I heard tax credits are changing due to the COVID-19 Wage Subsidy Scheme. What do I need to do?

The COVID-19 Wage Subsidy Scheme is not taxed in real time through the PAYE system but will be subject to Income Tax in the hands of the employee through an end of year review.

In light of the extension of the wage subsidy scheme to August, and in order to minimise the amount of tax owing by employees at the end of the year, all employees who received at least one payment under the COVID-19 Temporary Wage Subsidy Scheme or the Pandemic Unemployment Payment (PUP) will be placed on a Week 1/Month 1 basis going forward.

Employees tax credits have been updated and are now available for all employers. 

Employers need to ensure that they are using the latest Revenue Payroll Notification (RPN) for each employee when processing payroll going forward.

Published 24/06/2020

 

Date published 24 Jun 2020

This 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.