13th May, 2021

Revenue have issued further guidance on the payment of Temporary Wage Subsidy Scheme (TWSS) liabilities by employers for self-assessed employees and proprietary directors. The update provides clarifications in relation to the concessional Benefit in Kind treatment and TWSS debts. Helpfully, the concessional treatment is extended to September 2021, it applies to self-assessed employees and in jointly assessed cases, if the employee’s spouse is self-assessed. It will also apply to proprietary directors provided the employer pays the TWSS related liabilities of all employees in the company.

However, Revenue also note that “It is not possible for Revenue to provide the actual amount of income tax and USC arising from TWSS payments payable by each employee for 2020.” placing the onus back on the employers. Link here

The payment of TWSS liabilities for PAYE only employees should be reasonably straightforward in most cases, but where there is self assessment involved complications can arise.

If you’d like assistance with this matter please don’t hesitate to contact our tax team.