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Tax hit for PUP recipients returning to work this year

Feb 10, 2021 09:02 By News Northern Sound
Tax hit for PUP recipients returning to work this year Tax hit for PUP recipients returning to work this year
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Hundreds of thousands of people receiving the Pandemic Unemployment Payment will be in for a high tax bill if they return to work this year.

Hundreds of thousands of people receiving the Pandemic Unemployment Payment will be in for a high tax bill if they return to work this year.

It means people on the payment, who manage to secure a job , will see a reduced take home wage.

The Pandemic Unemployment Payment was set up last March when the pandemic started to give urgent social welfare payments to those who had lost their jobs.

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Around 500,000 people will receive it this week.

Last year those receiving the payment were given the option to pay their income tax bill over 4 years.

However this has now changed according to the Irish Independent and people currently receiving the PUP will have to pay back all the income tax due on it this year if they return to work.

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This means that although they’ve returned to work, their take home pay after tax will be significantly cut.

Couples that are jointly assessed will also be hit.

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