RDF Tax Credits

[SwiftandSure]

Right lads,

I've sat on this idea for a while, not knowing whether or not to put it up for debate; but I'm just thinking "fúck it" today. I sent this to the RDFRA a while back and it was received with interest. Of course, like most things in the DF, I don't expect any feedback to happen in a short space of time, particularly with a VFM audit ongoing.

This mail was sent to the RDFRA after I got pissed off at only getting paid €194 for a 7 day's FTT with the RDF. The initial idea was to abolish taxing the RDF, but then after some discussion with various people, this idea blossomed.

In a nutshell the idea is to award tax credits to professional RDF troops as an incentive to continue serving. Whilst I don't think it directly impacts the DOD's spending, there will be an impact to PAYE revenue, albeit small.

Please see the attachment and let me know what you think. (you might want a cup of tea for this one, it's a biggy )

[ollie]

all the kisses at the end might not be a good idea. But seriously its a noble idea although probably a little unworkable.
It would need a more effective way of accounting for who put what hours in and then the Rdf would have to talk to pay section who would have to talk to revenue . Everyone knows that parade books can be amended or "edited" . I even know someone who was listed on annual camp without ever been near the place.

But its a good idea that could be tweaked or studied if the powers that be can be made to see its potential.

[SwiftandSure]

I hear what you're saying Ollie, and it is very much a concept at the moment. I went with the "per day" example to to get the ball rolling. But it could work on the same vein as Grat, i.e. 7 days FTT equals €x and 14 days FTT equals €y. Which is a lot easier to manage.

[DeV]

Sorry but I wouldn't waste you time, if anything they will say we want the other €194!

I don't earn enough to be in the high tax bracket so I transfer some of my tax bracket, I claim my union subs tax credit for RDFRA.

As far as DOD is concerned they will probably not want anything to do with it, they told RDFRA that employment protection was a matter for Dept of Enterprise, Trade & Employment (note not that we will go to DOETE and see what they say).

[SwiftandSure]

It'll also probably only for for a year in arrears, i.e. this year you get extra tax credits for mandays expended last year.

That's the idea Kermit, it's a carrot, whilst the tax year is the stick

[SwiftandSure]

Sorry but I wouldn't waste you time,

Actually DeV, what's a waste of my time is parading at every opportunity with an organisation that is systemically flawed by back seat negativity like yours for little reward other than the love of solidering.

I don't earn enough to be in the high tax bracket so I transfer some of my tax bracket, I claim my union subs tax credit for RDFRA.

Well I'm glad you're alright Jack.

[luchi]

Well I am in the high tax band and pay full wack on the lot.

But what I don't understand is if you decide to work part-time why should the revenue treat you differently to anyone else double jobbing?

[DeV]

Actually DeV, what's a waste of my time is parading at every opportunity with an organisation that is systemically flawed by back seat negativity like yours for little reward other than the love of solidering.


Well I'm glad you're alright Jack.

Everyone calls me negative..... I'm realistic (unfortually).

But what I don't understand is if you decide to work part-time why should the revenue treat you differently to anyone else double jobbing?

Exactly!

[hptmurphy]

But what I don't understand is if you decide to work part-time why should the revenue treat you differently to anyone else double jobbing?

I hear what you are saying but add up all the hours you give annually and now divide them into the payment you receive and work out how much you are worth.

Now you pay tax on that related to your civilian employment which in most cases has no bearing on your military status and now take on the grief stress and aggravation thats heaped on you at middle management level by those on high who live in fantasy land.

Do you get VFM from the RDF?

I like the idea of tax credits for the secondary income and back to a favourite of mine, reduced RSI rates to make it beneficial for employers to employ reservists.

[luchi]

Do you get VFM from the RDF?

Yes. And I was not able to attend FTT so I get no grat even though I have fulfilled all other requirements.

I like the idea of tax credits for the secondary income and back to a favourite of mine, reduced RSI rates to make it beneficial for employers to employ reservists.

I like the idea but that wasn't my question.

[Buck]

I think its a good idea SaS, it needs to be fitted around some corners and it needs to be looked at by those who matter and even if they do see it, I'm not sure they'll agree too it. It dosen't apply to me being a student but I can see how it affects some people. Unfortunately, the employment protection is a must too but that wont be agreed on either

[SwiftandSure]

But what I don't understand is if you decide to work part-time why should the revenue treat you differently to anyone else double jobbing?

But we're not really part-time, if I got paid for my weeknights, weekends, and all FTT, I wouldn't feel obliged to think up mad ways to entice people into the service, because there'd already be a monetary incentive, and I don't mind taking the tax hit then.

But as stated in the piece, €400 and change for a year's commitment is hardly adequate renumeration for such dedication. Put it this way, I'm a telecom engineer, my job is being sat at a desk most of the day and getting paid well enough for it. Had I not already been in the army, why else would I want to offer my telecom skills to a CIS unit, busting my hole all weekend for the RDF whilst being treated like cattle when I can earn more money just being sat at home on call? Where's the incentive?

The RDF are in a unique position in terms of employment. The DF's Pvts wage on it's own is fine, if that's all you earn, but it's not worth much to a qualified engineer, lawyer, EMT, technician who's on the upper tax limit. Why lose your free time and risk injury for an organisation that isn't prepared to offer you anything in return.

A small €20 tax credit is huge saving compared to a full day's pay for parading at the weekend, and is just the sort of incentive that appeals to professionals across the board, whilst not upsetting the PDF, because we're not getting paid any more than they are in a day.

Besides, you mentioned in the Future of the RDF thread there Luchi about working part time for Dunnes. Would you work part time (one night a week, and one weekend a month, and 7 full days) for Dunnes if you only got paid for the one week of the year, yet still took a 41% tax hit on that pay? I doubt it.

[DeV]

But we're not really part-time, if I got paid for my weeknights, weekends, and all FTT, I wouldn't feel obliged to think up mad ways to entice people into the service, because there'd already be a monetary incentive, and I don't mind taking the tax hit then.

Try ringing Revenue and see how you get on
We are casual workers and are obliged to pay tax on any earnings.

busting my hole all weekend for the RDF whilst being treated like cattle when I can earn more money just being sat at home on call? Where's the incentive?

Exactly!!! But the treatment is more important than pay IMHO

Besides, you mentioned in the Future of the RDF thread there Luchi about working part time for Dunnes. Would you work part time (one night a week, and one weekend a month, and 7 full days) for Dunnes if you only got paid for the one week of the year, yet still took a 41% tax hit on that pay? I doubt it.

Minister's & DOD's stance is that we are "volunteers"..... Revenue stance is we are employees (or be it casual)!

[SwiftandSure]

I never said the timing was favourable for this idea, especially seeing as we're balls deep into a recession.

But the point is that the RDF needs to be more appealing to the professional masses, whilst still trying to be VFM. I think the proposal offers a good compromise to all parties concerned.

[ZULU]

Great effort put into the proposal. Interesting ideas too. Good effort