Query on USC exemption status treatment

Senature

Just wondering if anyone has any experience of this.

A part-time worker has a USC exemption that they have held for the past few years (due to earning under the threshold).

It is possible that they may earn over the threshold in 2024, but this cannot be stated with certainty as yet as their hours / shifts change regularly due to other commitments.

Has anyone any experience of how Revenue treat these situations? E.g. If Revenue were advised in October that the annual income may exceed 13k, will they immediately look for USC to be paid on all income to date?

Thank you.

nhg

Revenues computer system will remove the USC exemption marker once the €13K exemption is exceeded & put the taxpayer on a Week 1 basis of assessment to prevent the underpayment of USC from being collected from the next payroll. The taxpayer will pay USC every payroll after the exemption has been removed. The underpayment from earlier in the year will still be outstanding after the year end.

A taxpayer can remove the USC exemption themselves through Manage My Taxes 2024 in PAYE services, if their income doesn’t exceed the €13K threshold they will get a full refund of USC paid by submitting an income tax return (eForm 12) after the year end.

Senature

Thank you for the information, that's very helpful. I presume Revenue would look to collect any underpayment of USC at year end?

nhg

https://www.boards.ie/discussion/comment/122397903#Comment_122397903

Yes, through the income tax return - eForm 12