On 15 January 2021 PAYE workers that were in receipt of the PUP will find out how much tax they owe, and this will need to be paid through a reduction of tax credits in 2022.
If you are self-employed and file a Self-Assessment Tax Return things are a little different!
When you complete your 2020 Tax Return you need to include any income from the Pandemic Unemployment Payment as taxable income.
You can file your 2020 Tax Return from now until the deadline in October 2021. Any tax liabilities for 2020 will also be due at this time.
If you have difficulties paying your 2020 tax bill due to the COVID-19 pandemic you may be able to avail of the Tax Debt Warehousing Scheme or you may be able to agree a phased payment arrangement with Revenue at reduced rates of interest.
Date published 13 Jan 2021This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.