Peadar Tóibín (Meath West, Aontú)
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281. To ask the Minister for Finance if the tax treatment of a term-time worker (details supplied) in education will be examined. [46031/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Department of Social Protection (DSP) payments are generally classified as income and as such are liable to income tax but not Universal Social Charge (USC) and PRSI. This includes Jobseekers Benefit and any weekly payments for adult dependants.

The way in which tax is collected from DSP payments is dependent on whether a person is taxed through the PAYE system or through self-assessment. Where a person has a PAYE source of income only, Revenue reduces his or her annual tax credits and rate band to take account of any taxable DSP payments, thereby ensuring the tax due is automatically collected through the payroll system. I am advised by Revenue that this arrangement was correctly applied to the person concerned while she was in receipt of Jobseekers Benefit.

Revenue has confirmed that it has reviewed the tax record of the person and is satisfied that the correct tax credits, standard rate band and Universal Social Charge (USC) allocations have been applied to her current employment, following notification from DSP that her Jobseekers Benefit claim had ‘closed’. The overpayments that occurred for 2021 will be refunded to her through her payroll. Such overpayments arise where any delay occurs in notifying Revenue that a person has resumed employment and is no longer in receipt of Jobseekers Benefit. Revenue has also confirmed that the person is not exempt from USC as her expected income for 2021 will exceed the exemption threshold of €13,000.00.

Finally, Revenue has advised me that it has already had direct engagement with the person in question and has clarified how the overpayments of tax by her occurred and how the amounts owed to her will be refunded. Revenue also clarified her USC status and provided her with a direct contact should she require any further clarification or advice.