Tax on social welfare payments if no P21 requested?

S

Sedgex

Registered User
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Hello,

As you are likely aware, social welfare payments are paid gross, but are actually taxable. This may result in a person owing tax to revenue after year end if/when requesting a P21.

Question: If a person does not request a P21 after the end of the tax year, does this mean revenue will not come claiming the tax owed?

Thanks.
 
Hello,

I think they are likely to come knocking !

The social welfare office and Revenue now exchange information far more frequently than before. So welfare may have already notified Revenue, so Revenue may adjust tax credit and rate bands to collect tax in current year or even to collect back tax .. or they could ask for cheque with the issue of P21..
 
All”income” is potentially subject to Income Tax. But if your only income is Social Welfare payments then you won’t be liable to any tax.
Certainly Social Welfare office and Revenue do now talk to each other. So if you combined income (including SW) exceeds the Income Tax threshold, then you will have a tax liability which you can solve by either making a tax return at the end of the year or have your tax credits adjusted.
 
Thank you. However, I may be in the situation that I will need to leave Ireland because of health issues (need to return to home country) before the end of the year. Our combined income (wife + myself) does exceed Income tax threshold. If I leave Ireland and make no tax return (I am PAYE worker), I am wondering how and if the revenue will come looking for tax on social welfare received, if I don't request a P21. Do they balance our accounts automatically themselves?

Thank you.
 
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