earn credit for self-employed persons of €135, €200, €250, €300, €350 and €400. [33451/15]

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Written answers

I am informed by the Revenue Commissioners that the respective estimated first and full year costs to the Exchequer of introducing such a credit for the following amounts: €135, €200, €250, €300, €350 and €400 are set out in the following table:

Credit	First Year Cost €m	Full Year Cost €m
€135	24	45
€200	36	66
€250	45	82
€300	54	99
€350	63	115
€400	72	132

These estimated costs are based on extending the credits to all non-PAYE cases including Schedule D, Proprietary Directors and assisting spouses. In addition, the estimate includes cases classed as Schedule D where most of their gross income is non-PAYE. Some of these cases may be availing of the PAYE credit. The estimate does not take into account the ability of the credit to be fully absorbed.

These figures are estimates for 2016 from the Revenue tax forecasting model using the latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are, therefore, provisional and may be revised.

Questions Nos. 301 to 304, inclusive, answered with Question No. 296.