Covid-19 Unemployment Relief Payment
TD Marian Harkin warned that those receiving the Covid-19 unemployment relief payment may not be fully aware of the tax liabilities involved. All wage subsidy payments issued under the Covid relief scheme will be subject to tax.
The numbers availing of the payment are falling however over one million people have received wage subsidy support during the COVID crisis. A large percentage of these recipients may be required to pay tax on their payments, which will be due at the end of the year. Harkin called for an advertising campaign to raise awareness of the issue and to outline the steps on how to calculate and process the necessary tax via the Revenue website.
Revenue have suggested that unused Tax Credits may help to offset the tax for some recipients. Furthermore, Revenue have outlined that they are willing to “collect tax in manageable amounts by reducing tax credits for a future year or years in order to minimise any hardship”.
If you are in receipt of the Covid-19 unemployment payment and wish to close your claim, follow these steps to do so.