On 25 September 2026, Revenue issued eBrief No. 138/26 on PAYE treatment of Vocational Training Opportunities Scheme (VTOS) payments. The brief confirms that VTOS training allowances paid by Education and Training Boards (ETBs) are exempt from income tax, USC, and PRSI. However, any top-up payments by employers may be taxable.
Key Takeaways
- Allowance Exemption: Core VTOS allowances are fully exempt from PAYE, USC, and PRSI.
- Employer Top-Ups: Additional payments by employers to participants are subject to standard PAYE deductions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement