Updated USC FAQ’s
An updated version (26 July 2012) of the USC FAQs has now been published on the Revenue website at
www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
Which now answers
Is the USC covered by our Double Taxation Agreements?
Is income receivable by an individual under a Deed of Covenant liable to the Universal Social Charge?
Universal Social Charge (USC) Amendment
As a result of the recent enactment of the 2011 Finance Act, there has been a significant change to the USC For an individual holding a current Full Medical Card the maximum rate of USC is now 4% instead of the previous 7%. The employer must satisfy themselves that the employee hold such a card before implementing the change. This change is backdated to 1 January 2011.
In cases where an employee holds a current Full Medical Card, and have paid USC at the 7% rate, that employee is entitled to a full refund immediately rather than waiting until the […]
New changes proposed to USC
The minister for finance Mr Brian Lenihan has said that he will introduce the following changes to the implementation of the Universal Social Charge
Medical card holders will not have to pay USC at the top 7% rate only at the lower rates
The self-employed will pay an extra 3% surcharge on earnings over €100,000.00
We will post further details as they become available.
Universal Social Charge
As we await Budget 2011 on December 7, I want to take a look at one of the changes announced by Brian Lenihan in his budget speech for Budget 2010, the creation of the Universal Social Charge. Originally this was to “replace employee PRSI, the Health Levy and the Income Levy”, however this is now unlikely given the time constraints and it will simply combine the Health and Income Levies. I think it is fairly safe to assume that the Universal Social Charge will operate as a “super” Income Levy, that is with new increased rates and adjusted bands. PRSI will be as before but less the Health […]