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Temporary Wage Subsidy Scheme (TWSS) tax liabilities – BIK Concession Update

Revenue have extended their Benefit in Kind (BIK) concession with respect to the payment of TWSS tax liabilities (income tax and USC) by employers on behalf of their employees, to the end of September 2021.  Revenue confirmed that this concession will also apply to payment of TWSS tax liabilities of employees who are self-assessed.  Proprietary directors will also be covered by the concession but only if the employer pays the TWSS tax liabilities of all employees in the company.

What does this mean?

This means that Revenue will not apply the BIK rules to the payment of income tax and USC liabilities arising for employees as a result of the TWSS amount. Therefore, the employee will not be subject to an additional tax charge on the payment made by their employer. Certain conditions apply.

The latest updates from Revenue (published 10 May 2021) tell us that:

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How to determine the TWSS tax related liabilities?

Revenue tell us that it is not possible for them to provide the actual amount of income tax and USC arising on the TWSS amount.  The employees’ Preliminary End of Year Statement for 2020 will assist in determining the liabilities.  A Preliminary End of Year Statement will not be available to self-assessed employees.  Employer payroll records may also help. 

In some instances, Revenue have determined that some employees have not received their full entitlement to TWSS payments and additional amounts may now be due – an assessment of which will be finalised at the end of June 2021.  Any such payments by Revenue will be offset against TWSS tax related liabilities. It is the balance of tax liabilities which the employer may pay on behalf of the employee. 

How to pay

The methods of payment of the TWSS tax related liability by the employer is either payment direct to the employee or amending the final payroll submission in 2020.  Details of which are contained in our previous bulletin.


It is essential that employers engage with their employees to agree the amount of TWSS tax liability to be paid. Retention of supporting documentation is also a must. Certain terms and conditions of the scheme must be satisfied.

Deadline for concession

Employers can pay their employees’ TWSS tax liabilities without a BIK charge arising until the end of September 2021. Revenue have indicated a short extension beyond the end of September 2021 may be available on a case by case basis, due to exceptional circumstances, where the employer wishes to settle the TWSS tax related liabilities for its employees but is unable to do so by this deadline. 

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