Off-the-job training payments made to craft apprentices by the Education Training Boards (ETBs) are chargeable to tax under Schedule E (taxed through the PAYE system) by virtue of Section 19 of the Taxes Consolidation Act (TCA) 1997, on the basis that the ETBs are paying a stipend to the apprentices out of public revenues of the State.
I am advised by Revenue that in 2021 payroll submissions made through the PAYE system show off-the-job training allowance payments in respect of 8,249 craft apprentices. The average amount of tax paid in 2021 by a craft apprentice in respect of off-the-job training allowance payments was €773.
It should be noted that the amount of tax paid by a craft apprentice is dependent on the quantum of the allowance payment, his/her own personal circumstances and the tax credits available and allocated to their employment while on off-the-job training.