Tax reliefs - huge decrease !

D

deco87

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On a state pension and I have a job 25 hours a week. As I cannot work until the schools return - i am on PUP.
I got my usual tax bands allocation a week ago - which was grand - I paid my full tax liability for 2020- few weeks back.
Today out of the blue i got a tax credit and universal social change cert - FOR period 5 FEB 21 to 31 DEC 21-
My rate band 1 is decreased by DSP PUP PAYMENT 18200. With a band 1 credit reduction - of 1.700.so it’s 15.400.
I now will be paying tax at 40 % income over 15400.
My pension tax relief monthly was 2.409 last year it’s now 1.283-
I’m lost completely !!! All I can see is a serious reduction in my net income - any ideas ! I expect to be back working when schools open shortly -

presuming 18200 divided by 52 being 350 is the PUP for the year even though it won’t exist mostly likely in the summer
 
Hi, yeah i was in a panic as we got our latest tax cert the wknd but someone explained that once you're back working you'll be sent an updated tax cert. The one you got the weekend is based on you staying on the PUP for the year.
 
What state pension are you getting?

This page lists the SW payments that can be paid in addition to PUP.

S.I. No. 573/2020 - Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 16) (Covid-19 Pandemic Unemployment Payment – Ancillary Provisions) Regulations 2020

The electronic Irish Statute Book (eISB) comprises the Acts of the Oireachtas (Parliament), Statutory Instruments, Legislation Directory, Constitution and a limited number of pre-1922 Acts.
www.irishstatutebook.ie

State pension (contributory or non-contributory) is not on the list.
 
gipimann said:
What state pension are you getting?

This page lists the SW payments that can be paid in addition to PUP.

S.I. No. 573/2020 - Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 16) (Covid-19 Pandemic Unemployment Payment – Ancillary Provisions) Regulations 2020

The electronic Irish Statute Book (eISB) comprises the Acts of the Oireachtas (Parliament), Statutory Instruments, Legislation Directory, Constitution and a limited number of pre-1922 Acts.
www.irishstatutebook.ie

State pension (contributory or non-contributory) is not on the list.
Click to expand...

PS pension, I would guess.
 
deco87 said:
My rate band 1 is decreased by DSP PUP PAYMENT 18200.
Click to expand...

Yep, I got the same and it appears that they are recouping the tax I owe on the PUP in total within 2021. Which as far as I can see does not reconcile with what they have on their site re. owed IT on PUP.

Taxation of the Pandemic Unemployment Payment (PUP)

Taxation of the Pandemic Unemployment Payment (PUP)
www.revenue.ie www.revenue.ie

What happens if you owe IT?
You can either fully or partially pay any IT liability through the 'Payments/Repayments' facility in myAccount.
Alternatively Revenue will collect the full or any remaining liability, interest free, by reducing your tax credits over four years (2022 to 2025).
The reduction of tax credits will start in January 2022.

I have contacted them and await their reply.

EDIT:- Now that I think about it, I suspect that this is revenue's method of collecting the tax owed on PUP for 2021, ie. 350 X 52 = €18,200.
If it stops in March or is adjusted then expect a revised cert.
 
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Yup public service pension - it seems this is the situation alright - revenue presuming covid will run for 12 months - when the dogs in the street know it’s near an end- I think they have an awful cheek - I wanted to pay by bank transfer what I owed them - like liability I paid for 2020
 
SparkRite said:
Yep, I got the same and it appears that they are recouping the tax I owe on the PUP in total within 2021. Which as far as I can see does not reconcile with what they have on their site re. owed IT on PUP.

Taxation of the Pandemic Unemployment Payment (PUP)

Taxation of the Pandemic Unemployment Payment (PUP)
www.revenue.ie www.revenue.ie

What happens if you owe IT?
You can either fully or partially pay any IT liability through the 'Payments/Repayments' facility in myAccount.
Alternatively Revenue will collect the full or any remaining liability, interest free, by reducing your tax credits over four years (2022 to 2025).
The reduction of tax credits will start in January 2022.

I have contacted them and await their reply.

EDIT:- Now that I think about it, I suspect that this is revenue's method of collecting the tax owed on PUP for 2021, ie. 350 X 52 = €18,200.
If it stops in March or is adjusted then expect a revised cert.
Click to expand...
I paid it off by bank transfer 2020 liability hence the shock when I saw all these changes for 2021
 
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