Social Welfare Payments paid in later tax year

S

SGWidow

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Say someone was due SW payments in 2019 but due to admin issues the relevant payments are just being processed now as a lump sum.

For tax purposes - for a PAYE taxpayer - presumably the back payment now is deemed as income in the 2021 tax year?
 
I would opt for whichever minimises your tax bill - Revenue allowed me to backdate payments to a previous year and submit an amended Income Tax Return for the year in question.

You need to calculate if it saves you tax or not
 
This is a bone of contention. As far as Revenue is concerned if DEASP says they were for 2019, then they should be taxed as income in 2019. It breaks their other PAYE rules of for taxing payments as per their Pay Date.
 
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