From 1st July 2013 the following payments by Department of Social Protection will be taxable in full:
It is important to remember that USC and PRSI will not apply to these benefits.
How will this new system work?
The Department of Social Protection, as part of an ongoing exchange of information with Revenue, will provide Revenue with all payment details to update the tax payers’ records.
Individuals who pay their tax through the PAYE system will, where possible, have their annual tax credits and cut-off point reduced by the amount of these payments so as to avoid any underpayment of taxes at the year end.
Employers and pension providers will be advised of the adjusted tax credits and cut-off points on employer tax credit certificates.
Comments are closed.