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Tax timebomb ticks for low-pay workers on Covid-19 schemes

Samantha McCaughren


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Paid-for flights and holidays have been cancelled because of the pandemic crisis

Paid-for flights and holidays have been cancelled because of the pandemic crisis

REUTERS

Paid-for flights and holidays have been cancelled because of the pandemic crisis

Hundreds of thousands of workers have been grateful for the financial support during Covid-19 offered through Government schemes, the Pandemic Unemployment Payment (PUP) and Temporary Wage Subsidy Scheme. Without them, there would have been considerable hardship throughout the country. But a tax timebomb is ticking.

Exchequer figures show that those most reliant on the PUP scheme are lower-paid workers, predominantly in the retail and hospitality sectors. What was not immediately apparent to recipients of the payment was the tax implications which will follow.

There has since been some media coverage and publicity around the tax responsibility which falls to these workers and how much they owe will only become apparent in the months to come (see My Money, page 6, for details of tax implications).