Ms Barry urged the Government to seek “immediate advice” on the centre’s concerns and advised it to “take heed of the stress and confusion that has been caused to date”.The criticism from FLAC follows assertions from Ms Humphreys that it has always been clear the payment would be treated as income by Revenue, similar to jobseeker’s allowance.
“Jobseeker’s is liable for income tax if you earn over a certain amount,” she told RTÉ’s News at One on Monday. The Minister said any tax on the PUP would be spread out over four years and would amount to €1.50 per week and that more people were due a refund than would pay tax. The average amount of tax outstanding is €350.
However, Ms Barry, said the Minister’s comments are incorrect as the jobseeker’s allowance is means-tested and not subject to tax. She said the pandemic payment was only made subject to income tax through the enactment of section three of the Finance Act 2020, which also provided that tax could be backdated to claims from March 13th.
Christopher Bowes, legal officer at FLAC, said PUP claimants were entitled to rely on official information and could not have been aware initially that the payment would be taxed.
Treating it as an income when the governments own agenda is to stop you working is definitely one of the most backward things to hit people with.. it’s a fucking support... and because of government failure now a good portion of the population is unemployed..
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