New pup tax hit 2021

CandyButcher · 13-02-2021 10:58am #1

Am I right in thinking:

Person on pup for one year €350 gets employment after 1 year, pays back €70 per week tax for one year

Meaning even at the heavy tax hit you will still get more than typical job seekers payment which is 200 per week, you really only get €280 on pup considering you owe back €70 per week

barneystinson · 13-02-2021 11:02am

CandyButcher wrote: »

Am I right in thinking:

Person on pup for one year €350 gets employment after 1 year, pays back €70 per week tax for one year

Meaning even at the heavy tax hit you will still get more than typical job seekers payment which is 200 per week, you really only get €280 on pup considering you owe back €70 per week

Everyone gets €3,300 in tax credits annually, so if a person is on the PUP throughout 2021 they'll owe €340 in tax (assuming that is their only income).

350 x 52 = 18,200

18,200 x 20% = 3,640

3,640 - 3,300 = 340

relax carry on · 13-02-2021 11:05am

CandyButcher wrote: »

Am I right in thinking:

Person on pup for one year €350 gets employment after 1 year, pays back €70 per week tax for one year

Meaning even at the heavy tax hit you will still get more than typical job seekers payment which is 200 per week, you really only get €280 on pup considering you owe back €70 per week

No.

350 by 52 weeks is 18200 euro in total for the year. That's below the single persons standard rate band so all of it is taxable at 20% which is 3640 euro. You then deduct the standard credits a single person would have of 1650 Personal credit and 1650 PAYE credit to give a total of 340 euro due for the whole year of PUP. 340 over 52 weeks is €6.50 per week.

CandyButcher · 13-02-2021 11:16am

relax carry on wrote: »

No.

350 by 52 weeks is 18200 euro in total for the year. That's below the single persons standard rate band so all of it is taxable at 20% which is 3640 euro. You then deduct the standard credits a single person would have of 1650 Personal credit and 1650 PAYE credit to give a total of 340 euro due for the whole year of PUP. 340 over 52 weeks is €6.50 per week.

Thanks for the explanation. Thats not as bad as the newspaper’s are making out.

Dempo1 · 13-02-2021 11:31am

CandyButcher wrote: »

Thanks for the explanation. Thats not as bad as the newspaper’s are making out.

Yes a little hysteria created by the way it's being reported, those particular on lower rates, €300, €250 & €203 have little to worry about and liability will be miniscule.

Mrs OBumble · 13-02-2021 12:05pm

relax carry on wrote: »

No.

350 by 52 weeks is 18200 euro in total for the year. That's below the single persons standard rate band so all of it is taxable at 20% which is 3640 euro. You then deduct the standard credits a single person would have of 1650 Personal credit and 1650 PAYE credit to give a total of 340 euro due for the whole year of PUP. 340 over 52 weeks is €6.50 per week.

But how many will actually be on pup for the whole year.

The hit will come when people get jobs.

duffman13 · 13-02-2021 12:08pm

Mrs OBumble wrote: »

But how many will actually be on pup for the whole year.

The hit will come when people get jobs.

It's income which like any other welfare payment is taxable, no matter what PUP is a better option than 203 per week on standard social welfare which is also taxable.

The hysteria around this is idiotic

Will Yam · 15-02-2021 6:19pm

CandyButcher wrote: »

Thanks for the explanation. Thats not as bad as the newspaper’s are making out.

They do say that Weston in the Indo has been known to get something right years ago.

Vestiapx · 15-02-2021 6:31pm

Do you get the PAYE credit if you are on pup all year
I thought you had to be paid once as a paye worker to get it and then there are still issues.

Will Yam · 15-02-2021 6:35pm

Vestiapx wrote: »

Do you get the PAYE credit if you are on pup all year
I thought you had to be paid once as a paye worker to get it and then there are still issues.

The PUP is treated like employment income and attracts the PAYE credit.

capefear · 15-02-2021 6:36pm

Vestiapx wrote: »

Do you get the PAYE credit if you are on pup all year
I thought you had to be paid once as a paye worker to get it and then there are still issues.

You beat me to it, I thought you only get the paye tax credit if you actually have a job and are been paid a salary?

Padre_Pio · 15-02-2021 6:38pm

duffman13 wrote: »

It's income which like any other welfare payment is taxable, no matter what PUP is a better option than 203 per week on standard social welfare which is also taxable.

The hysteria around this is idiotic

The hysteria is that people in 2020 who lost decent jobs would be hit for the full whack in Jan 2021. At this stage, now in a new tax year, there's less impact.

Vestiapx · 15-02-2021 7:02pm

Will Yam wrote: »

The PUP is treated like employment income and attracts the PAYE credit.

Well then the papers are sh1t stirring idiots

CandyButcher · 17-02-2021 10:15am

I also read the deadline for this payment is March 2021,

Does this mean if you like me and just got the bullet in work... I will only receive this now for one month???

Its a pandemic payment.. we are still going to be in the thick of pandemic lockdown nowhere open in march

ari101 · 17-02-2021 10:19am

CandyButcher wrote: »

I also read the deadline for this payment is March 2021,

Does this mean if you like me and just got the bullet in work... I will only receive this now for one month???

Its a pandemic payment.. we are still going to be in the thick of pandemic lockdown nowhere open in march

Deadline 31 March currently, still open for new applications if let go.

If gov extend lockdown beyond 31 March I would expect PUP to be extended too but up to the gov.

Will Yam · 17-02-2021 10:20am

Vestiapx wrote: »

Well then the papers are sh1t stirring idiots

I’m surprised it took this headline for you to figure that out!!

Driver1980 · 17-02-2021 11:02am

Hi I have a question there. I got my tax cert on the revenue.ie. And it's a bit wierd for me. I know they charge the PUP payment at source every week using your tax credit. But why on this picture my tax credit is already deducted as the whole year? and only 180 left.

Same goes for the tax rate bands. If I come back to work lets say in march-april, my tax credit and rate band will be re-calculated?

thanks

ari101 · 17-02-2021 11:08am

Driver1980 wrote: »

Hi I have a question there. I got my tax cert on the revenue.ie. And it's a bit wierd for me. I know they charge the PUP payment at source every week using your tax credit. But why on this picture my tax credit is already deducted as the whole year? and only 180 left.

Same goes for the tax rate bands. If I come back to work lets say in march-april, my tax credit and rate band will be re-calculated?

thanks

To tax they need to reduce both band and credit.

15600 income @ 20% = 3120 used in tax credits for year.

vandriver · 17-02-2021 11:08am

Driver1980 wrote: »

Hi I have a question there. I got my tax cert on the revenue.ie. And it's a bit wierd for me. I know they charge the PUP payment at source every week using your tax credit. But why on this picture my tax credit is already deducted as the whole year? and only 180 left.

Same goes for the tax rate bands. If I come back to work lets say in march-april, my tax credit and rate band will be re-calculated?

thanks

Yes,the way revenue is calculating your pup liability is by assuming you'll be on it for the whole tax year .You would then have used up all your tax credits on pup payments.(more or less depending on pup amount)
When you get a job during the year,this will be recalculated so that the tax credits and tax bands remaining will be reallocated to your job.

Driver1980 · 17-02-2021 11:35am

Thank you for the answers.

I see, I won't owe any tax on PUP as my weekly tax credit covers it, but I see every payment reduces my tax credit weekly so the later we come back to work this year, the smaller the tax credit will be, therefore more tax to pay when working. Am I right?

So even people on reduced rate of PUP will still be hit by tax when they return to work. Not the PUP tax they owe but the very small amount of tax credit left.

Hopefully the country will be back to normal soon.

Vestiapx · 18-02-2021 12:41am

Will Yam wrote: »

I’m surprised it took this headline for you to figure that out!!

Who reads papers its like two years after blade runner killed dolf lungren

vandriver · 18-02-2021 8:18am

Driver1980 wrote: »

Thank you for the answers.

I see, I won't owe any tax on PUP as my weekly tax credit covers it, but I see every payment reduces my tax credit weekly so the later we come back to work this year, the smaller the tax credit will be, therefore more tax to pay when working. Am I right?

So even people on reduced rate of PUP will still be hit by tax when they return to work. Not the PUP tax they owe but the very small amount of tax credit left.

Hopefully the country will be back to normal soon.

It's exactly the same as being paid 350 a week in one job,then later in the year moving on to another better paying job.If you're on pup for 20 weeks at 350 a week,then you'll still have 32 weeks of tax credit left for the new job.Theres no 'hit'.

Eircom_Sucks · 08-04-2021 11:04am

my partner was on pup since January 8th to march 31st

and is on 35k anually

but her first payslip she was €140 down than normal

any idea how much she will have to payback ? also €140 seems way to much for 1 week to take

DmanDmythDledge · 08-04-2021 6:18pm

Check your tax credit certificate and see if the deduction for PUP matches what was received

Eircom_Sucks · 09-04-2021 10:25am

DmanDmythDledge wrote: »

Check your tax credit certificate and see if the deduction for PUP matches what was received

she got her new tax cert dated april 7th , and everythings the same as 2020

so will she get paid normal this week ?

DmanDmythDledge · 09-04-2021 4:59pm

Eircom_Sucks wrote: »

she got her new tax cert dated april 7th , and everythings the same as 2020

so will she get paid normal this week ?

So there's no deduction from credits or rate band for the PUP?

New pup tax hit 2021

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