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Pup reduction in 2021?

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    #32
    TippCashel
    Registered Users Posts: 109 ✭✭TippCashel


    Just want to ask on this because I'm clueless, so hoping someone can help.

    Had my first paycheck since being off the €350 PUP and like others, my Tax Credits are completely gone.

    The paycheck gave me a fairly big fright.

    Gross: €2537
    Net: €1412

    Net generally goes between €1850 and €1900

    Any ideas on this? Will this be what I can expect now the rest of the year etc?

    Thank you


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    #33
    ari101
    Registered Users Posts: 2,835 ✭✭✭ari101


    TippCashel wrote: »
    Just want to ask on this because I'm clueless, so hoping someone can help.

    Had my first paycheck since being off the €350 PUP and like others, my Tax Credits are completely gone.

    The paycheck gave me a fairly big fright.

    Gross: €2537
    Net: €1412

    Net generally goes between €1850 and €1900

    Any ideas on this? Will this be what I can expect now the rest of the year etc?

    Thank you

    No, you should go back up once the PUP claim is officially closed and SocWelfare tell Revenue. Not sure the exact time frame. At the moment for the weeks/months you will be underpaid (over taxed) until new cert issues. Looks like you may have to wait to get the extra for these weeks/months (or some of it) back as everyone goes on week1/month1 at the moment.


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    #34
    TippCashel
    Registered Users Posts: 109 ✭✭TippCashel


    ari101 wrote: »
    No, you should go back up once the PUP claim is officially closed and SocWelfare tell Revenue. Not sure the exact time frame. At the moment for the weeks/months you will be underpaid (over taxed) until new cert issues. Looks like you may have to wait to get the extra for these weeks/months (or some of it) back as everyone goes on week1/month1 at the moment.

    Thank you. That softens the blow at least.

    Think the overtax will be back paid or is that that?


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    #35
    ari101
    Registered Users Posts: 2,835 ✭✭✭ari101


    TippCashel wrote: »
    Thank you. That softens the blow at least.

    Think the overtax will be back paid or is that that?

    If you were on std credits (3,300 annual) and getting 350 a week, you'll owe revenue about 7 quid for every week you were on PUP I think. That'll come off the shortfall this month (you might have to wait til Jan 22 to get it, if Revenue can't implement the system changes to put people back onto a cumulative basis before then). If your overall tax bands/credits and wages are the same as last year otherwise, you should get the majority of the shortfall back.


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    #36
    TippCashel
    Registered Users Posts: 109 ✭✭TippCashel


    Thanks all. A relief.


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    #37
    BPPM
    Registered Users Posts: 12 ✭BPPM


    The 1st "Payroll Matters in Ireland" issue relating to this was that PAYE workers who were not on PUP in 2021 were issued with Tax Certs reducing their tax band and credits by 18,200 band 3,640 respectively. This resulted in massive over taxation of these PAYE workers who are on incomes far below what is regarded as the national average. Thousands of PAYE workers who had Tax Certs issued to them in error, had these tax certs revised and refunds made in respect of the over charged amounts. The issue to revise the process for those currently on the PUP with annualised reductions for PUP, Maternity, and Illness Benefits is still ongoing.


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    #38
    BPPM
    Registered Users Posts: 12 ✭BPPM


    Taxation of PUP received in 2021
    The DSP informs Revenue on a weekly basis of the amount of taxable PUP paid to each recipient. Then:

    any tax due is collected by reducing the person’s tax credits and rate band. To do this, Revenue ‘annualises’ the weekly amount of PUP. This is calculated by multiplying the weekly amount by 52. The annual tax credits and rate band are reduced by this amount.
    the adjusted tax credits and rate band are applied on a week 1 basis.
    the revisions are shown on the employee’s Tax Credit Certificate (TCC). A revised Revenue Payroll Notification (RPN) is made available to their employer.
    In most cases, there will be no additional tax liability at the end of 2021.

    Joint assessment
    You may be taxed under Joint assessment. If you have insufficient tax credits for this reduction to apply, your spouse or civil partner’s tax credits will reduce.


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    #39
    Jonathan222
    Registered Users Posts: 91 ✭✭Jonathan222


    Mamto5 wrote: »
    Hi can I ask a question we are married and jointly assessed my husband is receiving PUP. In the new tax credits we received yesterday they have only allowed a SRCOP of 44k for both of us and reduced this by the amount of PUP my husband will receive for the year. Should he not be awarded a SRCOP of 26k on top of the 44k. They would then deducted the PUP received from his SRCOP. If this isn’t the case it is very unfair on married couples as if we were single they would. It touch my SRCOP.

    Hello, just wondering if you got a response on this from revenue?

    I thought the 18,200 would be added to the 44,300, as why can't the PUP be seen as income?
    Also, why is the rate band reduced by the 18,200 to 26,100? (44,300 - 18,200).
    Is this not a form of double taxation, I.e.
    Reduced tax credits by the 3,640 (so 20% of the 18,200) (so more tax ultimately to pay) and then reduce your tax band (again leading to more tax payment)?


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    #40
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    Jonathan222 wrote: »
    Hello, just wondering if you got a response on this from revenue?

    I thought the 18,200 would be added to the 44,300, as why can't the PUP be seen as income?
    Also, why is the rate band reduced by the 18,200 to 26,100? (44,300 - 18,200).
    Is this not a form of double taxation, I.e.
    Reduced tax credits by the 3,640 (so 20% of the 18,200) (so more tax ultimately to pay) and then reduce your tax band (again leading to more tax payment)?

    The 18200 reducing the rate band and credits is the PUP being seen as income. When you receive any income subject to PAYE your rate band and credits are used up. So rather than reduce your rate band and credits each time you receive the PUP payment, the annualised figure has been used.


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    #41
    Jonathan222
    Registered Users Posts: 91 ✭✭Jonathan222


    relax carry on wrote: »
    The 18200 reducing the rate band and credits is the PUP being seen as income. When you receive any income subject to PAYE your rate band and credits are used up. So rather than reduce your rate band and credits each time you receive the PUP payment, the annualised figure has been used.

    Thanks.

    So what happens if my spouse was, say, working in a shop earning 18,200. In this case, my understanding is that the 44 and the 18 would be added together (not reduced like the PUP) and taxed that way, under joint assesment thinking.

    It just seems, that under the way the PUP is taxed, couples, who previously had two incomes (with say the second one above the PUP payment) are actually paying more tax which I'm not sure alot of people are aware of ....yet.


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    #42
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    Jonathan222 wrote: »
    Thanks.

    So what happens if my spouse was, say, working in a shop earning 18,200. In this case, my understanding is that the 44 and the 18 would be added together (not reduced like the PUP) and taxed that way, under joint assesment thinking.

    It just seems, that under the way the PUP is taxed, couples, who previously had two incomes (with say the second one above the PUP payment) are actually paying more tax which I'm not sure alot of people are aware of ....yet.

    If the 18200 relates to your spouse then it should be coming off the 26000 rate band she has unless you have the home careers tax credit. That's about the only thing I could think of. How does it look on your tax credit cert?


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    #43
    Jonathan222
    Registered Users Posts: 91 ✭✭Jonathan222


    relax carry on wrote: »
    If the 18200 relates to your spouse then it should be coming off the 26000 rate band she has unless you have the home careers tax credit. That's about the only thing I could think of. How does it look on your tax credit cert?

    Ok, yeh, home carers allowance is there do makes a bit more sense now. Thanks


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    #44
    mark2912
    Registered Users Posts: 156 ✭✭mark2912


    Sorry to be bringing up an old thread, but have a quick question...

    Friend of mine was let go from their job on 2nd of January and returned on the 10th of April, during their unemployment they received the PUP payment. They got €300 a week for 15 weeks, totalling to €4500 in PUP payments altogether. Since returning to work, they are now taxed on a Week 1 basis but their credits or cut-off point haven't changed.

    What is confusing them however is, while the PUP payment is listed as a payment on their revenue account, it shows as a total amount of 0 (see attached screenshot). Why is this? Has anybody else had this issue?


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    #45
    Ciaran
    Registered Users Posts: 908 ✭✭✭Ciaran


    mark2912 wrote: »
    Sorry to be bringing up an old thread, but have a quick question...

    Friend of mine was let go from their job on 2nd of January and returned on the 10th of April, during their unemployment they received the PUP payment. They got €300 a week for 15 weeks, totalling to €4500 in PUP payments altogether. Since returning to work, they are now taxed on a Week 1 basis but their credits or cut-off point haven't changed.

    What is confusing them however is, while the PUP payment is listed as a payment on their revenue account, it shows as a total amount of 0 (see attached screenshot). Why is this? Has anybody else had this issue?

    It's because they're on a week-1 basis. Any income outside this week has no impact on the tax calculation for this week. At the end of the year, the full amount received will update and they'll get a balancing statement.


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