Tax Tips

How Will PUP/EWSS Affect My Tax Refund?

The Pandemic Unemployment Payment (PUP) is officially finished, while the Employment Wage Subsidy Scheme (EWSS) is also ending very soon. You may have availed of one of these schemes, but how will that impact your taxes now and going forward? Find our updated blog here.

CONTENTS
What is PUP?
What is EWSS?
How Are PUP And EWSS Taxed?
Applying For a Tax Refund After PUP

What is PUP?

The Pandemic Unemployment Payment was introduced as an emergency measure in 2020 following unforeseen unemployment caused by the global pandemic. It was a social welfare payment for those who lost their jobs due to the pandemic. The payment was paid directly into people’s bank accounts. As a result of it being rapidly introduced, the tax implications were not fully outlined at that time.

What is EWSS?

The Employee Wage Subsidy Scheme (EWSS) formerly known as the Temporary Wage Subsidy Scheme (TWSS), like the PUP, was introduced to help employers whose revenue had been impacted by the pandemic. It allowed employers to retain their staff while receiving a subsidy to cover a percentage of the staff wage cost. Thankfully, the pandemic is coming to an end, and so too are both the PUP and EWSS.

How Are PUP And EWSS Taxed?

When PUP and TWSS/EWSS were initially introduced at the start of the pandemic in 2020, there was some ambiguity around the tax implications associated with them. The schemes were rolled out during emergency times, so the tax structures weren’t fully outlined by Revenue until later.

If you claimed PUP or EWSS in 2020, you accrued a tax liability for each payment you received. You must repay this liability to Revenue.

From January 2021, the PUP & EWSS were taxed in real-time meaning the taxpayer was taxed at the same time as they received the PUP or EWSS. However, accrued tax liabilities from the year 2020 remain on your profile and remain owed to The Revenue Commissioners. Revenue has agreed to recoup these liabilities on an interest-free basis, over a four-year period commencing 2021.

Applying For a Tax Refund After PUP/EWSS

You’re finished with PUP or EWSS and you’re back working. What happens when you’re applying for a tax rebate now?

Whatever amount of tax liability you have accrued will be deducted by Revenue from the total tax refund you are due.

For example:

You are due a tax rebate of €1,500
You accrued a tax liability of €600 through the Pandemic Unemployment Payment
Your rebate amount will be reduced to €900

Every day, Irish Tax Rebates are obtaining refunds for clients who have underpayments from 2020 relating to PUP or TWSS/EWSS by utilising unused tax credits. Our fee is still based on your actual tax refund and we do not charge any fee for the amount that is offset against your tax liability. This is something we do free of charge to help our clients regularise their taxes after the impact of the pandemic on their personal finances.

Irish Tax Rebates will continue to help you both maximise their tax rebates and reduce their tax liabilities arising from Pandemic Unemployment Payment or EWSS/TWSS.

New Customers: Apply here.

Existing Customers: Apply For Additional Rebate

Claim your tax back

Terms and Conditions

1. Authorisation to act as agent

I, the undersigned, declare to the Revenue Commissioners of Ireland, that I authorise

Irish Tax Rebates (TAIN 66436K)
1 Leinster Street
Athy
Co Kildare

to act as my agent in dealing with all aspects of the filing of my Irish income tax return, including the submission of refund or credit claims, allowances or reliefs.

I confirm that all documentary evidence of entitlement to credits/reliefs claimed and taxable income sources, will be held for a period of 6 years, beginning at the end of the year of assessment to which the Return of Income and/or claim relates, by myself.

I confirm that this authorisation will remain in force until Revenue is formally notified of its cessation by either myself or Irish Tax Rebates, or for a maximum period of 4 years.

2. Authorisation for Agent to receive refunds on behalf of client

I authorise the transfer of any refund or repayment of PAYE/Income Levy/Universal Social Charge due to me by the Revenue Commissioners by electronic funds transfer to the following bank account which is held by Irish Tax Rebates:

BIC Code: AIBKIE2D
IBAN Number: IE55AIBK93336808365254
Name of Account Holder: Irish Tax Rebates

I understand that any refund made by the Revenue Commissioners to my agent, Irish Tax Rebates, on my behalf is refunded in a similar manner as if same were being refunded directly to me and that once the refund is transferred into the bank account nominated by me I have no further call upon the Revenue Commissioners in respect of same. I understand that Irish Tax Rebates is acting as my agent and is solely responsible to me in respect of any refund received by them on my behalf. I further understand that my agent Irish Tax Rebates is an independent entity and that the Revenue Commissioners make no endorsement of my agent or any such agency and cannot accept any responsibility whatsoever for problems encountered by me in dealing with them. I understand and agree that Irish Tax Rebates will input its own bank account details on the Revenue record for the duration of this mandate and will remove these details on the cessation of the mandate. I confirm that I am aware of, and agree to, the payment of the fees charged by Irish Tax Rebates in respect of the services carried out on my behalf and that this fee will be deducted from any amount refunded by Revenue and that the balance of this amount will be paid to me.

3. Terms and Conditions of Authorisation

I understand that Tax law provides for both civil penalties and criminal sanctions for the failure to make a return, the making of a false return, facilitating the making of a false return, or claiming tax credits, allowances or reliefs which are not due. I confirm that I will provide the necessary documentation to Irish Tax Rebates to support any refund, credit claims or claims for allowances and reliefs made to Revenue on my behalf of Irish Tax Rebates. I confirm that I will provide details of all my sources of income to Irish Tax Rebates.

I understand that I am required to retain all documentation relating to any refund or credit or allowance or relief claimed by the agent on my behalf for a period of 6 years beginning at the end of the year of assessment to which the Return of Income and / or claim relates, and that Irish Tax Rebates will be required to produce same to Revenue upon request.

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