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Ireland Ends Revenue Job Assist Scheme

Thursday, 11 July 2013   (0 Comments)
Posted by: Author: Jason Gorringe
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Author: Jason Gorringe

The Irish Government is to scrap its Revenue Job Assist Scheme, under which employers were able to claim extra tax deductions for hiring the long-term unemployed.

Finance Minister Michael Noonan has signed Regulations ending the scheme for any employments commencing on or after July 1.

Under Job Assist, businesses were able to apply for a "double wages deduction" when calculating taxable income if they took on someone who had been unemployed for at least 12 months. The deduction could last for up to three years, and applied to wages paid to an eligible employee in "qualifying employment," and to employer's pay-related-social-insurance (PRSI) contributions paid in respect of such wages. There was no limit to the number of "qualifying employees" a business could have.

In the case of a sole trader, liable to income tax at 41 percent, and paying a qualifying employee a EUR30,000 (USD38,525) salary each year for three years, the total saving to the employer over that period would have been EUR81,733.50. The saving for a business liable to corporation tax at 12.5 percent, and paying an employee the same amount each year, would have been EUR24,918.75.

Tax relief will continue to be available under Job Assist for successful claims processed for employments that commenced on or before June 30.

The scheme is being replaced by a new grant-based incentive for employers who hire individuals who have been unemployed for a year or more. Under the so-called "JobsPlus" deal, employers will receive regular cash payments to offset wages. Noonan has confirmed that, pending the passage of the relevant legislation, these grant payments will be exempt from income tax and corporation tax..



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

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