Donegal TD calls for online tax calculator for Wage Subsidy Scheme
Since the Wage Subsidy Scheme was introduced there have been mounting fears that workers will face a tax bill at the end of the year.
Sinn Féin spokesperson on Finance Pearse Doherty TD is calling on the Office of the Revenue Commissioners to help clarify the issue. He wants Revenue to set up an online tax calculator for the 568,000 employees who received payments through the scheme.
Deputy Doherty said: “These payments are subject to income tax and to USC. Since this tax is not being paid in real-time, Revenue has said that these workers will be liable for tax by way of review at the end of the year.”
Revenue has said that this liability will be offset against any unused tax credits for 2020.
But according to Deputy Doherty, a worker receiving subsidy payments of €410 per week for 22 weeks is likely to have a tax liability in excess of €1,900. However, unused tax credits would amount to less than €1,400.
“Workers on the scheme need certainty in relation to their total tax liability and how it will be collected,” said Deputy Doherty. “At present, workers don’t know whether they will be required to make a lump sum payment at the end of the year.
“Any tax liability in excess of unused tax credits should be spread out over a sufficient length of time to provide certainty to workers.
“I have suggested that Revenue set up an online tax calculator for workers on the Wage Subsidy Scheme, providing their tax liability for subsidy payments, the amount of tax that will be offset by unused tax credits and how any excess liability will be treated in the year ahead.”
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