Well, I cant say if you are right or wrong, but it might not be as easy as you think to get put back on a cumulative basis as you think.
In a normal year, with a normal social welfare benefit this might be the case - take for example maternity benefit, this could be done.
The problem with PUP is that if you are receiving a PUP benefit of €350 and you are on a single persons tax credits then your tax credits will not be enough to pay your tax bill.
PUP at €350 per week attracts a tax bill of €70 per week.
A single person with regular credits has an annual tax credit of €3300 per year. That is €63.46 per week - it is not enough to pay your PUP tax liability each week.
For other benefits such as Maternity or regular Jobseekers the level of benefit is much lower than PUP (Jobseekers is €203 per week, PUP can be €350 per week) so your credits will pay your tax bill and still have some left over.
PUP is not the same.
If you are on the top rate of PUP and you ask Revenue to move you onto a cumulative basis then you will have a few weeks of pain as Revenue claw back all the tax you owe on PUP.
If you stay on a Week 1 basis then you will finish out the year owing no tax or possibly entitled to a refund.
If you move to a cumulative basis now you will have a sharp adjustment now, and no tax bill at the end of the year
If you stay on a Week 1 basis the you will either end the year balanced, or entitled to a tax refund.
I cant tell the future. Perhaps we really are at the end of the pandemic and when we all get back to work that's it.
But, what if it's not?
What if as we head back into the Autum/Winter that Covid flares up again and we have to go into another lockdown?
If people go back onto PUP they will start building up a tax bill again.
If it was me, I would rather pay a bit more tax now and get it back at year end than take a big hit now to be balanced, but leave myself open to another bill at the year end.
But hey, If I could tell the future I wouldn't be doing this stuff and I would have won the lotto a million times over
Originally Posted by DmanDmythDledge
Completely incorrect, if its current year you can get your basis changed more or less straight away and any tax overpaid refunded in next payslip