Written Answers Nos. 61-80
61. Deputy Claire Kerrane asked the Minister for Finance the number of pandemic unemployment payment recipients who have tax to pay; the breakdown of the number of persons owing tax who received payments of €203, €250, €300 and €350, respectively; and the average tax payment owed by these recipients. [3536/21]
Amharc ar fhreagra66. Deputy Pearse Doherty asked the Minister for Finance the number of persons who received the pandemic unemployment payment in 2020 and received an end of year statement in which their tax position is underpaid as a result of receiving the payment; and the number of persons for whom their tax position is underpaid as a result of receiving the payment in intervals of €100, with respect to the amount by which their position is underpaid. [3098/21]
Amharc ar fhreagraI propose to take Questions Nos. 61 and 66 together.
Revenue has advised me that they published a detailed breakdown of the position of PAYE taxpayers for 2020, based on their Preliminary End of Year Statements (PEOYS). The information, which is available at the following link, https://www.revenue.ie/en/corporate/documents/statistics/registrations/paye-preliminary-eoy-statements.pdf shows the distribution of overpayments and underpayments, by amount (including averages), for all relevant PAYE taxpayers. This includes those who received the Pandemic Unemployment Payment (PUP) and the Temporary Wage Subsidy Scheme (TWSS) either separately or combined. The published information also includes those who did not receive any PUP or TWSS payments.
While it is not possible to identify whether an underpayment is solely due to a taxpayer unit having been in receipt of the PUP, table 2 sets out the position for those taxpayer units who received only the PUP and not a combination of the PUP and the TWSS; table 3 sets out the position for those persons who underpaid in increments of €100; and table 4 provides information on taxpayer units who received a combination of the TWSS and the PUP.
Finally, Revenue advise me that it is not possible to provide a breakdown of the persons owing tax by reference to the specified PUP payment amounts (€203, €250, €300 and €350) or a combination of those amounts. However, the published tables have average wages for each amount range.
62. Deputy Mary Lou McDonald asked the Minister for Finance if his attention has been drawn to the fact that a grocery store (details supplied) located in a gated business park, fully reliant on the custom of staff working with the business park, has been refused the Covid restrictions support scheme despite a 90% fall in revenue due to the current public health instruction that employees work from home; and if he will make a statement on the matter. [3073/21]
Amharc ar fhreagra63. Deputy Chris Andrews asked the Minister for Finance if consideration will be given to expanding the Covid restrictions support scheme to take into account excluded businesses that are classed as essential but are down more than 90% trade due the specific difficulties they face due to their location and the erosion of their usual customer base as a result of Covid-19 and the level 5 lockdown; and if he will make a statement on the matter. [3079/21]
Amharc ar fhreagra70. Deputy Emer Higgins asked the Minister for Finance if community centres can avail of the Covid restrictions support scheme initiative. [3136/21]
Amharc ar fhreagraI propose to take Questions Nos. 62, 63 and 70 together.
The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to purchase goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. Details of CRSS are set out in Finance Act 2020 and detailed operational guidelines on the scheme have been published on the Revenue website at: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19. The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or restrict access to its business premises.
Businesses whose trading profits are not chargeable to tax under Case I of Schedule D do not meet the eligibility criteria for CRSS.
A community centre that is not chargeable to tax under Case I of Schedule D will not qualify for CRSS. This includes a community centre that has been granted charitable tax exemption status because it is exempt from paying corporation tax or income tax on any income received where the income is used for its main charitable purpose.
A community centre that is an approved charity is not exempt from Value Added Tax (VAT) or payroll taxes and may be entitled to financial support under other measures put in place by the Government, including the Employment Wage Subsidy Scheme (EWSS) as may other businesses who do not qualify for the CRSS. They may also be eligible under the Debt Warehousing Scheme to ‘park’ certain VAT and PAYE (Employer) liabilities and any excess payments received under the Temporary Wage Subsidy Scheme (TWSS).
The purpose of the CRSS is to provide additional support to the businesses who have had to close temporarily or significantly restrict access to their premises as a direct result of public health Regulations. The Government will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.
64. Deputy Pearse Doherty asked the Minister for Finance the revenue raised in stamp duty from real estate investment trusts as a result of the insertion of section 31D in the Stamp Duty Consolidation Act 1999 since it took effect on 9 October 2019. [3095/21]
Amharc ar fhreagra65. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would have been raised in stamp duty since 9 October 2019 had REITs been incorporated into section 31C of the Stamp Duty Consolidation Act 1999. [3096/21]
Amharc ar fhreagraI propose to take Questions Nos. 64 and 65 together.
I am advised by Revenue that due to the small number of Real Estate Investment Trusts (REITs) involved, and its obligation to maintain the confidentiality of taxpayer information, the data sought by the Deputy cannot be provided. I am further advised that regarding Question 3096/21, is not possible to estimate the revenue that would have been raised had REITs been incorporated into section 31(C) of the Stamp Duty Consolidation Act 1999, as information on the relevant transactions, that would be subject to such a change, is not required to be reported to Revenue.
67. Deputy Pearse Doherty asked the Minister for Finance the expected revenue in a given year from ending the tax deductibility of profit participating interest without exception and of management fees, respectively, for section 110 companies; if he will consider reviewing the taxation of section 110 companies; and if he will make a statement on the matter. [3099/21]
Amharc ar fhreagraSection 110 of the Taxes Consolidation Act 1997 sets out a regime for the taxation of special purpose companies set up to securitise assets. The tax provisions are intended to create a tax neutral regime for bona-fide securitisation and structured finance purposes. The section 110 regime enables noteholders to invest through one structured vehicle, without giving rise to an additional layer of tax as compared to a direct investment in the underlying assets.
Securitisation allows banks to raise capital and to share risk and, by providing a repackaging and resale market for corporate debt, it lowers the cost of debt financing. It is accepted that having the option for more diversified sources of financing is good for investment and business. It is also important for financial stability in the economy, as the ability to securitise loan books plays an important role in allowing banks to meet their capital requirement obligations and to continue lending to businesses and individuals.
I am advised by Revenue that It is not possible to identify the amount of tax that would be raised in any given year by ending the deductibility of the items identified by the Deputy. Any such estimate would be entirely hypothetical as it is not possible to determine whether companies would still avail of section 110 status should the deductibility of such items be withdrawn.
Department of Finance officials, together with officials in Revenue, continue to monitor the sector and the operation of section 110 on an ongoing basis, with a view to taking action should it be deemed necessary. For example, in 2019 Department officials prepared a report on Real Estate Investment Trusts, Irish Real Estate Funds and section 110 companies as they invest in the Irish property market. This report was presented to the Tax Strategy Group in July 2019 and informed the amendments to the section 110 regime introduced in Finance Act 2019. These amendments strengthened the significant restrictions to the deductions which a section 110 company can claim for payment of profit participating notes to a specified person. The amendments also placed the section’s main purpose test on an objective basis, which enables Revenue to more effectively challenge abuse of the legislation.
68. Deputy Pearse Doherty asked the Minister for Finance the weekly payments made to eligible businesses under the Covid-19 restrictions support scheme since its inception, in tabular form. [3100/21]
Amharc ar fhreagraRevenue has published detailed statistics on the main COVID-19 subsidy schemes since late March 2020, including the Temporary Wage Subsidy Scheme (TWSS), the Employment Wage Subsidy Scheme (EWSS) and the Covid Restrictions Support Scheme (CRSS). These statistics are available at link https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-support-schemes-statistics.aspx and are updated on a weekly basis at the same link. The CRSS statistics show information on claim periods, including amounts claimed and the numbers of premises claiming by period.
69. Deputy Richard Boyd Barrett asked the Minister for Finance if he will instruct the banks to extend loan and mortgage breaks in repayments and to offer further breaks to those whose work has been dramatically affected by Covid-19 measures, given that there are many more whose incomes have been decimated by Covid-19 restrictive measures by Government; and if he will make a statement on the matter. [3120/21]
Amharc ar fhreagraOn 18 March last the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the COVID-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months. The implementation of this voluntary moratorium by the banking industry was a flexible response to the emerging COVID-19 crisis and ensured that a large volume of affected customers could benefit quickly during a fast moving and evolving public health crisis.
While many borrowers whose payment break has ended have been able to return to full payments, it is also recognised that many borrowers continue to be impacted by the economic consequences of COVID-19 and they may not be in a position to resume their loan repayment commitments when their payment break ends or may now be in difficulty for the first time.
Regarding the offering of further payment breaks, the Deputy should be aware that the Central Bank has confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers, providing they are appropriate for the individual borrower circumstance. The BPFI has also reiterated in recent days that standard payment breaks continue to be part of the wide range of tailored solutions which are being made available to customers upon assessment of their situation.
Borrowers have a suite of regulatory protections, such as the Central Bank's Code of Conduct on Mortgage Arrears and the Consumer Protection Code, and lenders have specific obligations to support and work with borrowers who are continuing to experience loan difficulty because of COVID-19. The options could include additional flexibility, and this could be a short term arrangement such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements.
Through ongoing engagement with the BPFI and lenders, the Central Bank is working to ensure that borrowers affected by COVID-19 continue to be supported through this period of unprecedented stress. The Central Bank recently wrote to all lenders indicating that lenders are to ensure that they have sufficient expert resources to assess individual borrower circumstances, and to offer appropriate and sustainable solutions to affected borrowers in a timely manner in line with regulatory requirements and Central Bank expectations.
I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection and other applicable frameworks will be fully available to all borrowers that will still need support.
71. Deputy Catherine Murphy asked the Minister for Finance the amount paid out in damages in non-medical negligence cases by the State Claims Agency in 2020; the top five amounts paid out; and the nature of each case. [3164/21]
Amharc ar fhreagraWith respect to claims under the management of the State Claims Agency (SCA), I am informed that, as of 31 December 2020, Damages payments with respect to General claims paid in 2020 by the SCA on behalf of delegated State Authorities and Healthcare enterprises amounted to €42,825,178. Please note that clinical care claims are excluded from this response, however the term Damages payments can include both General Damages and Special Damages.
The State Claims Agency has prepared the below table in response to the information requested by the Deputy.
|
Incident/Hazard Category |
Sub Hazard Type |
Damages Paid in 2020 |
|
Exposure to Behavioural Hazards |
Violence, Harassment and Aggression |
€ 1,020,626 |
|
Exposure to Psychological Hazards |
Death Alleging Negligence |
€ 629,420 |
|
Exposure to Behavioural Hazards |
Self-Injurious Behaviour |
€ 600,000 |
|
Exposure to Behavioural Hazards |
Violence, Harassment and Aggression |
€ 525,710 |
|
Exposure to Psychological Hazards |
Death Alleging Negligence |
€ 525,000 |
For information, the incident/hazard category is a high level classification used to describe the cause of an incident. It is based on international recognised hazard classifications which have been further developed to denote hazards which can have a direct or indirect impact on a person or property. This high-level classification is a grouping together of like type hazards which are broken down in further detail in the sub-hazard type which provides a further breakdown so that more specific detail can be recorded.
72. Deputy Catherine Murphy asked the Minister for Finance the amount paid out by the State Claims Agency in plaintiff legal costs and its own legal costs in non-medical negligence cases by the State in 2020. [3165/21]
Amharc ar fhreagraI am informed by the State Claims Agency (SCA) that, as of 31 December 2020, the total plaintiff legal costs and agency legal costs paid on all claims being managed by the SCA under the General Indemnity Scheme between 1 January 2020 and 31 December 2020 was €35,572,220.
The SCA have supplied the following table to show the breakdown of these costs:
|
Transaction Type |
Total |
|
Agency Legal Costs |
€ 15,319,170 |
|
Plaintiff Legal Costs |
€ 20,253,050 |
|
Grand Total |
€ 35,572,220 |
Please note that this figure relates only to claims under the General Indemnity Scheme and exclude all claims relating to clinical care. The legal costs sum includes VAT, and in the case of plaintiff’s costs, the sum shown also includes payments made in respect of experts retained by plaintiffs to support their cases.
73. Deputy Catherine Connolly asked the Minister for Finance the actions he is taking to ensure that any loan forbearance by banks for businesses that are closed as a result of Covid-19 restrictions will not have a negative impact on the businesses' credit gradings; if a moratorium will be introduced on loan penalties for businesses for the remainder of the Covid-19 pandemic; and if he will make a statement on the matter. [3218/21]
Amharc ar fhreagraOn 18 March last the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the Covid-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months. The implementation of this voluntary moratorium by the banking industry was a flexible response to the emerging Covid-19 crisis and ensured that a large volume of affected customers could benefit quickly during a fast moving and evolving public health crisis.
The Deputy may wish to note that borrowers whose payment break has ended are been given an option to return to full repayments based on the same term of the loan or to extend the term of the loan or to engage further with their bank on suitable arrangements. On 30 November last, the BPFI reported that approximately 49% of SMEs returned to repaying on the existing term whilst 46% returned to repaying on extended term basis and just over 5% returned on reduced repayments.
The Central Bank has confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers, providing they are appropriate for the individual borrower circumstance. The BPFI has also reiterated in recent days that standard payment breaks continue to be part of the wide range of tailored solutions which are being made available to customers upon assessment of their situation.
SME borrowers have regulatory protections via the Central Bank's SME lending regulations. The SME Regulations https://centralbank.ie/news/article/regulations-for-firms-lending-to-smes-from-2016 set out the required treatment of SMEs by regulated entities in relation to various aspects of business lending. This includes detailed provisions around the credit application process, requirements regarding security or collateral, credit refusals and withdrawals, handling complaints, managing arrears and having in place policies for engaging with SMEs in financial difficulty. The options could include additional flexibility, and this could be a short-term arrangement such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements.
In addition, Credit Review https://www.creditreview.ie was established to assist those SMEs and farm borrowers that have had credit applications of up to €3 million refused or indeed an existing credit facility withdrawn or amended by the participating bank. SMEs can apply to Credit Review after exhausting the internal appeals process in the participating institution, which are currently AIB, BOI, Ulster Bank and Permanent TSB.
Through ongoing engagement with the BPFI and lenders, the Central Bank is working to ensure that borrowers affected by COVID-19 continue to be supported through this period of unprecedented stress. The Central Bank recently wrote to all lenders indicating that lenders are to ensure that they have sufficient expert resources to assess individual borrower circumstances, and to offer appropriate and sustainable solutions to affected borrowers in a timely manner in line with regulatory requirements. The Central Bank’s clear expectation is that lenders engage effectively and sympathetically with distressed borrowers.
It should be noted that the Central Credit Register does not produce credit scores; rather the information on a credit report provided by the Central Credit Register is factual in nature and the information is provided to the Central Credit Register by lenders. It contains no guidance, recommendation or prohibition for lenders on what decision they should make on an application for credit or repayment arrangements agreed with borrowers. Subject to complying with applicable law and regulatory requirements, it is a matter for lenders to make their own lending decisions in accordance with their own credit policies and risk appetites.
I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection and other applicable frameworks will be fully available to all borrowers that will still need support.
74. Deputy Ged Nash asked the Minister for Finance the relief that local authorities can seek in regard to their obligation to pay VAT and tax as a local Government body (details supplied); his views on whether some form of VAT relief for local authorities is required given that they are currently being charged VAT for services, including the construction of council owned homes; and if he will make a statement on the matter. [3238/21]
Amharc ar fhreagra75. Deputy Ged Nash asked the Minister for Finance his plans to put in place a VAT exemption or claim system for local authorities, given that the application of VAT is prohibiting the construction of affordable social homes; and if he will make a statement on the matter. [3239/21]
Amharc ar fhreagraI propose to take Questions Nos. 74 and 75 together.
The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply.
Under the Directive the supply of construction services is generally liable to VAT at the standard rate. However, by way of special derogation from the general rule, Ireland is permitted to continue to apply a reduced rate, currently 13.5%, to the supply of all construction services.
There are no provisions under the Directive or Irish legislation to permit the application of a VAT exemption to the supply of construction services based on the status of the customer. Where a person makes a supply of construction services to another party those services must be charged to VAT at the appropriate rate. This is so even where the VAT due on those services must, in accordance with legislation, be accounted for by the recipient of the services (under the reverse charge system), rather than the supplier, and regardless of whether the recipient of the services is a public body.
A person who receives construction services, including a local authority, may reclaim the VAT on construction costs incurred where the construction services are acquired and used for the purposes of the recipient’s taxable activities.
76. Deputy Michael Lowry asked the Minister for Finance the reason guidelines have changed, as of 1 January 2021, concerning benefit-in-kind on company cars and vans during the Covid-19 pandemic (details supplied); if he will request the Revenue Commissioners to reinstate a previous agreement under Revenue eBrief No. 054/20; and if he will make a statement on the matter. [3249/21]
Amharc ar fhreagraIn March 2020 Revenue introduced a short-term concessionary measure in relation to the operation of benefit-in-kind (BIK) on employer-provided vehicles having regard to the unprecedented situation arising as a result of the COVID-19 pandemic.
The concessionary treatment applicable to BIK on employer-provided vehicles, along with all other COVID-19 related measures, is kept under regular review by Revenue. In early December 2020, and as the public health restriction at the time began to ease and businesses reopen, Revenue confirmed that the concessionary measure related to employer-provided vehicles would cease to apply on 31 December 2020 and, with effect from 1 January 2021, BIK on same should be calculated in the usual manner.
However, since then, Level 5 public health restrictions have been subsequently introduced. On 24 December 2020, all restaurants, cafés and gastro pubs as well as personal services, such as hairdressers, beauticians and barbers closed, while hotels, guesthouses and B&Bs remain open but are restricted to essential non-social and non-tourist services only. Additionally, on 31 December all non-essential retail as well as gyms, leisure centres and swimming pools closed. For employees, the public health advice is to work from home in all instances unless work is an essential health, social care or other essential service that cannot be done from home.
Having regard to the current public health restrictions Revenue confirmed in eBrief 004/2021, which issued on 14th January 2021, that the short-term concessionary measures announced back in March will remain in place. This means that, for the time being:
- Where an employer takes back possession of the vehicle and an employee has no access to the vehicle, no BIK shall apply for the period.
- Where an employee retains possession of a vehicle, but the employer prohibits the use of the vehicle, no BIK shall apply if the vehicle is not used for private use.
Records should be maintained to show that the employer has prohibited its use and no such use has occurred, for example communication from employer, photographic evidence of odometer, etc.
Where an employee has a car provided by his or her employer and
1. the circumstances in the previous example don’t apply,
2. limited or reduced business mileage (if any) is undertaken due to the COVID-19 crisis, and
3. personal use is limited
the amount of business mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of BIK due. Thus, the percentage applied in the calculation of the cash equivalent, which is based on annualised business mileage, may have regard to the actual business mileage for January 2020, for the current period of the COVID-19 restrictions. Appropriate records should be kept, for example business mileage travelled in January, amount of private use, photographic evidence of odometer etc.
Guidance on the above and other COVID-19 related matters can be found on Revenue’s website*.
Due to the nature of the COVID-19 pandemic it is not known how long any COVID-19 restrictions will ultimately remain in place. Revenue will however continue to regularly review all COVID-19 related matters (including the provisions relating to BIK on employer-provided vehicles) and if any further measures are considered necessary in the future, updated guidance will be made available by Revenue in relation to same as soon as possible.
*https://www.revenue.ie/en/corporate/communications/covid19/compliance-with-certain-reporting-and-filing-obligations.aspx
77. Deputy Denis Naughten asked the Minister for Finance the steps he is taking to assist persons facing income tax demands as a result of the pandemic unemployment payment and wage subsidies; and if he will make a statement on the matter. [3260/21]
Amharc ar fhreagra85. Deputy Ged Nash asked the Minister for Finance if he will consider designing a scheme to remove the tax liabilities from workers who have had their salaries paid under the temporary wage subsidy scheme, as a one-off solidarity gesture and capped to exclude higher earners; if he will include the pandemic unemployment payment recipients in such a scheme; and if he will make a statement on the matter. [3443/21]
Amharc ar fhreagraI propose to take Questions Nos. 77 and 85 together.
Income received under the Temporary Wage Subsidy Scheme is subject to income tax and USC. The Pandemic Unemployment Payment is an income support that shares the same characteristics as jobseekers benefit and similar to jobseekers benefit, is taxable income. This ensures consistent treatment with other workers whose pay was not subsidised by the State, including those in receipt of pay commensurate with the levels of income paid out under the measures such as minimum wage workers.
Tax was not collected in real-time through the PAYE system while the TWSS was in operation. Instead, liability to tax will be calculated by Revenue through the regular end of year review process. This decision was taken in order to maximise the amount of financial support that was provided to recipients at a time when it was considered that they needed such support most.
Revenue’s recent notification to taxpayers of the preliminary assessment of their 2020 tax liability shows that a substantial majority of all taxpayers (80%) have either no additional tax to pay or have an outstanding liability of less than €200.
Although the final calculation of the end of year liability for each person is dependent on their personal circumstances, it is noted that almost half of those in receipt of the PUP or TWSS have no outstanding liability to discharge (in fact over a third are due a refund).
In the case of the remaining taxpayer units with an outstanding liability, the data indicates that amounts to be collected are modest in scale, with 44% owing less than €500 and 72% having a liability of less than €1,000.
If paid over the 4 year period beginning in 2022, the majority of those cases will owe less than €5 per week, with nearly half paying less than €2.50 per week. These figures represent a preliminary liability and may be further reduced by additional tax credits or reliefs such as health expenses.
For those with liability in excess of those amounts, their average taxable income in 2020 was higher than those with the more modest liabilities, indicating income from sources other than the State income sources. It is also noted that those with the highest outstanding liability are those with the largest average taxable incomes, typically well in excess of average incomes (in the majority of cases with average taxable income of over €70,000 per annum).
I am satisfied that Revenue have adopted a fair and flexible approach to the collection tax due on payments made under the TWSS and PUP and do not plan to make any changes in that regard.
78. Deputy Eoin Ó Broin asked the Minister for Finance if the banking section of his Department is currently engaging with the Department of Housing, Heritage and Local Government and the banking sector on the issue of the proposed €75 million shared equity loan scheme; if so, the nature, frequency and content of these engagements; if additional funding for the scheme from private banks is being sought; if so, the rates of interest being discussed; and the involvement the banks will have in the administration of the shared equity loan scheme. [3362/21]
Amharc ar fhreagra95. Deputy Pearse Doherty asked the Minister for Finance if the Government’s affordable purchase shared equity scheme will come under the remit of his Department; and if he will make a statement on the matter. [3489/21]
Amharc ar fhreagraI propose to take Questions Nos. 78 and 95 together.
The Affordable Purchase Shared Equity Scheme is a policy initiative which falls under the remit of the Department of Housing, Local Government and Heritage following the allocation of €75m of funding as part of Budget 2021.
Officials in my Department have been providing on-going support and assistance to the Department of Housing, Local Government and Heritage and the Housing Agency in relation to the development of the scheme including in relation to the involvement and participation of the banks in the roll out of the scheme. The final details of the scheme, including the extent of third party funding and the rates of interest that may apply to the shared equity loan support, are still under discussion and remain to be finalised by the Department of Housing, Local Government and Heritage over the coming months.
79. Deputy Colm Burke asked the Minister for Finance the supports available to workers working from home; and if he will make a statement on the matter. [3375/21]
Amharc ar fhreagraWhere e-workers incur certain extra expenditure in the performance of their duties of employment remotely or from home, such as additional heating and electricity costs, there is a Revenue administrative practice in place that allows an employer to make payments up to €3.20 per day to such employees, subject to certain conditions, without deducting PAYE, PRSI, or USC. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers for the purposes of this practice.
This administrative practice has been in place for some time and the choice of whether to make the payment of €3.20 is at the discretion of the employer. The value of relief allowed under the Irish system is already considered sufficient to cover any legitimate additional costs incurred by workers. The level of support allowed also compares favourably internationally: at €3.20 per day up to €16 per week or €832 per annum may be paid tax free. By contrast, the weekly rate in the UK is just £6 per week or a maximum of £312 per annum.
Revenue also advise that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental.
Where an employer does not pay €3.20 per day to an e-worker, employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act (TCA) 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment. PAYE employees are entitled to claim costs such as additional light and heat in respect of the number of days spent working from home, apportioned on the basis of business and private use.
As I announced on Budget day last October, in addition to these existing measures, Revenue have agreed to allow broadband to qualify for this relief. This apportionment is based on the number of days the person spent working from home in year with 30% of the apportioned value accepted by Revenue as related to work in the home.
PAYE workers can claim e-working expenses by completing an Income Tax return at year end. Revenue advise that the simplest way for taxpayers to claim their e-working expenses and any other tax credit entitlements is by logging into the myAccount facility on the Revenue website.
Revenue have published detailed guidance on e-working arrangements in their Tax and Duty manual TDM 05-02-13 e-Working and Tax which may be viewed at the following link:
https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf
Finally, the recently published National Remote Working Strategy: Making Remote Work, commits the Tax Strategy Group to reviewing the current tax arrangements for remote working in respect of both employees and employers. The Tax Strategy Group will take account of the economic, financial and organisational implications arising from the experience of remote working during the pandemic, and assess the merits of further enhancements for consideration in the context of Budget 2022.
80. Deputy Colm Burke asked the Minister for Finance if measures will be put in place to deal with the backlog in vehicle registration tax appointment waiting times in Cork; the nature of the measures; and if he will make a statement on the matter. [3379/21]
Amharc ar fhreagraI am advised by Revenue that because of the interruptions to the operation of National Car Testing (NCT) centres and the continuing need to limit the number of customers attending the centres due to COVID 19 restrictions, there are delays in getting pre-registration inspection appointments.
Revenue monitors the registration service provided by National Car Testing Service (NCTS) Centres on an ongoing basis. In the context of the safety protocols relating to Covid-19, the capacity of NCTS Centres is restricted and there is less opportunity to increase their level of service than would otherwise be possible. This has resulted in delays in several Centres including the two Cork Centres. Working hours have been extended in these Centres to address the backlog. At present customers can expect to wait between 6 and 20 working days for a pre-registration appointment; the 20 day wait occurs in two NCTS centres.
The service provider has also increased its pre-inspection service for cars held by authorised motor dealers – details are at the following links: https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/authorised-dealers-and-processes/pre-inspection-by-national-car-testing-service-ncts.aspx and https://www.ncts.ie/1155. The registration service offered to authorised dealers on the Revenue Online Service (ROS) for new cars and cars that have been pre-inspected has remained unchanged since the original restrictions in March and such vehicles may be registered in the normal way before delivery to a customer.
Overall, Revenue is satisfied that the service being provided at present is reasonable in the context of the safety protocols that are necessary in NCTS Centres.
