USC changes explanation sought

omanachain · 17-10-2014 3:36pm #1

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?

CIARAN_BOYLE · 17-10-2014 6:36pm

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.

omanachain · 17-10-2014 8:27pm

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?

CIARAN_BOYLE · 17-10-2014 8:31pm

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.

Geuze · 17-10-2014 11:39pm

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

Budget 2015 taxation changes

Geuze · 17-10-2014 11:40pm

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.

USC changes explanation sought

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