Employees that have received payments under TWSS or Pandemic Unemployment Payment are to be moved to a Week 1 basis.

The Week 1 basis is also known as ‘non-cumulative basis’ or month 1 for employees paid monthly. This basically means you pay tax each day you are paid, separate from previous weeks before that. Therefore, pay and tax credits are not accumulated to the previous 1st January and do not factor in anything else that has happened up to that point.

Employers have been notified to operate on a Week 1 basis since 21st June 2020.

This may mean that if you have not fully utilised all your tax credits and allowances in 2020, you could be overpaying tax. It is important that you review 2020 and submit a tax return to ensure you receive a refund of any overpayment of tax. 

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