Revenue eBrief No. 009/23
Changes to the operation of ‘Week 53’ provisions
Tax and Duty Manual Part 42-04-07 – PAYE reviews where Week 53 applies, has been updated to reflect the Finance Act 2022 changes, as set out below.
- Amendment to section 480 of the Taxes Consolidation Act 1997, to provide that the Week 53 provisions apply to the Sea-going Naval Personnel Tax Credit with effect from 1 January 2023.
- In addition, it provides a statutory footing for the application of the Week 53 provisions to the income threshold applicable when determining if an individual qualifies for the Home Carer Tax Credit. As this treatment was applied by Revenue previously on an administrative basis, claimants of the Home Carer Tax Credit will not therefore see any difference in the tax treatment applicable to them on foot of this change.
PAYE Reviews where Week 53 applies
This document should be read in conjunction with section 480B of the Taxes
Consolidation Act 1997
Document last updated January 2023
Section 14 of Finance Act 2018 introduced a new section, section 480B, into the Taxes Consolidation Act (TCA) 1997. This applies for the tax year 2018 and subsequent years.
Broadly, section 480B provides for an increase in rate bands and certain tax credits where a PAYE taxpayer, who is assessed to income tax on the receipts basis (section 112(3) TCA 1997), is paid an extra week’s pay in the year (i.e. a ‘Week 53’ scenario).
The purpose of this manual is to set out the procedures to be adopted where reviews are being carried out in cases where tax credits and standard rate cut-off points, over and above the annual amount, have been given by an employer within the year in accordance with the Income Tax Regulations.