Suicide prevention: ‘My brother faced stigma, red tape, long waiting times, under-resourced hospitals. In the end it was too much’
Suicide prevention: ‘My brother faced stigma, red tape, long waiting times, under-resourced hospitals. In the...

Amanda Cassidy

This Leeson St home on sale for €2 million is family-friendly but perfect for city living
This Leeson St home on sale for €2 million is family-friendly but perfect for city...

Megan Burns

You will not believe how they made THAT Zendaya Balmain dress
You will not believe how they made THAT Zendaya Balmain dress

Lauren Heskin

If you only see one film in the cinema this year, make it this powerful Irish feature
If you only see one film in the cinema this year, make it this powerful...

Meg Walker

Postpartum Psychosis: ‘It hit me completely out of the blue’
Postpartum Psychosis: ‘It hit me completely out of the blue’

Amanda Cassidy

4 Irish female bosses on getting organised, confidence and the importance of creativity
4 Irish female bosses on getting organised, confidence and the importance of creativity

Shayna Sappington

Two beauty industry stalwarts have teamed up to save cruelty-free cosmetics in Europe
Two beauty industry stalwarts have teamed up to save cruelty-free cosmetics in Europe

Sarah Finnan

Why negotiating a ‘jobbymoon’ before you start your new job is actually a great idea
Why negotiating a ‘jobbymoon’ before you start your new job is actually a great idea

Erin Lindsay

Skin Proud is Glossier’s new 100% vegan and cruelty-free competitor
Skin Proud is Glossier’s new 100% vegan and cruelty-free competitor

Sarah Finnan

The dos and don’ts of supporting someone who might be suicidal
The dos and don’ts of supporting someone who might be suicidal

Erin Lindsay

Image / Agenda / Money

You probably owe a big a tax bill: Here’s why (and what you can do about it)


by Jennifer McShane
25th Jan 2021

Mature woman working from home

blank

With news emerging this week that around 400,000 PAYE workers will face a tax bill in relation to Pandemic Unemployment Payment (PUP) and Temporary Wage Subsidy Scheme (TWSS) payments received during 2020, many people have found themselves owing a chunk of tax they hadn’t necessarily anticipated. Here’s what you need to know


Revenue confirmed that all PAYE workers will receive preliminary end-of-year statements this past week. These will reflect any tax overpayments or underpayments for 2020. Figures show that 660,000 employees who received a TWSS payment last year could be facing a tax shortfall.

Why might I suddenly have a tax bill?

TWSS payments are subject to income tax and USC, and crucially, of which were not taxed by Revenue in real-time through employers. As a result, Revenue will need to collect these outstanding tax payments from employees directly. For PUP recipients, payments are subject to income tax only. Though some have said, taxing the pandemic payment ‘could be unconstitutional’ it looks like payments will still be collected.

How much tax will you have to pay?

It will vary from person to person and their individual circumstances; the exact amount of income tax due will depend on your total income for the year, whether you’re married or single and how long you were on the PUP. What is known is that if your total earnings plus the Covid payment in 2020 are less than €16,500 and you’re a single person, you won’t be liable for any income tax.

After returning to work – if there is any income tax due, Revenue will not collect it in one lump sum. Those affected will have four years to pay the amount owing, starting in January 2022, according to Revenue.  People who have yet to submit returns to Revenue claiming for health expenses, nursing home fees, college fees and additional voluntary pension contributions could yet erase any bill outstanding or even find themselves due a refund when they file a return.

How to pay your Covid tax bill

Workers will have the option to make the payment through the MyAccount section in Revenue’s online system, either in full or through instalments. They can also choose to pay by reducing their tax credits for up to four years. The reduction of tax credits will start in January 2022.

What if I’m self-employed?

Self-employed people in receipt of the PUP are able to earn €960 over eight weeks while also retaining their full entitlement to the payment. They won’t receive a specific tax bill now but will be required to enter the PUP as a taxable social welfare payment on their tax return for 2020 (due before October 2021). Revenue will include this in their income and assess the tax the total income for the year.

Also Read

Meghan and Harry's chief of staff
BREAKING STORIES
Meghan and Harry’s former chief of staff on what it was really like to work for them

The Duke and Duchess of Sussex’s former chief of staff has spoken out about her time working for the couple,...

By Sarah Finnan

blank
BUSINESS
How to deal with failure: 4 tips on how to recover from a setback

Failure is inevitable in life, but while many of us know this deep down, we don’t tend to deal with...

By Colette Sexton

Harry and Meghan
IMAGE WRITES
Of course Harry and Meghan weren’t surprised by Her Majesty’s comments

Prince Harry and Meghan Markle are looking ahead to the future, as they prepare to enter a new “era of...

By Sarah Finnan

blank
BUSINESS
Working from home doesn’t mean you have to be tied to your desk, here’s how you can multitask on the move

This year, we’re asking more of technology than ever before – high-speed, efficiency AND mobility. So we can connect with...

By Melanie Morris

blank
BUSINESS
‘There is no perfect manager’: Cork-born warehouse manager Jacqui Clohessy on instilling confidence in your role and fostering a dynamic team

Jacqui Clohessy is one of the few female warehouse managers in Ireland. Here, she shares what it’s like working in...

By Shayna Sappington

blank
HEALTH & WELLNESS, REAL-LIFE STORIES
James Michael Tyler: Friends’ Gunther reveals cancer diagnosis

With all the talk of the Friends Reunion, one of the stars of the show has urged other men to...

By Jennifer McShane

frostbit
BREAKING STORIES
‘You wouldn’t be long getting frostbit’ is now Ireland’s Forrest Gump

You wouldn’t be long getting hypothermia. Ruairí McSorley, aka the viral Frostbit Boy, has braved the elements again, and once...

By Holly O'Neill