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Tax Code

Dáil Éireann Debate, Tuesday - 8 May 2018

Tuesday, 8 May 2018

Ceisteanna (124)

Eugene Murphy

Ceist:

124. Deputy Eugene Murphy asked the Minister for Finance the reason a person (details supplied) who is newly employed by the Education and Training Board, ETB, is deemed exempt from the universal social charge, USC, in the last quarter of the person's first year in employment in view of the fact the Revenue Commissioners is seeking to recoup the USC from the person in the following year causing financial hardship; and if he will make a statement on the matter. [20032/18]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the person had an underpayment of Universal Social Charge for 2016. The underpayment arose because Revenue was not informed of the change in his employment circumstances. This resulted in his tax credits for the year being applied at previous years' rates which were below the USC threshold.

Revenue originally advised the person that the shortfall would be collected by reducing his tax credits over the course of 2018. This would have resulted in a reduction of just under €16 per week in his take home pay. Following discussions with the individual, Revenue agreed to collect the liability by reducing his tax credits over the years 2018 to 2021 (inclusive). The impact on his take home pay is a reduction of just under €4 per week.

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