USC charge..

msg11

If I earn 11,040 a year working 20 hours a week am I still liable for this charge ?

If I work 18 hours a week I will be just under the 10,000.. Although down 1,040 going on USC charges this year 448euros so far, I would be down 600..

On a personal level the level is still far too low. I'm working 20 hours, getting 10,592euros. While if I was on the social welfare I would be getting 8928 a difference of 1664euro for working, no incentive for people to get off the social (long term people).. Yet taxed near 500 so it's a 1,000 extra for working.. The USC charge need to be raised to 15,000..

Riskymove

msg11 wrote: »

If I earn 11,040 a year working 20 hours a week am I still liable for this charge ?

you would be liable for 4% of anything over 10,360

so that is about €700 a year in your case, so 4% would be €28

a year.... 54 cent a week

whatstherush

msg11 wrote: »

If I earn 11,040 a year working 20 hours a week am I still liable for this charge ?

If I work 18 hours a week I will be just under the 10,000.. Although down 1,040 going on USC charges this year 448euros so far, I would be down 600..

On a personal level the level is still far too low. I'm working 20 hours, getting 10,592euros. While if I was on the social welfare I would be getting 8928 a difference of 1664euro for working, no incentive for people to get off the social (long term people).. Yet taxed near 500 so it's a 1,000 extra for working.. The USC charge need to be raised to 15,000..

The exemption level will be raised from 4004 to 10,036 so presumably you were already paying it, so you shouldn't be down anything. Also I would have thought you only pay the levee on anything above 10,036 so you should actually be taking home more (I not 100% on this so open to correction).

Also you can't really compare what you earn on twenty hour week to SW. If it was a 40hr week the comparison would be more valid.

msg11

Riskymove wrote: »

you would be liable for 4% of anything over 10,360

so that is about €700 a year in your case, so 4% would be €28

a year.... 54 cent a week

I can assure you it's not 54 cent a week!

ucd.1985

msg11 wrote: »

I can assure you it's not 54 cent a week!

Do explain ....

2moreMinutes

Riskymove wrote: »

you would be liable for 4% of anything over 10,360

so that is about €700 a year in your case, so 4% would be €28

a year.... 54 cent a week

Once you go over the exemption threshold all income is liable to the USC, not just the excess over the threshold.


Edit: Think I misread your post.

To clarify to OP, your whole income is liable to the USC so 2% on first €10036 and 4% on additional €1004 = €241 overall for year.

ShoulderChip

sorry I am still struggling with this, would someone on 30k be affected for example?

Padkir

ShoulderChip wrote: »

sorry I am still struggling with this, would someone on 30k be affected for example?

Only those who are on less than 10 grand will be affected. They will now no longer pay anything.

Those on 11 grand for example used to pay 4% on everything, they will still pay 4%.

I think people are getting it confused with the income tax model, where when you go over the standard cutoff, only the excess is taxed at the high rate, and up to the standard cutoff is still at the standard rate.

Long story short, only those on less than 10 grand are affected, if you're on more than this, you can ignore it, you're income will not change!

amacca

Padkir wrote: »

Only those who are on less than 10 grand will be affected. They will now no longer pay anything.

Those on 11 grand for example used to pay 4% on everything, they will still pay 4%.

now that is very disappointing.................................I had been going around for the last couple of hours thinking at least some of the new charges etc would be offset by paying a little less USC

what are peoples views on the merits, dare I say it "fairness":D of not doing it like the tax system and leaving the first 10k of everyone s income exempt

will this encourage people just over the 10k threshold to work less to qualify for no USC?...is the amount saved by this strategy negligible when compared to earning an extras couple of thousand a year etc or is it worthwhile and will it free up more hours for more part time earners / seasonal workers...is that the govt s thinking?

+ why is this thread titled budget 2010...this is a budget 2012 measure no

2moreMinutes

amacca wrote: »

will this encourage people just over the 10k threshold to work less to qualify for no USC?...is the amount saved by this strategy negligible when compared to earning an extras couple of thousand a year etc or is it worthwhile and will it free up more hours for more part time earners / seasonal workers...is that the govt s thinking?

Anyone earning between €10036-€10245 would be better off taking a pay cut/work less hours to get back to earnings of €10036 as the USC on the additional earnings over €10036 would eclipse the increased earnings themselves.

Earning anything over €10245 means you have more money in your pocket even when paying the USC on total earnings. Its only ~€200 of a window so its not as significant as it may first seem.

Liam Byrne

msg11 wrote: »

If I earn 11,040 a year working 20 hours a week am I still liable for this charge ?

If I work 18 hours a week I will be just under the 10,000.. Although down 1,040 going on USC charges this year 448euros so far, I would be down 600..

On a personal level the level is still far too low. I'm working 20 hours, getting 10,592euros. While if I was on the social welfare I would be getting 8928 a difference of 1664euro for working, no incentive for people to get off the social (long term people).. Yet taxed near 500 so it's a 1,000 extra for working.. The USC charge need to be raised to 15,000..

I have to laugh at this "no incentive for working" crap.......self-respect, integrity, not being a sponger and generally contributing / paying your way not an incentive at all ?

barneystinson

Riskymove wrote: »

you would be liable for 4% of anything over 10,360

so that is about €700 a year in your case, so 4% would be €28

a year.... 54 cent a week

That's wrong.

The €28 as you calculated is right, but the OP would also owe 2% on the first €10,036, €200.72, plus your €28, a total of €228.72. That's about €4.40 a week.

And that calculation is the same in 2012 as it was in 2011.

The change only affects people earning below the 10,036 threshold.

Victor

msg11 wrote: »

On a personal level the level is still far too low. I'm working 20 hours, getting 10,592euros. While if I was on the social welfare I would be getting 8928 a difference of 1664euro for working, no incentive for people to get off the social (long term people).

Part time workers may be entitled to some jobseekers allowance.

Riskymove

barneystinson wrote: »

That's wrong.

The €28 as you calculated is right, but the OP would also owe 2% on the first €10,036, €200.72, plus your €28, a total of €228.72. That's about €4.40 a week.

And that calculation is the same in 2012 as it was in 2011.

The change only affects people earning below the 10,036 threshold.

apologies, I thought the exemption applied to everyone, i.e. that it would now only kick in at 10036