Dáil Éireann Debate, Tuesday - 23 July 2019
183. Deputy Michael McGrath asked the Minister for Finance if persons that work as home tutors and that are paid for this work by the Department of Education and Skills are considered as employees or as self-employed persons; if such persons are entitled to tax relief on expenses incurred in the performance of their duties; if so, the way in which they may claim such relief; and if he will make a statement on the matter. [32802/19]
View answerI am advised by Revenue that the home tutors referred to by the Deputy are employed under a contract of service i.e. they are employees. They are engaged by the parent(s) subject to satisfying criteria specified by the Department of Education and Skills. Prior to September 2015, the home tutors were paid by the parent(s) from grants paid to them by the Department of Education and Skills.
As a consequence of a Revenue audit, the Department of Education and Skills agreed to operate the PAYE system on payments to the home tutors. This facilitates ease of administration, as the payments originate from the Department, which also avoids placing the obligation to register as employer, and administer the PAYE system, on each individual parent.
With regard to the tax treatment of expenses incurred by home tutors, such expenses are governed by section 114 of the Taxes Consolidation Act 1997. That section provides that a tax deduction may be given where a tutor is necessarily obliged to incur travel expenses in the performance of the duties of employment or otherwise incurs expenses wholly, exclusively and necessarily in the performance of the duties of employment.
It should be noted that any employee who is obliged to defray expenses incurred wholly, exclusively and necessarily in the course of their employment may make a claim to Revenue to deduct such expenses from their taxable emoluments.
