Lucinda Creighton (Dublin South East, Renua Ireland)
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67. To ask the Minister for Finance the estimated annual cost to the Exchequer of extending the existing PAYE tax credit of €1,650 to all individuals who currently pay income tax as a self-employed persons. [44462/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy's question refers to the payment of tax as a self-employed person, it is assumed that the Deputy is interested in the additional cost of increasing the Earned Income Credit (EIC) introduced in Budget 2016, from the €550 to €1,650, the level of the existing PAYE tax credit. The Earned Income Credit is available to taxpayers with active self-employed trading or professional income, and to business owner/managers who do not have access to the PAYE credit on salary income from their business. On this basis I'm informed by the Revenue Commissioners that the estimated total first and full year costs of such proposals would be in the order of €37 million and €123 million respectively.

These figures are estimates using data for 2013, the latest year for which data are available. It should also be noted that this estimate does not take into account the fact that very low taxable incomes may not be able to fully utilise the tax credit. It also assumes that the maximum Earned Income and PAYE credit value claimable by a taxpayer with both employment and self-employment income would be €1,650.