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USC increased since December?

  • 05-02-2015 1:16pm
    #1
    tradhead
    Registered Users, Registered Users 2 Posts: 369 ✭✭


    Hi everyone,

    I am majorly confused about the USC. I really don't understand it at all.

    I was being charged about 10 euro a week from my payslip, which was fine. I then noticed that it had gone up to €15 some time before Christmas. I figured this was just something I had to put up with, and got on with things.

    Then, a week or two ago my housemates (who earn more than me) were talking about how they were getting a few extra euro into their payslip because of some change in the USC. I got all excited, opened my payslip but no increase for me. :(

    I've only been in this job since July last year- is it possible that this is something like emergency tax, where I will eventually get some money back? Apologies if I'm being a complete dum dum but as I said I really have no clue about these things. :o


Comments

  • #2
    chickenlicken2
    Registered Users, Registered Users 2 Posts: 171 ✭✭chickenlicken2


    Rates changed this year. For last year:
    2% on first 10036
    4% on next 5980
    7% on any remainder
    if you had a medical card at any point on 2014 you paid at 4% on anything over 10036.

    USC is spread over the year evenly, so for monthly pay 1/12 of those cut off points/bands apply to each month.

    If you only started in July and had a cumulative tax cert that means you went into July with 7/12 of those cut off points and a a such the tax is lower. Essentially the benefit of the unused weeks or months carried forward.

    Roll on 2015 and although the usc bands have changed you are only getting 1/12 in your payslip rather than the unused portion you had last year.


  • #3
    tradhead
    Registered Users, Registered Users 2 Posts: 369 ✭✭tradhead


    Wow, that's a lot of information!

    I actually briefly had a medical card in 2014 (finally got it after about six months unemployed and then got a job a week or two later!).

    Apologies for being a complete simpleton but- does what you've said mean that I am just stuck with the increased rate that I'm paying?

    Thanks so much for the help!


  • #4
    chickenlicken2
    Registered Users, Registered Users 2 Posts: 171 ✭✭chickenlicken2


    Short answer yes!

    Cumulative taxes are hard to explain by writing makes more sense with numbers on an excel spreadsheet.

    So you earned less income in 2014 which means there was less exposed to the higher rate of usc.

    By contrast you are starting work and getting paid in first month of 2015 therefore your income is subject to the usc but you only have 1/12 of the reduced bands whereas in your first paycheck last year in July you had 7 months built up.

    Get your P60 for 2014 look at the section re pay for usc purposes. Recalculate at 2% for first 10036 and 4% for balance (as you had medical card) and compare that to what was paid.


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