The tax liability in the scenarios outlined by the Deputy will be as follows:
Scenario 1 — Tax liability for 2006 of a married couple, the main earner having PAYE income of €41,000, and the spouse with non-PAYE income of €10,000 and a further €10,000 from minding three children in the couple's own home.1
Total joint income of couple€61,000
Less exempt childminding income€10,000
Net joint taxable income of couple€51,000
Tax of main earner €41,000 @ 20% =€8,200
Tax of spouse €10,000 @ 20% =€2,000
Gross tax due€10,200
Less tax credits
Married credit (€3,260)
PAYE credit (€1,490)(€4,750)
Net tax payable€5,450
Note: If the income from childminding exceeds €10,000, then all the income from childminding will be taxable under self assessment.
Scenario 2 — Tax liability for 2006 of a married couple, the main earner having PAYE income of €64,000, and the spouse with non-PAYE income of €10,000 and a further €10,000 from minding three children in the couple's own home.1
Total joint income of couple€84,000
Less exempt childminding income€10,000
Net joint taxable income of couple€74,000
Tax of main earner €41,000 @ 20% =€8,200
€23,000 @ 20% =€9,660
Tax of spouse €10,000 @ 20% =€2,000
Gross tax due€19,860
Less tax credits
Married credit (€3,260)
PAYE credit (€1,490)(€4,750)
Net tax payable€15,110
1childminding scheme as outlined in the Minister's Financial Statement in Budget 2006.