A change in July to the Social Welfare COVID-19 Amendment Bill could leave recipients of PUP payments liable to substantial tax bills at a time of significant challenge to their incomes.

This warning was issued in the Dail when Sligo Deputy Marian Harkin TD told Minister of State at the Department of Finance Sean Fleming, that clarification was needed on the tax situation which arose from the July change which brought the Pandemic Unemployment Payment scheme (PUP) into the list of social welfare payments and, therefore, taxable.

Deputy Harkin says the PUP payment was classified as an urgent needs payment, and therefore not taxable, and is asking the Minister to clarify if there is change to that position.

She says if the payment was now to be taxable many of the 600,000 recipients would have future tax bills.

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