Revenue has clarified how people will be expected to pay back any money owed.
People will have as much as five years to pay off any income tax due this year if they've been on COVID wage supports.
Revenue has outlined the details of how people will be expected to pay back any money owed.
Usually, any income tax or USC is taken out before you ever get your wages. However, this didn't happen with the pandemic unemployment payment or wage subsidy scheme, largely due to how quickly the supports were brought in.
So if you've been on one of these payments, you may owe tax to the government.
NEW: Minister Paschal Donohoe says the Covid Wage Subsidy Scheme tax liability can be paid off over 4 years. No interest will be charged. You can pay it off up front on a single payment. And it won’t kick in until...2022. @Paschald @NewstalkFM
— Shane Beatty ? (@ShaneBeattyNews) September 25, 2020
In January next year, everyone will be presented with a statement saying whether you've paid enough tax, overpaid or underpaid.
If you do get landed with a bill, Revenue are being flexible with how it's paid. You can pay it fully or partially off in January if you've been putting money aside or have some savings to do so.
If not, then the money will be taken out of your tax credits, interest-free, over a four year period starting in January 2022.
Revenue expects this to ease the hardship for anyone landed with a big tax bill in January and the government doesn't expect the reduced tax take to have a massive impact on the projected tax taken in for 2021.
