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Received the PUP or the Covid wage subsidy? Next week, you ll find out what income tax you owe
Here’s a quick guide to how the process will work. By Ian Curran Wednesday 6 Jan 2021, 3:54 PM Jan 6th 2021, 3:54 PM 234,054 Views 62 Comments
IT’S BEEN FLAGGED for months but if you received payments under the Government’s Covid income support schemes in 2020, you’ll soon receive some clarity about how much income tax you owe for last year.
The Revenue Commissioners have confirmed that, as is always the case in January, preliminary statements of liability for 2020 will be available to all PAYE workers from next Friday, 15 January.
The hospitality sector has been closed since Christmas Eve.
Mr Varadkar set out a timeline that would see nursing home residents, healthcare staff, very elderly people and those with chronic illness are expected to be vaccinated by the end of March.
He was asked if pubs and restaurants may need to stay closed until then.
Mr Varadkar said the timeline he described is with use of the Pfizer/BioNTech and Moderna vaccines and it could be stepped up more if the AstraZeneca one becomes available.
He said: It s very hard to make predictions and projections. I think any time we do when it comes to Covid there s about a 50pc chance you re going to be proven wrong and this a virus that has torn up our plans on many occasions.
Updated / Wednesday, 6 Jan 2021
12:25
Revenue said despite the challenges brought about by Covid, overall timely compliance rates for 2020 were only marginally down on 2019
Revenue said it collected €56.2 billion in taxes and duties for the Exchequer last year, as well as over €15 billion on behalf of other departments, agencies and EU states after an unprecedented year in terms of disruption and uncertainty.
Revenue today published its preliminary results for 2020 including tax and duty collected, services provided to customers, timely compliance rates and yield from compliance and enforcement interventions.
It said that despite the challenges brought about by the Covid-19 pandemic, overall timely compliance rates for 2020 were only marginally down on 2019.
The payment was put on a statutory footing in August and, like other core social-welfare payments, was made liable for income tax. But the decision to apply this retrospectively between March and August has been heavily criticised, including by the Free Legal Advice Centre, which has questioned whether the move is constitutional.
Q: How much is owed for those who were on the wage subsidy scheme?
Consumer tax manager with Taxback.com, Marian Ryan, said the amount owed will vary from person to person.
“What is owed will depend on their circumstances, their earnings pre- and post-TWSS and if their employer subsidised the TWSS with additional income and topped up the employee’s gross weekly wage.”
The Irish hotel industry may not return to pre-Covid levels of business until at least 2022 as it awaits vaccination programmes to end lockdowns and allow the return of international guests, according to leading executives.
The industry was thrown into fresh turmoil over the festive period after level five restrictions were phased in earlier than planned amid a third wave of Covid-19. From December 27, hotels were only allowed open to essential workers.
Tánaiste Leo Varadkar has warned that restrictions may well last for the first two months of 2021, depending on the speed of vaccinations.
Professor Brian MacCraith, chair of the Government s vaccine rollout taskforce, last week said he hoped that everyone who wants to be vaccinated will have received a vaccine by the end of August.