Dáil Éireann Debate, Tuesday - 23 April 2013
180. Deputy Paschal Donohoe asked the Minister for Finance the reason a person (details supplied) in Dublin 7 is being charged universal social charge on their pension income and income from a home help job that they have despite that income not being assured from week to week; and if he will make a statement on the matter. [18255/13]
View answerThe position is that Universal Social Charge (USC) is chargeable on gross income exceeding €10,036 per year. The standard rates of USC are: 2% on the first €10,036, 4% on the next €5,980, 7% on the balance. Revenue records indicate that the income of the person in question exceeds €10,036 per year and, accordingly, she is liable to USC.
Occupational pensions and employment income are both subject to USC. As the person in question has two sources of income, the USC thresholds have been allocated between both sources. USC is deducted on a cumulative basis. This means that deductions are spread out evenly over the year. If the person in question does not have income from her home help job every week, then the threshold allocated will accumulate and be used on the next payday. If, at the end of the year, the person concerned thinks she has overpaid USC, she should contact her local Revenue office for a review of USC deductions. In this regard, the Revenue Commissioners have carried out a review of deductions in the year 2012 and an overpayment of €9.16 has arisen. A refund for this amount will now issue.
