Written answers
Wednesday, 12 February 2014
Department of Finance
Universal Social Charge Exemptions
Terence Flanagan (Dublin North East, Independent)
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54. To ask the Minister for Finance if all couples are exempt from paying the universal social charge regardless of which spouse is over 70 years (details supplied); and if he will make a statement on the matter. [7064/14]
Michael Noonan (Limerick City, Fine Gael)
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All individuals are liable to pay the Universal Social Charge (USC) if their gross liable income exceeds the threshold of €10,036 per annum. Each spouse or civil partner is treated individually for the year. The concept of joint assessment for a couple does not apply in relation to the USC. The amount of USC payable will depend on the individual's age and the amount of his or her income.
The standard rates of USC are:
- 2% on the first €10,036Individuals aged 70 years or over, whose aggregate income for the year is €60,000 or less, will only pay USC at a maximum rate of 4%, that is, the first €10,036 of liable income is chargeable to USC at 2% and the balance of liable income is chargeable at 4%. Social welfare payments are not liable to USC. Individuals in possession of a full medical card whose aggregate liable income for the year is €60,000 or less also only pay USC at a maximum rate of 4%. The first €10,036 is payable at 2% and the balance is payable at 4%.
- 4% on the next €5,980, and
- 7% on the balance
In relation to the case referred to by the Deputy, I am advised by the Revenue Commissioners that their records show that the individual in question has been in possession of a medical card since 2013. As her income is less than €60,000, USC is payable at 2% on the first €10,036, with the balance charged at 4%. In 2012, the person in question was liable to pay USC at standard rates as Revenue records indicate that she was not in possession of a medical card at that time. If she was in possession of a medical card in 2012, she should notify the Fingal Revenue District and her USC liability for 2012 will be reviewed.
In the case of the individual's husband, Revenue records show that his liable income does not exceed the threshold of €10,036 per annum. Accordingly, he is exempt from USC.
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