At a recent TALC meeting, Chartered Accountants Ireland, under the auspices of the CCAB-I, asked Revenue to set out the process and the timing of closure of claim notifications from the Department of Social Protection (DSP) to Revenue when an individual returns to work after claiming the PUP. Revenue noted that there can be an overlap of one week between the last payment of the PUP and an individual’s return to work. The claim closure notice issues from the DSP after the payment of PUP for the individual’s final entitlement week. The individual will be taxed on a “Week 1” basis on returning to work until such time as tax on the PUP is paid.

The PUP is taxed in real-time in 2021 and a claimant’s tax credits, and rate bands are placed on a “Week 1” basis to collect tax due on the PUP as set out on Revenue’s webpage. If the PUP claimant has insufficient tax credits to pay the tax due on the PUP, then the tax credits of his/her jointly assessed spouse will be reduced to collect the tax.