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Universal Social Charge Application

Dáil Éireann Debate, Thursday - 21 November 2013

Thursday, 21 November 2013

Questions (95)

Pearse Doherty

Question:

95. Deputy Pearse Doherty asked the Minister for Social Protection the number of persons entitled to a health contribution health levy refund; the number that have received these refunds; if a deadline applies to claims for refunds; and the steps he is taking to notify those that may be eligible for a refund. [49846/13]

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Written answers

A person was liable to pay the health contribution where they earned in excess of €500 in any week. However, if over the course of the year their gross annual income was less than €26,000 a refund of the health contribution may be due.

In order to confirm that a refund is due my Department must carry out a manual check to ensure that the correct rate of PRSI was applied over the course of the relevant tax year. It is not possible to identify the number of people who are entitled to a health contribution refund until this check is carried out.

To date my Department has received over 290,000 applications for health contribution refunds. The processing of these applications is up to date and has resulted in approximately 48% of applicants receiving refunds.

Applications for refunds must be made within four years of the end of the year that the contribution was paid. For example, you must apply for a refund of health contributions paid in 2009 by 31 December 2013. Any contributions paid prior to 1 January 2009 are outside the time limit for making a claim.

The position with regard to entitlement is that if a person earned more than €26,000 in 2009 and/or 2010 they were liable to pay the health contribution and are not due a refund. If a person earned less than €26,000 and never earned more than €500 in any one week they would not have been charged the health contribution and are not eligible for a refund.

A person may be entitled to a refund of the health contribution if they have earned less than €26,000 in 2009 and/or 2010 and earned more than €500 in any particular week in those years.

Also employees who are Medical Card holders; recipients of social welfare widow's/widower's pension; one parent family payment; deserted wife's benefit, or certain EU pensions and payments, are exempt from the health element of the PRSI contribution (i.e. they are liable at the sub-class of contribution - A2, B2, C2, etc.). Refunds arise if the full contribution has been paid.

The health contribution was included in the Universal Social Charge (USC) with effect from 1 January 2011 and no health contribution refunds arise after that date.

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