Finance minister defends changes to taxes on pandemic payments scheme 

Income tax accrued on the PUP this year is payable in 2021, a change from the system in place last year

Finance Minister Paschal Donohoe says the changes should not affect the majority of people on the pandemic unemployment payment. Photo: Leah Farrell / RollingNews.ie

The finance minister has defended changes to tax payments on pandemic employment supports, saying it's aimed at ensuring people don't face a big tax bill at the end of the year.

People receiving the pandemic unemployment payment (PUP) who return to work in 2021 have to pay all the income tax due on the payment this year, while those on PUP last year have four years to settle their bill.