[Ireland] Thousands of workers to be hit by COVID-19 tax bills

Thousands of workers in Ireland who took advantage of State wage subsidies during 2020 will be informed next week by Revenue of any outstanding tax liability associated with those payments. 

The shortfalls could reportedly total more than €1,000 for some employees after the government failed to allow for subsidies to be taxed at source when it rushed to introduce schemes as the coronavirus pandemic took hold in March 2020. As a result, workers who received payments such as the Pandemic Unemployment Payment or Temporary Wage Subsidy Scheme (TWSS), must now arrange to make up any outstanding bills on those payments.

The move from Revenue to collect unpaid taxes comes follows the government disclosure that weaker tax receipts for 2020 - in addition to COVID-19-related spending - are going to drive public finances deep into the red. Exchequer returns for 2020, published by the Department of Finance on January 5, reveal that the budget deficit for 2020 is expected to total €19 billion. In contrast with a €1.4 billion surplus in 2019. The Irish Times has further details of the impending tax bills.

Thousands of workers in Ireland who took advantage of State wage subsidies during 2020 will be informed next week by Revenue of any outstanding tax liability associated with those payments. 

The shortfalls could reportedly total more than €1,000 for some employees after the government failed to allow for subsidies to be taxed at source when it rushed to introduce schemes as the coronavirus pandemic took hold in March 2020. As a result, workers who received payments such as the Pandemic Unemployment Payment or Temporary Wage Subsidy Scheme (TWSS), must now arrange to make up any outstanding bills on those payments.

The move from Revenue to collect unpaid taxes comes follows the government disclosure that weaker tax receipts for 2020 - in addition to COVID-19-related spending - are going to drive public finances deep into the red. Exchequer returns for 2020, published by the Department of Finance on January 5, reveal that the budget deficit for 2020 is expected to total €19 billion. In contrast with a €1.4 billion surplus in 2019. The Irish Times has further details of the impending tax bills.