Revenue has issued guidance confirming that paid Paternity Benefit which was introduced in respect of births and adoptions which occur after 1 September 2016 is chargeable to income tax. Where possible, the tax will be collected by adjusting the tax credits and rate bands and an updated certificate of tax credits and rate bands will issue to the person’s employer.

Revenue Tax and Duty manual has been updated to provide additional guidance and Revenue eBrief No. 14/2017 contains further details.