Returning to work after baby & PUP

ZiggyDean

Hi all

I was made redundant during Covid and also had a baby. I was able to be on both maternity leave and PUP.

We spent a lot of time in hospital and now finally we are well enough for me to go back to work.

Will my pay be very badly affected by the reduced tax credits does anyone have experience of this?

Thanks so much

Dempo1

Hi and congratulations 😁

Unfortunately, yes and you'll probably be on emergency tax initially. It's very complicated to explain but essentially to discharge your tax liability whilst on PUP , Revenue gave a few options, Pay the liability in a lump sum or have your TFA reduced over a number of years.

There's also been delays in DEASP notifying Revenue when people close PUP claims so I'd definitely contact Revenue immediately on starting new job.

I'm no tax expert so might be worth asking in the Taxation forum , some very good advice there.

There's a link I'll attach for you to look at also

https://www.revenue.ie/en/life-events-and-personal-circumstances/pup-tax-liability/process-when-pup-payments-have-ended.aspx

.Good luck with new Job 😏

ari101

Maternity benefit is paid at a rate such that standard tax bands and credits fully cover the tax owed if you were not in receipt of any other income in the same period.

If you have standard credits and bands and spent a whole tax year (e.g. 2021) on PUP only you would likely owe revenue about 340.

350*52*20% less 3300 = 340

If you don't have standard bands/credits, e.g. are married and your husband was utilising your tax credits and bands to reduce his own tax, the debt could be higher, but revenue might have deducted from his credits and bands to cover it.

You should go onto Revenue MyAccount and have a look at your preliminary statement of liability for each year. You should be able to see if Revenue have all the benefits recorded and whether they estimate money owed.

Dempo1

https://www.boards.ie/discussion/comment/118763269#Comment_118763269

Better explained than I could have 👌