The position is that the Universal Social Charge (USC) is a charge on the gross income of individuals if their gross income exceeds the USC threshold of €10,036 per annum. I assume that the Deputy is referring to the circumstances applicable to an individual who is a director of his or her own company. Such an individual is subject to tax under Schedule E on his or her salary from the company under the PAYE system. Income that is subject to the PAYE system constitutes relevant emoluments for the purposes of USC.
Where the services of the individual are being contracted out by his or her company to another company or business, and payment for those services is made by the second company or business to the individual’s own company, such payment is not subject to USC. An assumption underlying the situation referred to above is that the individual is not an employee of the company or business to which he is contracted. While this may be true in the generality of cases, it cannot be automatically assumed. The facts of each case will determine whether there is an implied contract of employment between the individual and the other company or business. Should it be determined that there is such a contract then any payment made would be subject to USC.