Robert Troy (Longford-Westmeath, Fianna Fail)
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182. To ask the Minister for Finance if he is aware of the current situation surrounding the tax status of tutors, whereby many of them may now be faced with large tax bills; and his plans to deal with this. [20772/16]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the tax position of home tutors who, prior to September 2015, were paid by parents from grants paid to them by the Department of Education and Skills.  I am advised by the Revenue Commissioners that, in the context of an audit over the last few years, it was determined by Revenue that these home tutors are employed under a contract of service i.e. they are employees.  They are engaged by the parent(s) subject to satisfying criteria specified by the Department of Education and Skills.

As a consequence of the Revenue audit, the Department of Education and Skills agreed to operate the PAYE system on payments to home tutors. This facilitates ease of administration, as the payments originate from the Department. It also avoids placing on each individual parent the obligation to register as an employer and to operate the PAYE system in respect of the relevant payments.

There is no obvious reason why these home tutors should be experiencing larger tax bills as a result of this treatment as the relevant income continues to be subject to tax, as before.  Furthermore, as employees, the tutors are now entitled to claim the PAYE tax credit of €1,650 per annum.