Written answers
Wednesday, 8 May 2019
Department of Finance
Social Welfare Benefits Payments
Willie O'Dea (Limerick City, Fianna Fail)
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184. To ask the Minister for Finance the social welfare payments that are subject to tax and exempt from tax, respectively in tabular form; and if he will make a statement on the matter. [19791/19]
Paschal Donohoe (Dublin Central, Fine Gael)
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Social welfare payments are exempt from USC and PRSI. With certain exceptions social welfare payments are subject to taxation.
Section 126 (6A) of the Taxes Consolidation Act 1997 (TCA), as amended by the Finance Act 2018, sets out certain of those social welfare payments which are exempted from income tax, as follow:
"A payment which is -
(a)described in column (1) of the Table to this section,
(b)paid on the basis specified in column (2) of that Table, and
(c)made by the Minister for Employment Affairs and Social Protection to an individual on or after 1 January 2019,
shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.
| Description of payment | Basis on which payment is made |
|---|---|
| Basic supplementary welfare allowance | Section 189 of the Act of 2005. (The Social Welfare Consolidation Act 2005.) |
| Back to education allowance | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to education allowance’ |
| Back to work enterprise allowance | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to work enterprise allowance’ |
| Back to school clothing and footwear allowance | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to school clothing and footwear allowance’ |
| Carer’s support grant | Section 225 of the Act of 2005 |
| Constant attendance allowance | Section 78 of the Act of 2005 |
| Death benefit - funeral expenses | Section 84 of the Act of 2005 |
| Death benefit - orphans | Section 83 of the Act of 2005 |
| Direct provision allowance | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Direct provision allowance’ |
| Disability allowance | Section 210 of the Act of 2005 |
| Disablement gratuity | Section 75(8) of the Act of 2005 |
| Domiciliary care allowance | Section 186F of the Act of 2005 |
| Exceptional needs payment | Section 201 of the Act of 2005 |
| Farm assist | Section 214 of the Act of 2005 |
| Fuel allowance | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Fuel allowance’ |
| Guardian’s payment (contributory) | Section 130 of the Act of 2005 |
| Guardian’s payment (non-contributory) | Section 168 of the Act of 2005 |
| Household benefit package | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Household benefit package’ |
| Humanitarian assistance payment | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Humanitarian assistance payment’ |
| Jobseeker’s allowance | Section 141 of the Act of 2005 |
| Jobseeker’s transitional payment | Section 148A of the Act of 2005 |
| Medical care | Section 86 of the Act of 2005 |
| Part-time job incentive scheme | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Part-time job incentive scheme’ |
| Rent allowance | Section 23 of the Housing (Private Rented Dwellings) Act 1982 |
| Supplementary welfare allowance | Section 198 of the Act of 2005 |
| Telephone support allowance | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Telephone support allowance’ |
| Training support grant | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Training support grant’ |
| Urgent needs payment | Section 202 of the Act of 2005 |
| Widowed or surviving civil partner grant | Section 137 of the Act of 2005 |
| Working family payment | Section 228 of the Act of 2005 |
| Youth employment support scheme | A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Youth employment support scheme’ |
In addition to the payments set out in the table above, there are specific other exemptions provided for in the Taxes Consolidation Act 1997. These specific exemptions are as follow:
| Child Benefit (exempt under section 194 TCA). |
|---|
| The Back to Work Family Dividend (exempt under section 194B TCA). |
| Jobseekers Benefit payable to a person in systematic short-time employment (exempt under section 126 (3)(c) TCA ). |
| The first €13 per week of the aggregate of the amounts of Jobseekers Benefit payable to an unemployed person (Section 126 (4) TCA). |
| Any element of Illness, Jobseekers Benefit, Injury Benefit or Pay-Related Benefit payments which relate to amounts in respect of dependent children Section 126 (3) (a) TCA . |
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