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Q. Has there been any change to the Universal Social
Charge in Budget 2012?
29.01.12
The Universal Social Charge (USC) is a tax payable on your gross
income. It is also payable on notional income (benefit-in-kind
payments) and it is deducted before pension contributions. All
Department of Social Protection payments (including State pensions
and Child Benefit) and similar payments (for example, CE schemes and
Back to Education Allowance) and income on which DIRT has been paid
are exempt from the USC.
Everyone (including medical card holders) is liable to pay the USC
if their gross income is over a certain threshold in a year. For
2012, the income threshold has increased from €4,004 to €10,036. If
your income is over €10,036 you pay the USC on all your income.
There is no change to the rates of the USC which are: 2% on the
first €10,036; 4% on the next €5,980; 7% on the balance. People over
70 are not liable for the 7% rate but pay at 2% on income up to
€10,036 and at 4% on all their income above €10,036.
For 2012 the deduction of the USC has changed to a cumulative basis,
similar to the manner in which PAYE is deducted. As with PAYE tax
credits and rate bands, the USC rates and thresholds to be applied
to employees will be issued to employers by the Revenue
Commissioners on Employer Tax Credit Certificates (P2Cs).
Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741
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