Query on Covid Subsidy

deceit

Hi, I'm hoping someone here could give me some information on this.
I have been put on the Covid subsidy scheme and My employer is paying most of my wage which is fine and I am working as normal. I'm lucky I am in a position were I don't have to worry about my wage as much as others.

What I cant find a clear answer on is if their will be a large amount of tax I could owe at the end of the year?
I earn 75k and have paid normal tax for the year up until this month.
The reason I'm wanting to know is if a large tax bill is due I might as well take say the last 2 months of the year unpaid, enjoy time with my Son/Partner and use the tax credits due to cover any outstanding tax implications.

thebiglad

I expect it will be treated as would occur if you were in receipt of job seekers for part of the tax year and returned to work - they will reduce your tax credits upon return to work by the amount you received in benefits.

The later in 2020 people return the greater the impact from reduced credits will be.

I doubt if it is late in the year they would collect it all in this tax year as that would politically unpopular but likely future year tax credit will be reduced.

noodler

deceit wrote: »

Hi, I'm hoping someone here could give me some information on this.
I have been put on the Covid subsidy scheme and My employer is paying most of my wage which is fine and I am working as normal. I'm lucky I am in a position were I don't have to worry about my wage as much as others.

What I cant find a clear answer on is if their will be a large amount of tax I could owe at the end of the year?
I earn 75k and have paid normal tax for the year up until this month.
The reason I'm wanting to know is if a large tax bill is due I might as well take say the last 2 months of the year unpaid, enjoy time with my Son/Partner and use the tax credits due to cover any outstanding tax implications.

Have you gotten your first covid payslip yet?

What is the weekly, fortnightly, monthly tax credit? (Which currently won't be being used, see how it compares your last non-covid pay cheque).

Now, with the amount you are getting, you can work out what the USC, income tax and prsi contribution will be.

I expect you'll be left with minimal PRSI and USC contributions (because of the high thresholds at which USC kicks in).

The income tax might well.be low also when put against the tax credit applicable for that pay cheque.

General advice has been to out 25% of your pay cheque away but I don't think it'll be that high for most.

deceit

On my pay cheque it shows in march tax credit 825 and this month its 1375. I'm not sure what this means tbh. It turns out I was in receipt of this covid subsidy last month but was paid a full months wage if this affect it also (I didn't notice being on the scheme as I received a full wage).

If its 25% of my wage owed then I'm happy enough to be asked to be made redundant and enjoy a few months relaxing and worry about a job next year.

noodler wrote: »

Have you gotten your first covid payslip yet?

What is the weekly, fortnightly, monthly tax credit? (Which currently won't be being used, see how it compares your last non-covid pay cheque).

Now, with the amount you are getting, you can work out what the USC, income tax and prsi contribution will be.

I expect you'll be left with minimal PRSI and USC contributions (because of the high thresholds at which USC kicks in).

The income tax might well.be low also when put against the tax credit applicable for that pay cheque.

General advice has been to out 25% of your pay cheque away but I don't think it'll be that high for most.