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USC changes explanation sought

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  • 17-10-2014 3:36pm
    #1
    omanachain
    Registered Users Posts: 2 ✭


    Hi all,

    I am hoping to get a brief explanation of the USC changes.
    As I understand it a person must now earn over 12,012 euro in order to start paying the USC. once a persons income reaches that amount they pay the USC at a rate of 1.5%

    Once a person earns 12,012.01 euro they enter the 3.5% USC band.

    My question is this: Am I correct in saying that the lowest rate of 1.5% applies only to people who earn exactly 12,012 euro? no more and no less.

    The other rates have specific income bands, like the 3.5% rate applies to incomes between €12,012.01 to €17,576.00.

    It just seems odd to me, are there many people who earn exactly 12,012 on the dot?
    Tagged:


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    #2
    CIARAN_BOYLE
    Moderators, Sports Moderators Posts: 14,599 Mod ✭✭✭✭CIARAN_BOYLE


    omanachain wrote: »
    Hi all,

    I am hoping to get a brief explanation of the USC changes.
    As I understand it a person must now earn over 12,012 euro in order to start paying the USC. once a persons income reaches that amount they pay the USC at a rate of 1.5%

    Once a person earns 12,012.01 euro they enter the 3.5% USC band.

    My question is this: Am I correct in saying that the lowest rate of 1.5% applies only to people who earn exactly 12,012 euro? no more and no less.

    The other rates have specific income bands, like the 3.5% rate applies to incomes between €12,012.01 to €17,576.00.

    It just seems odd to me, are there many people who earn exactly 12,012 on the dot?

    First 12012 is 1.5% if you don't earn 12012 you are exempt.


  • Options
    #3
    omanachain
    Registered Users Posts: 2 ✭omanachain


    CIARAN_BOYLE wrote: »
    First 12012 is 1.5% if you don't earn 12012 you are exempt.

    Thanks Ciaran for your answer. Can I ask, in regards to the self-employed, I know they are charged a rate of 11% for earnings over €100,000.

    Are the self employed also charged the same rates - ie 1.5% on the first €12,012 and so forth?


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    #4
    CIARAN_BOYLE
    Moderators, Sports Moderators Posts: 14,599 Mod ✭✭✭✭CIARAN_BOYLE


    omanachain wrote: »
    Thanks Ciaran for your answer. Can I ask, in regards to the self-employed, I know they are charged a rate of 11% for earnings over €100,000.

    Are the self employed also charged the same rates - ie 1.5% on the first €12,012 and so forth?

    Self employed are charged the same as employees until they earn 100k.


  • Options
    #5
    Geuze
    Registered Users Posts: 13,073 ✭✭✭✭Geuze


    http://www.budget.gov.ie/Budgets/2015/Documents/2%20Summary%20of%202015%20Budget%20Measures%2014%20Oct%2000.09.pdf

    Budget 2015 taxation changes


  • Options
    #6
    Geuze
    Registered Users Posts: 13,073 ✭✭✭✭Geuze


    Incomes of €12,012 or less are exempt. Otherwise,

    €0 to €12,012 @ 1.5%

    €12,013 to €17,576 @ 3.5%

    €17,577 to €70,044 @ 7%

    €70,044 to €100,000 @8%

    PAYE income in excess of €100,000 @ 8%

    Self-employed income in excess of €100,000 @ 11%

    Extension of the exemption from the 7% rate of USC
    for medical card holders whose aggregate income
    does not exceed €60,000, who will now pay a
    maximum rate of 3.5% USC.

    Individuals aged 70 years and over whose aggregate
    income is €60,000 or less will pay a maximum rate of
    3.5% USC.


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