People across Donegal to receive tax bills today for Covid payments

People across the county will be issued with tax bills today as a result of payments they received under the two main Covid subsidy schemes last year. However, it is worth noting that Revenue has confirmed that this tax liability will not be due this year.

Underpaid

Approximately 71% of those in receipt of the Temporary Wage Subsidy Scheme (TWSS) and 33% of those on the Pandemic Unemployment Payment (PUP) underpaid tax - and will receive a bill. Recent data released by Revenue shows 80% of taxpayers' statements are balanced, overpaid or underpaid by less than €200, while 706,000 taxpayers are due a refund, according to RTÉ.

In total, over 600,000 people underpaid income tax or universal social charge in 2020. This is partly due to the fact that the TWSS and PUP payments were not taxed at source. The amount outstanding is €458 million.

Payment 

While Revenue has confirmed that this tax liability will not be due this year, the option is available for taxpayers to fully or partially pay any liability through their online account with Revenue. People are not expected to make a lump sum payment.

Instead, Revenue will collect the full or any remaining liability, interest free, by reducing tax credits over four years, starting in January 2022.

All PAYE taxpayers will have access to their Preliminary End of Year Statement, which will be available through MyAccount on the Revenue website, from today, Friday.