DUBLIN: About 420,000 workers today will receive tax bills as a result of payments they received under two major COVID subsidy schemes last year. The bill will cover 71% of those receiving a Temporary Wage Subsidy Scheme and 33% of those on a pandemic unemployment payment underpaid tax. 7,06,000 taxpayers will receive a refund.
Revenue says more than 600,000 people underpaid income tax or universal social charge in 2020. One reason for this is that TWSS and PUP payments are not taxed at source. The amount outstanding is €458 million. The Revenue also confirmed that there will be no tax liability this year.
While taxpayers have the option to pay their liabilities in full or in part through their online account of revenue, the government does not even expect people to repay large amounts of tax.
Instead, Revenue has decided to collect the entire remaining liability without interest by reducing tax credits within four years starting January 2022.
From today, all PAYE taxpayers will have access to their Preliminary End of Year Statement. It will be available through MyAccount on the Revenue website.
“This will bring a level of visibility, assurance and certainty to those who were concerned about their end of year position,” said Declan Rigney, Head of Revenue’s Personal Division.