Vol. 473 No. 1
49 Mr. Deasy asked the Minister for Health if his attention has been drawn to the fact that the taxation of the home help scheme operated by health boards may create problems for the scheme as a whole; the steps, if any, he intends to take to avert what could be a major problem; and if he will make a statement on the matter. [23079/96]
Limerick East): Full-time home help, who account for approximately 1 per cent of those involved in the home help scheme, are permanent, pensionable employees of health boards and as such are paid the group 1 non-officer rate. With effect from 1 October 1996, this scale is in the range of £205.92-£218.01. This group are taxed and superannuated in the normal way.
In contrast, part-time home helps are volunteers who are paid a stipend or gratuity for the service they provide. This gratuity is meant only as a contribution and is not intended to compensate fully for the task undertaken.
Payments made to part-time home helps do not come within the scope of the PAYE system. Agreement was reached on this issue with the Revenue Commissioners as far back as 1979 and there has been no amendment to that exclusion for this group. Neither is such income taken into account for the purposes of a means test where a part-time home help — or the spouse of a part-time home help — is in receipt of a means tested social welfare payment.
Requests in relation to the provision of PRSI numbers for existing home helps in some health boards is a separate matter and unrelated to the issue of taxation. If the Deputy wishes to pursue this separate matter it would be more appropriately referred to the Minister for Social Welfare, whose Department deals with PRSI classification and payment for non-PAYE workers.
