Week 1 basis for real time taxation of PUP

Feb 15, 2021

In last week’s Tax News, Chartered Accountants Ireland reported that the Pandemic Unemployment Payment (PUP) will be taxed in real-time in 2021 as workers return to work. Responding to feedback from members, we sought further clarification from Revenue on the application of the Week 1 basis for allocating tax credits. Revenue confirmed that it will be generating revised Revenue Payroll Notifications and Tax Credit Certificates on a Week 1 basis on receiving a claim closure report from the Department of Social Protection. Revenue may revisit all Week 1 cases at some stage, review their situation and if appropriate place the taxpayer back on a cumulative basis.