Terence Flanagan (Dublin North East, Independent)
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84. To ask the Minister for Finance his views on a recommendation (details supplied) regarding the universal social charge; and if he will make a statement on the matter. [48951/14]

Michael Noonan (Limerick City, Fine Gael)
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The Universal Social Charge (USC) was introduced by the Finance Act 2011 and is charged for the tax year 2011 and subsequent years.  USC is charged on an individual's aggregate income for a tax year, which may include income from letting property. There was no change to the treatment of rental income for USC purposes in either Budget 2013 or Budget 2014. 

As the Deputy will be aware however, in addition to extending the USC exemption threshold to €12,012, I also reduced the two lower USC rates and extended the threshold before which the 7% rate becomes chargeable, with effect from 1 January next. This will apply to income earned from letting as it applies to income from any other source which is liable to USC.

Where an individual is a PAYE taxpayer and any other income (including rental income, as the case may be with an "accidental" landlord, for example) is fully taken into account in the PAYE system, the USC liability is collected within the PAYE system.  This has been the position for such PAYE taxpayers since USC was introduced in 2011. 

Where an individual is a chargeable person and pays and files under the self-assessment system, USC is included with the preliminary tax payment with any balance due with the tax return by 31 October in the following tax year. This position is also unchanged since USC was introduced.

Further information on the USC is available from the Revenue website at: