COVID tax on wages today

bri007

Hi all,

I got my payslip today and I have paid a lot more tax nearly €190 than normal. A closer look and it appears my tax credits have decreased and I logged into paye anytime and it said income from disability/ illness benefit €700 and tax credits reduced by €146.

I got €700 last month due to covid for two weeks sick but I am just wondering will this be a regular payment from my wages now going forward? Anyone know or experienced same? Will I have to pay the whole lot back now or is it just once off tax from that payment?

I tried contacting paye but not taking calls so I sent email but I wouldn’t be hopeful of hearing back by email anytime soon. I am just confused as I wasn’t expecting so much money taken from my wages.

Thanks

clintondaly

Revenue has indicated that it will treat the COVID-19 Pandemic Unemployment Payment as taxable income. Depending on a person’s overall income during a year, the COVID-19 Pandemic Unemployment Payment may affect a person’s overall tax liability for the year.

Rodin

And so it begins....

Stheno

bri007 wrote: »

Hi all,

I got my payslip today and I have paid a lot more tax nearly €190 than normal. A closer look and it appears my tax credits have decreased and I logged into paye anytime and it said income from disability/ illness benefit €700 and tax credits reduced by €146.

I got €700 last month due to covid for two weeks sick but I am just wondering will this be a regular payment from my wages now going forward? Anyone know or experienced same? Will I have to pay the whole lot back now or is it just once off tax from that payment?

I tried contacting paye but not taking calls so I sent email but I wouldn’t be hopeful of hearing back by email anytime soon. I am just confused as I wasn’t expecting so much money taken from my wages.

Thanks

Was it illness benefit or unemployment pandemic payment?

bri007

No problem paying what I am due to pay in tax but just wondering how much I will be paying and how often will it be taken from my wages every two weeks. I would rather the end of the year where I could save and pay it in lump sum. To take a few hundred for my wages this week was a bit extreme I felt as I wasn’t expecting it!

clintondaly wrote: »

Revenue has indicated that it will treat the COVID-19 Pandemic Unemployment Payment as taxable income. Depending on a person’s overall income during a year, the COVID-19 Pandemic Unemployment Payment may affect a person’s overall tax liability for the year.

bri007

It was two weeks sick payment due to covid, I got two weeks payment totalling €700 and went back to work after self isolating

Stheno wrote: »

Was it illness benefit or unemployment pandemic payment?

Tiger Roll

Your tax credit for the remaining 33 weeks of this year is reduced by 146 . So you will pay roughly 4.50 a week extra in tax every week this year . That's just a crude estimate now

bri007

That’s not to bad but they took nearly €190 off me this forthright pay

Tiger Roll wrote: »

Your tax credit for the remaining 33 weeks of this year is reduced by 146 . So you will pay roughly 4.50 a week extra in tax every week this year . That's just a crude estimate now

tiredblondie

It sounds a bit odd to be fair - i was on illness benefit for 8 weeks and paid a total of 1421euro from SW - i got my new tax cert the day after i closed the claim and i owe around 280euro in tax which will be taken over the course of the remainder of the year.
But on my first pay back in work, i got tax back as i hadn't used my credits for 8 weeks!

bri007

Yeah I just got off the phone to Payroll in my job and they said it’s not on their end and it was revenue.

I am totally confused and can’t get though to revenue by phone! I’m hoping it was a one of deduction by when I see tax credits reduced I am fearing this is going to be a regular deduction going forward.

tiredblondie wrote: »

It sounds a bit odd to be fair - i was on illness benefit for 8 weeks and paid a total of 1421euro from SW - i got my new tax cert the day after i closed the claim and i owe around 280euro in tax which will be taken over the course of the remainder of the year.
But on my first pay back in work, i got tax back as i hadn't used my credits for 8 weeks!

tiredblondie

bri007 wrote: »

Yeah I just got off the phone to Payroll in my job and they said it’s not on their end and it was revenue.

I am totally confused and can’t get though to revenue by phone! I’m hoping it was a one of deduction by when I see tax credits reduced I am fearing this is going to be a regular deduction going forward.

Maybe it's a case that revenue hadn't sent through an amended RPN to your employer before the pay run was done? My tax back was a little bit more than it should have been due to this and they took it back on the next pay run - but overall, i was still up due to not using tax credits for 8 weeks.
The only way to contact revenue at the moment is through Revenue Online - log into your account and send them an inquiry through there.

bri007

Thanks for your help I will send them another message now through online inquiry.

tiredblondie wrote: »

Maybe it's a case that revenue hadn't sent through an amended RPN to your employer before the pay run was done? My tax back was a little bit more than it should have been due to this and they took it back on the next pay run - but overall, i was still up due to not using tax credits for 8 weeks.
The only way to contact revenue at the moment is through Revenue Online - log into your account and send them an inquiry through there.

tiredblondie

bri007 wrote: »

Thanks for your help I will send them another message now through online inquiry.

It'll take them a couple of days to reply but they will reply!

meath4sam

Hi looks like I am in the same situation as you. Extra 100 in tax this weeks wage. I did also receive 2 weeks illness covid payment.

bri007

Must be making their way through everyone now and we were the unfortunate ones to be chosen first. Hopefully that’s all they take of us going forward!

meath4sam wrote: »

Hi looks like I am in the same situation as you. Extra 100 in tax this weeks wage. I did also receive 2 weeks illness covid payment.

Ninthlife

As mentioned illness benefit is a taxable payment regardless if it was Covid 19 related or not.

DSP update Revenue with amount received which is coded against your credits and rate band to ensure correct tax is collected.

A week 1/ month 1 basis should be applied which prevents the reduced credits/rate band being recalculated back to pay period 1 at the start of the year.

In the cases mentioned here it sounds as if the week 1 wasnt applied and a cumulative basis was used by payroll. This means the tax owing on the illness benefit has been collected in one lump sum