18 Feb Taxation of COVID-PUP in 2021 & Week 1 Basis
The long- standing arrangement in place to collect tax, if due, on a range of taxable Department of Social Protection (DSP) payments (i.e. by reduction of a person’s tax credits and rate band) applies equally to the taxation of the COVID-19 Pandemic Unemployment Payment (COVID-PUP) in 2021.
Revenue’s new webpage for taxpayers on Taxation of COVID-PUP provides information on the process for taxing DSP payments as it relates to COVID-PUP in 2021.
Revenue’s webpage reminds employees of their responsibility to inform DSP immediately if they have returned to work. This allows the appropriate revisions to be made to the Revenue Payroll Notification (RPN) available to their employer and to the individual’s Tax Credit Certificate (TCC).
Revenue confirmed that it will be generating revised Revenue Payroll Notifications and Tax Credit Certificates on a Week 1 basis on receiving a claim closure report from the Department of Social Protection. Revenue may revisit all Week 1 cases at some stage, review their situation and if appropriate place the taxpayer back on a cumulative basis.