Revenue should set up an online tax calculator for workers on the Wage Subsidy Scheme - Pearse Doherty TD
Sinn Féin spokesperson on Finance Pearse Doherty TD has called on the Department of Finance and Revenue to set up an online tax calculator for employees in receipt of payments through the Wage Subsidy Scheme.
He has said that this will help to provide clarity to PAYE workers; many of whom could face a significant tax liability at the end of the year.
Teachta Doherty said:
“Almost 568,000 workers have received payments through the Wage Subsidy Scheme since it was put in place.
“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 for a worker receiving subsidy payments of €410 per week for twenty-two weeks, they are likely to have a tax liability in excess of €1,900, but unused tax credits of less than €1,400.
“Workers on the scheme need certainty in relation to their total tax liability and how it will be collected. 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.”