Thousands of workers who received the PUP or COVID wage subsidy payments in 2020 have been slapped with their end of year tax bill today.
Cash strapped employees could face unexpected bills of up to €1000 on subsidy payments that were not taxed by the Government at source.
Tax experts are predicting a raft of calls from people worried about the bills and possibly surprised that they even have one.
“A lot of PUP and TWSS recipients are simply unaware that these payments will have given rise to tax liability and even of those who expected it, many will be surprised as to exactly how much they owe, Marian Ryan, Consumer Tax Manager at Taxback.com explained.
“For many more, the news will simply be the source of anxiety for people who are already financially stretched.”
Revenue has said, however, that workers will not have to pay their tax bill this year or even next year and that lump sum payment is not required.
Instead, what will happen is that Revenue will reduce a person’s tax credits over a period of between two and four years, starting in 2022.
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