Covid 19 temporary wage subsidy tax

VonLuck

Does anyone know what happened with the tax liability associated with the Covid 19 temporary wage subsidy? It was my understanding that anyone who was in receipt of this would have to repay an element of tax over a period of time. Has this been scrapped? It's very strange that I've heard nothing about it in the past couple of years despite it being a big deal at the time.

Revenue are writing to paye taxpayers to complete income tax returns for these periods, and recoup any taxes owed by reducing tax credits over the next 4 years.

It's not being written off by Revenue that's for sure.

VonLuck

https://www.boards.ie/discussion/comment/120582747#Comment_120582747

Where did you read that and when is it due to happen? I would guess that there are a lot of people out there who have forgotten about this tax liability or else just didn't know in the first place. It'll come as quite a shock if they suddenly owe additional tax.

https://www.boards.ie/discussion/comment/120583773#Comment_120583773

https://www.revenue.ie/en/jobs-and-pensions/twss/tax-liability.aspx

Madd002

It's very simple your preliminary tax cert would've been uploaded in January of each year replacing P.60's and then it is up to you to look at, check income/ tax credits were correct. if you had any medical receipts to claim you would then amend and return a final account it would then be submitted and refund done if you were due any tax back. Then your Tax cert will be available similar to p-60. The preliminary tax cert was 1st issued in Jan 2021 for the 1st time. It showed I owed 300 for the pandemic payment and 75 would be taken off each year over 4 years, now you can go back 4 years and seeing as this was only 2 years ago it will show income received from pandemic payment on you preliminary tax return and how much you owe. As it was preliminary they are probably already taking what's owed but it is up to you to do your own taxes.Hope that helps.

Geuze

https://www.boards.ie/discussion/comment/120583773#Comment_120583773

Surely as people file their regular Form 12 tax returns, this issue will be dealt with?

Or else coded into tax credits?

Lenar3556

Revenue wrote to most in 2021 advising of the liability and providing an option to pay the amount due or do nothing and have it factored into tax credits over the following 4 years

VonLuck

https://www.boards.ie/discussion/comment/120585628#Comment_120585628

I never received a letter to say what was due or how to pay it. If I had the option to pay it immediately I certainly would have.

https://www.boards.ie/discussion/comment/120584791#Comment_120584791

That doesn't sound simple at all! I'm not from a financial background and have never needed to interrogate my tax cert, or at least didn't believe I needed to. I've been receiving the same take-home pay (or at least the expected amount) each year since so I assume they've not taxed me. Is it my responsibility to notify them of their error?!

https://www.boards.ie/discussion/comment/120586130#Comment_120586130

Check your tax credit certificate first before notifying them of anything. Also check your statement of liabilities for the last couple of years.

All of these can be found in your Revenue MyAccount.

VonLuck

https://www.boards.ie/discussion/comment/120586150#Comment_120586150

Will do, thanks. I'd be surprised if even 5% of the population are aware of this.

Madd002

https://www.boards.ie/discussion/comment/120586130#Comment_120586130

Sorry, I get same wage same deductions etc. as well, but we all knew we were gonna be taxed on pandemic payment and it is up to you to make sure your tax affairs in order. I know this as a few years back my LPT from 2013 was deducted from my wages and whatever happened it didn't actually apply to my account when my employer did their year end returns, it returned to employers bank and they thought it was a revenue refund and never looked into why they received it. I only spotted it when I logged on to revenue in 2019 and looked at all my paperwork. It was then up to me to sort out after I spotted discrepancy, Employers had to then pay the full amount on my behalf. So I'd login to your revenue account as previous post said and look at your tax credits first and see what deductions are being made.

Madd002

https://www.boards.ie/discussion/comment/120587506#Comment_120587506

See example of mine. If you dont see PAYE underpayment you probably owe them nothing and your unused tax credits for that year balanced out.

relax carry on

https://www.boards.ie/discussion/comment/120587447#Comment_120587447

Its been repeatedly talked about in the papers and radio for the last few years. Considering the rather large increases in PAYE returns being filed each year your 5% figure might be way off.

https://www.independent.ie/irish-news/revenue-issues-warning-letters-to-250000-workers-in-bid-to-recoup-95m-owed-from-covid-wage-supports/42120489.html

https://www.rte.ie/news/business/2021/0115/1189820-explainer-why-am-i-being-hit-with-a-tax-bill/

https://www.irishtimes.com/ireland/2023/01/23/revenue-reports-steep-rise-in-number-of-income-tax-returns-by-paye-workers/

VonLuck

https://www.boards.ie/discussion/comment/120587896#Comment_120587896

I don't read the newspapers nor do I listen to the radio! I am fully aware of the tax liability, hence this post, and I set aside some money at the time in preparation for it. It was certainly talked about at the time, but I've spoken to a lot of people about it recently and the general response was that they forgot about the whole thing and assumed no tax deductions were going to happen.

Also for your average, non-financially literate person, I imagine it will be somewhat difficult for them to understand what needs to be done. I would consider myself somewhat responsible in that regard, but I still had to go searching and make a topic to figure out what's needed of me!

Citrus_8

https://www.boards.ie/discussion/comment/120588025#Comment_120588025

Oh dear, so difficult to be a responsible adult human being, isn't it? This is the problem of our society - people want things to be done for them. I think, it's party because of a customer culture as a result of retail and hospitality spoiling the customers who them become children wanting to get things done for them and if not, complaining and finding excuses to blame others. We just need to suck it up and realise that sometimes we just need to put more effort and be more aware about the surroundings (and filter the information is around as some of it is actually useful to us).

If we had a better education system and our parents wouldn't spoil us too much, we would be more aware and more responsible for our own lives.

VonLuck

https://www.boards.ie/discussion/comment/120588984#Comment_120588984

What kind of nonsense are you spouting? Clearly you have a chip on your shoulder about something.

I suppose you'd also prefer the American way of everyone doing their own tax returns each year? You know, so that everyone can be responsible for their own lives.

I don't think it's unreasonable to suggest that if some form of taxation is imposed onto an individual, through no action or fault of their own, that it should be an automatic process for it to be deducted from their monthly pay slip. I examine my own taxes year to year, but I'd find it hard to believe that your average person would do this.

miamee

Thanks to this thread I went and checked my Tax certificates and it looks like I have been paying PAYE underpayment for the past 2 years. Glad to know it's all in hand, I had elected not to pay the lump sum hoping that I would be in a better financial position by the time they were spreading the payment over 4 years via tax and it was the right way to go for me. I guess for most people it is happening without them even really realising it if they don't tend to look at or check their documents.