surinenglish

Tax office staff warn furloughed workers they may need to do a tax declaration for 2020

Tax office staff warn furloughed workers they may need to do  a tax declaration for 2020
/ Ñito Salas
  • ERTE payments don't normally have tax deducted at source, unlike a pay packet, and so many people could be caught out on their IRPF income-tax declaration as they will have some money to pay back to the taxman

Representatives of the government's tax inspectors have warned people who have benefited from ERTE furloughing payments in the last 12 months of the Covid-19 pandemic to check if they need to fill out a tax return for 2020.

Normally those earning less than 22,000 euros a year from a single source, typically their employer, don't have to complete a separate self-assessment-style declaration.

However, as many people were getting furlough money from the SEPE employment service as well as from an employer in 2020, they will be forced to file an individual tax return under the rules.

ERTE payments don't normally have tax deducted at source, unlike a pay packet, and so many people could be caught out on their IRPF income-tax declaration as they will have some money to pay back to the taxman.

The Gesha union of Hacienda employees explained that those who have earned 14,000 to 22,000 euros in 2020 need to fill in a declaration if what was received from SEPE was above 1,500 euros in 2020. Only those who earned less than 14,000 euros, including from SEPE, are excluded from the declaration paperwork.

The tax office is getting ready for the annual period to fill in tax returns for the IRPF income tax for January to December 2020 and Gesha is keen that the public is ready, especially those who were furloughed as their money counts as income for tax purposes.

Gesha has also warned that those with ERTEs in 2020 who were used to tax refunds in previous years, due to reasons such as number of children, should expect to get little refunded this year. It is also recommending that workers check the drafts of their declarations in case extra furlough money has slipped into the calculation that they weren't entitled to and which they paid back.