Revenue Job Assist is an additional tax allowance for people who have been unemployed for 12 months or more and who are now returning to employment. An extra tax allowance can be claimed for each qualifying child (see below). The tax allowance can be claimed for 3 tax years and may begin with either the tax year in which the employment commences or the following tax year. The scheme is an alternative to existing employment schemes and you cannot claim these tax allowances if you are participating in another employment scheme.
Revenue Job Assist ceased on 30 June 2013 for new participants. Since I July 2013 a new JobsPlus incentive scheme has replaced Revenue Job Assist and the Employer Job (PRSI) Exemption Scheme. Existing participants on Revenue Job Assist will not be affected by the new JobsPlus scheme.
You may qualify for Revenue Job Assist (RJA) if you are unemployed for 12 months or more* and you are:
*Time spent on Community Employment, Job Initiative, Tús, JobBridge, Rural Social Scheme, certain FÁS courses or the Back to Education Allowance (BTEA), provided you were getting one of the qualifying payments listed above immediately before starting BTEA, may count towards the period of unemployment required.
The job you are taking up must:
You can find more details in the explanatory leaflet, Revenue Job Assist IT58 - information for employees.
Revenue Job Assist only applies if you are taking up a job and does not apply if you are becoming self-employed. It can only be set against income from the new job that you have taken up. You can change jobs once and retain the balance of the credit. The tax allowance can be claimed irrespective of your civil status.
A qualifying child is a child of yours, who is living with you for all or part of the tax year, and who is:
Two people can claim for the same child but only one allowance can be claimed for each qualifying child in any year. If 2 people are entitled to claim for the same child, the allowance is split between them as follows:
In addition to the special tax allowance, under Revenue Job Assist, you can keep your medical card for 3 years from the date of return to work. You can also retain other secondary benefits, such as Fuel Allowance, for 3 years, provided your weekly income is less than €317.43. However the amount of Rent Supplement or Mortgage Interest Supplement you get may be reduced.
Employers who employ people who qualify for Revenue Job Assist can make a double deduction of the employee's wages from their company's taxable income for up to 3 years provided that the employee remains with them. This means that double the amount of the wages of a qualifying employee and double the amount of the employer’s PRSI contribution for that employee can be deducted by the employer from the company’s taxable income.
An employee who started work in January 2011 is paid €350 a week, (€18,200 a year) and qualifies for Revenue Job Assist. If that employee continues to work for the employer until the end of 2013, the employer can reduce his taxable income by double the amount of the employee’s wages and double the amount of employer’s PRSI as follows:
|Employee’s annual wages = €18,200 x 2||€36,400|
|Employer’s annual PRSI 2011 = €1,547 x 2||€3,094|
|Total annual tax deduction 2011||€39,494|
So in 2011 under Revenue Job Assist the company’s taxable income may be reduced by €39,494. In 2012 and 2013 it may be reduced by €37,947 each year. This would come to a total tax deduction of €115,388.
Employer's PRSI exemption: If you take on extra employees under the Revenue Job Assist scheme in 2012, you may qualify for the Employer Job (PRSI) Incentive Scheme for up to 18 months.
The Revenue Job Assist allowances are at your highest rate of tax and appear as an increase to your tax credits as follows:
|Year One:||extra allowance of €3,810 and €1,270 for each qualifying child|
|Year Two||reducing to two-thirds of this amount, that is, €2,540 and €850 for each child|
|Year Three||one-third of amount allowed in year one, that is, €1,270 and €425 for each child|
You can start to claim the tax allowances either in the tax year you take the job or in the following tax year.
You apply by completing Part 1 of form RJA (pdf). This form is also available from your local tax office. Part 2 of the form must completed by your employer and the completed form should be sent to your local tax office.
Contact your local tax office.
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 8pm) or you can visit your local Citizens Information Centre.