Dáil Éireann - Volume 492 - 09 June, 1998

Written Answers. - Social Welfare Benefits.

103. Ms Shortall asked the Minister for Finance the position regarding taxation on persons in receipt of lone parent allowances who are participating in community employment projects and, in particular, in the case of a person (details supplied) in County Offaly. [13321/98]

[163] Minister for Finance (Mr. McCreevy): I am informed by the Revenue Commissioners that persons in receipt of a lone parent allowance who are participating in community employment projects are chargeable to tax on both incomes. The lone parent allowance is paid in full by the Department of Social, Community and Family Affairs without tax being deducted. To collect the tax due on this allowance, it is necessary to reduce the taxpayer's tax-free allowances by an amount equal to the lone parent allowance he/she receives.

In the case of the particular taxpayer referred to in the Deputy's question, her tax-free allowances are as follows:——


Personal allowance


One parent family allowance


PAYE allowance




Total tax-free allowances



Social welfare lone parent allowance


Net tax-free allowance £1,154 per annum or £22.19 per week.

The balance of the taxpayer's income is liable to income tax at the rate of 24 per cent.